| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 18.9% | 6.6% | - |
| 2025 |
|---|
| 37.7% |
The smallvalue portfolio delivered strong performance in 2025 with a 37.7% return in euros and 6.62% in Q4, significantly outperforming the S&P 500's 4% and MSCI World Small Caps' 6%. Since inception in 2020, the portfolio has generated 155.44% cumulative returns with 18.87% annualized performance. The manager maintains focus on undervalued small-cap companies in traditional industries like cement, food, and glass, avoiding trendy AI names despite potential opportunity costs. Key detractor Sprouts Farmers Market declined 45% but remains a high-quality business with expansion plans to triple store count. Olvi Oyj showed promise with strategic acquisitions expanding its beverage portfolio across Europe. The manager highlights structural opportunities in Europe's capital investment wave for reindustrialization, digitalization, and electrification, particularly benefiting copper and industrial suppliers supporting data center buildout. AI represents 2% of US GDP with massive infrastructure requirements. Portfolio remains positioned for long-term value creation through disciplined fundamental analysis, maintaining confidence in current holdings while managing liquidity prudently.
Focus on undervalued small-cap companies in traditional industries with straightforward business models, emphasizing long-term value creation over chasing trendy high-profile names, while maintaining confidence and stability in holdings through disciplined fundamental analysis.
The manager expects 2026 to be a year of continued learning about investing, sharing companies, learning from better investors, meeting interesting people, and improving as a person while enjoying the process. On the macro side, he honestly has no idea what will happen but highlights a positive case for Europe facing massive capital investment waves.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | AVGO, NVDA, OLVI.HE, ORCL, PLTR, SFM, TSLA | AI, Beverages, Copper, Data centers, Europe, Grocers, small caps, value | SFM | Artificial intelligence was the central theme of 2025, driving stock indices and sparking debate between believers and bubble warnings. The conversation is shaped by massive… |
| Oct 3 2025 | 2025 Q3 | CALT IM, HP3A GR, ORS IM, SL IM | Europe, gold, management, small caps, value |
ORS RGG SLR MAMA |
The commentary centers on disciplined value investing, emphasizing margin of safety, independent thinking, and learning from mistakes. The manager reflects on behavioral errors such as… |
| Jun 12 2025 | 2025 Q2 | 0FDN LN, CALT IM, OLVAS FH, ORS IM | conviction, long-term, Patience, small caps, valuation gaps | - | The commentary underscores patience and long-term conviction in small and micro-cap investments. Management reflects on mistakes caused by premature selling and reinforces holding through volatility… |
| May 8 2025 | 2025 Q1 | ORS IM, SL IM | - | - | - |
| Jan 6 2025 | 2024 Q4 | OLVAS FH, ORS IM, SL IM | - | - | - |
| Oct 10 2024 | 2024 Q3 | OLVAS FH, ORS IM | - | - | - |
| Jul 12 2024 | 2024 Q2 | TGYM IM | - | - | - |
| May 3 2024 | 2024 Q1 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
BeveragesOlvi Oyj announced strategic acquisitions in Q1 2026, including Estonia's leading mineral water producer Värska Originaal, Bosnia's largest brewery Banjalucka Pivara, and a 51% acquisition of Brewery International. These transactions expand Olvi's non-alcoholic and alcoholic beverage portfolios, increase sales volumes, and strengthen production capabilities across the Baltics, Nordics, and Mediterranean markets. |
Water Alcohol Europe Nordics | |
CopperMarket shifted from deficit to surplus as Chinese demand stalled for first time in 25 years while supply expanded by 3 million tonnes since 2021. Exchange inventories reached 1.2 million tonnes, highest since 2003. Bearish outlook as China transitions from under-consuming to over-consuming copper. |
Base Metals China Inventories Surplus | |
Data CentersEMCOR Group was initiated as a new position, viewed as a critical contractor enabling multi-year investment cycles across data centers, semiconductor fabrication, electrification, and broader infrastructure modernization. Its decentralized, cash-generative model, recurring service base, and exposure to structural growth drivers create a profile viewed as more durable than a typical cyclical contractor framework. |
Infrastructure Electrification Recurring Revenue Growth Drivers | |
GrocersSprouts Farmers Market remains a high-quality business with some of the best operating margins in its sector and continues to repurchase shares aggressively. The company has ambitious expansion plans, aiming to triple its footprint from 450 to 1,400 stores nationwide while maintaining its fresh-first mission. |
Specialty Retail Buybacks Food Distribution | |
| 2025 Q3 |
GoldGold reached record highs above $5,000 per ounce but silver's dramatic rally has triggered a sell signal. Historical pattern suggests both metals may enter 2-3 year correction period. Central bank demand remained strong at 863 tonnes for 2025, though China purchases slowed significantly. |
Precious Central Banks ETFs Debasement |
Small CapsThe fund invests in a portfolio of competitively advantaged small and medium-sized businesses, which remained out of favor for most of the quarter. The strategy of owning leading small-cap businesses has been the foundation since inception, delivering 354 basis points of annual outperformance over the benchmark since inception despite recent headwinds. |
Growth Outperformance Benchmark Russell Businesses | |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic | |
| 2025 Q2 |
Patience |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 3, 2025 | Fund Letters | David Pintado | ORS | Orsero S.p.A. | Utilities | Food Distribution | Bull | - | Distribution, Europe, Food, fundamentals, growth, Margins | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | RGG | Ringmetall AG | Real Estate | Industrial Packaging | Bull | - | Acquisitions, FCF, Industrials, manufacturing, Niche, Packaging | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | SLR | Sanlorenzo S.p.A. | Materials | Leisure Products | Bull | - | growth, Italy, Luxury, manufacturing, premium, Yachts | Login |
| Oct 3, 2025 | Fund Letters | David Pintado | MAMA | Mama’s Creations Inc. | Consumer Staples | Packaged Foods | Bull | NASDAQ | consumer, Food, growth, Packaged goods, retail | Login |
| Jan 6, 2026 | Fund Letters | David Pintado | SFM | Sprouts Farmers Market Inc | Consumer Staples | Food Retail | Bull | NASDAQ | buybacks, cashflow, expansion, grocery, Margins | Login |
| TICKER | COMMENTARY |
|---|---|
| AVGO | During the quarter, we initiated a below-average weight position in leading semiconductor and infrastructure software company Broadcom. Broadcom's ongoing transformation from a provider of custom ASICs to a full rack-scale solutions vendor, including scale-up networking, marks a significant improvement in its strategic positioning compared to earlier in the year. This strategic evolution has been validated by recent product launches, such as the Scale-up Ethernet solution, and committed orders from major customers like Anthropic. |
| NVDA | Capital spending from Google, Microsoft, Amazon, Meta, OpenAI, and more have led to Nvidia becoming the Rrst 5 trillion market cap company. |
| OLVI.HE | I would like to highlight a positive note for 2026, following a modest increase of just 7.4% in 2025. Olvi Oyj, a company I have summarised on my blog, deserves a brief recap here in case you are not familiar with it. The company is a Finnish small-cap with a €642M market capitalisation and continues to demonstrate strong fundamentals. Olvi benefits from substantial ownership, with over 16.19% held by the Olvi Foundation, and maintains solid financials. Valuation remains attractive, with low multiples of approximately 11x earnings and 8x EBITDA, suggesting potential undervaluation. Despite some illiquidity and geopolitical uncertainty in Belarus, Olvi's long-term prospects remain promising. In the latter part of 2025, Olvi announced a series of strategic acquisitions aimed at expanding its product portfolio and entering new markets, all scheduled for Q1 2026. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| PLTR | AI-enabled surveillance company Palantir trades at over 100 times sales. |
| SFM | The biggest detractor for the portfolio was Sprouts Farmers Market, which declined 45% in 2025 (in EUR). While the company has continued to grow, it has done so at a slower pace, which led the market to react sharply, with a one-day correction of 27%. To be honest, the previous valuation of $170 per share was likely excessive, and part of the correction reflects that. However, this remains a high-quality business. Sprouts has some of the best operating margins in its sector and continues to repurchase shares aggressively. Moreover, the company has ambitious expansion plans, aiming to triple its footprint from 450 to 1,400 stores nationwide. CEO Jack Sinclair has emphasised that the health-focused grocer plans to expand "from sea to shining sea," while maintaining its fresh-first mission. It is a steadily growing business with opportunities to open more stores and launch its own products, which should help better control costs and improve margins. The stock currently trades at approximately 15x earnings and 9x EBITDA, with a free cash flow yield of around 6%. The company benefits from expanding margins, a clean balance sheet, solid cash flow, and strong management—qualities that make it a compelling player in the grocery sector. The business still has strong long-term prospects, and we may see its stock return to around $150 per share. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
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