| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Sorfis Investments delivered positive returns across strategies in 2025, with Diversified Strategy returning 7-15% and Absolute Return Strategy achieving 13-18%. As self-described value investors, they experienced typical value stock patterns: strong Q1 performance, underperformance after Liberation Day, and solid year-end gains. The manager emphasizes three key themes: AI's transformative potential driving unprecedented capital expenditures in data centers and infrastructure, the continuation of their value investing approach finding opportunities outside major indices, and expectations for returning market volatility to create additional opportunities. Key concerns include record S&P 500 valuations and concentration levels that historically precede flat or negative decade-long returns, plus uncertainty around AI spending returns and duration. The firm trimmed overvalued positions and added during volatility periods, with positioning decisions influenced by tax considerations across account types. Looking forward, they maintain their disciplined value approach while preparing for eventual market volatility and bubble corrections, drawing lessons from Warren Buffett about patience and opportunistic investing during market dislocations.
Value investing approach focused on finding opportunities outside major indices while maintaining discipline and patience, particularly as markets face record valuations and unprecedented AI-driven capital expenditure cycles.
The manager continues to find good value outside of major indices and expects to find more opportunities if volatility returns to markets, as it eventually always does. They maintain a cautious stance given record valuations and concentration levels.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | BRK-A | AI, Capital Expenditures, technology, Valuations, value, volatility | - | AI is expected to have an impact significantly greater than the internet on our lives. Companies involved in AI are spending unprecedented amounts of money, with formerly capital-light businesses becoming among the most capital-intensive in the world as demand for data centers and infrastructure drives capital expenditures to a scale never seen in U.S. economic history. Key uncertainties include the return on this spending, duration of the boom, energy resource adequacy, and financing methods. The manager identifies as value investors at heart and notes that value stocks generally performed well in the first quarter of 2025, underperformed major indices for most of the year after Liberation Day, and finished with solid gains. They continue to find good value outside of major indices and expect to find more opportunities if volatility returns to markets. The manager expects volatility to eventually return to markets as it always does, which would create more value opportunities. They reference volatility around Liberation Day that provided opportunities to add to holdings, and note that savvy investors may have less time than previously thought to prepare and protect portfolios given historical patterns of capital expenditure booms. |
| Feb 24 2025 | 2024 Q4 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
VolatilityMarket volatility in spring 2025 triggered by trade tariff uncertainty led to a broad sell-off, with strategies down over 23% year-to-date at the trough. The manager used this volatility to add exposure at attractive prices during the decline. |
Market volatility Sell-off Opportunity Exposure Timing |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BRK-A | Miles mentioned that he had been a long-term shareholder of Berkshire Hathaway and had never sold his shares. Over roughly twenty-five years, his investment compounded at about 10.9% annually. The first dollar he invested became approximately thirteen dollars. Since around 1990, Berkshire has only marginally outperformed the S&P 500. By Buffett's own historical standards, this period could be described as mediocre. And yet, admiration for Buffett has not faded—if anything, it has intensified. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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