| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 9.2% | -6.8% | -6.8% |
Spheria Global Opportunities Fund returned -1.9% in March 2026, outperforming the MSCI World Small Cap Index by 2.0% during a month dominated by Middle East conflict escalation. The fund benefited from timely positioning decisions, including adding CF Industries at the start of March as geopolitical tensions disrupted nitrogen fertilizer supply chains through the Strait of Hormuz. CF's North American production base and low-cost feedstock provided structural advantages during the supply disruption. The portfolio faced headwinds from Intertek, which fell sharply despite solid fundamentals, presenting what management views as an attractive opportunity at 12x EBIT for a quality global services business. The fund used market weakness to selectively add to de-rated software positions where overreactions created value opportunities. Management repositioned the portfolio over the past six months, adding energy exposure and focusing on businesses with strong balance sheets and cash generation. The fund maintains conviction in its long-term approach of buying quality businesses at sensible valuations, believing the portfolio is well positioned for future performance.
Focus on high-quality global small cap businesses with strong cash generation, conservative balance sheets, and sensible valuations, taking advantage of market overreactions to create long-term value.
The fund believes the portfolio is well positioned to deliver from current levels. Focus remains on making good long-term investment decisions, buying high-quality businesses with strong cash flow and balance sheets at sensible valuations. Management remains confident the numbers will follow this approach.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 29 2026 | 2026 Q1 | CF, ITRK.L, USLM | energy, Fertilizers, global, Middle East, Quality, small cap, valuation |
CF ITRK.L |
Spheria Global Opportunities outperformed in March despite Middle East tensions, benefiting from timely CF Industries addition as fertilizer supply disruptions boosted prices. Used Intertek weakness as buying opportunity at attractive 12x EBIT valuation. Portfolio repositioned toward quality businesses with strong cash generation and conservative balance sheets at sensible valuations. |
| Jan 14 2026 | 2025 Q4 | ACLR.SW, CARG, EXPD, HEM.ST, ITRK.L, JKHY, PAYC, RMV.L, SPNS, YETI | financials, global, industrials, Quality, small caps, technology |
JKHY PAYC |
Spheria's global small cap fund underperformed in Q4 2025 as quality-focused strategies faced headwinds from markets favoring unprofitable AI-concept stocks. Strong performers included banking software provider JKHY and logistics company Expeditors, while HR software firm Paycom struggled with soft job market conditions. Managers maintain conviction in their disciplined, valuation-aware approach to high-quality businesses. |
| Oct 30 2025 | 2025 Q3 | CARG, FERG, HEM.ST, ITRK, LPLA, SPNS, UHR.SW, USLM, WMK | AI, fundamentals, global, Quality, risk management, small cap, Speculation, value |
LPLA USLM |
Spheria Global Opportunities Fund underperformed in October as markets rewarded speculation over fundamentals, with loss-making companies outperforming quality businesses. Despite frothy market conditions favoring AI momentum and excessive valuations, the fund maintains disciplined focus on cash-generative, high-quality businesses at reasonable prices, believing this approach will deliver superior long-term returns when markets return to fundamentals. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
FertilizersCF Industries benefited from Middle East conflict disrupting nitrogen fertilizer supply through Strait of Hormuz, sending prices sharply higher. CF's North American production base and low-cost domestic feedstock provided structural advantage during supply disruption. |
Nitrogen Ammonia Urea Supply Chain Energy |
OilMiddle East conflict escalation and Strait of Hormuz shipping disruption sent oil prices spiking, creating inflationary concerns and pushing bond yields higher. Fund was underweight energy complex heading into March but added exposure timely. |
Energy Geopolitics Supply Chain Inflation Commodities | |
Testing & InspectionIntertek fell sharply despite solid results showing revenue growth, margin expansion, and strong cash generation. Market overreacted to currency headwinds and forward guidance, creating opportunity at undemanding 12x EBIT valuation for quality business. |
Quality Assurance Global Services Regulatory Valuation UK | |
| 2025 Q4 |
ValueFund focuses on buying shares in decent operating businesses at significant discounts to intrinsic value. European value stocks had their largest outperformance versus growth stocks in 30 years, beating them by 19 percentage points. Manager believes value will continue to outperform growth during the remainder of this decade. |
Value Investing Discount Intrinsic Value P/E Ratios Deep Value |
InsuranceVienna Insurance Group was the best performing stock, generating 158% return in USD. NN Group generated 85% return despite trading at discount to book value. Both companies demonstrate strong capital allocation and market leadership positions in their respective regions. |
Life Insurance P&C Insurance Central Europe Capital Allocation Book Value | |
ShippingFund exited car carrier operating companies after generating exceptional 110% annual IRR over five years. Wilhelmsen Holding remains a top position at 48% discount to NAV, providing exposure to high-quality maritime assets with less cyclical risk. |
Car Carriers Maritime Cyclical NAV Discount Freight Rates | |
BiotechnologyNew investment in RTW Biotech reflects belief that gene splicing and editing are the next big thing over the coming generation. Fund bought shares at 23% discount to NAV and expects to hold for many years, anticipating multiple returns on original investment. |
Gene Editing Biotech Funds M&A Activity China Innovation Patent Cliff | |
Private EquityFund deployed proceeds from Altamir sale into other well-managed listed private equity funds trading at circa 30% discounts to NAV. These funds compound NAV at low teens rates and are considered top quartile, offering excellent deployment opportunities on attractive terms. |
Listed Private Equity NAV Discounts Secondaries Market Capital Deployment Top Quartile | |
| 2025 Q3 |
AIMarkets remained captivated by the relentless momentum of all things AI, a theme increasingly shaping narratives around productivity, employment, and market structure, even as a growing chorus warned of speculative excess. |
Artificial Intelligence Productivity Speculation Technology Market Structure |
Risk AppetiteMarket conditions are displaying increasingly frothy characteristics, with high price-to-earnings multiples and loss-making companies significantly outperforming fundamentally sound businesses with strong returns and balance sheets, a classic indicator of excessive market exuberance. |
Speculation Valuations Market Exuberance Loss Making Fundamentals | |
QualityThe fund maintains disciplined focus on cash generation, balance sheet strength, and sensible valuations, believing high-quality, cash-generative businesses purchased at reasonable prices provide the surest path to long-term outperformance. |
Cash Generation Balance Sheet Valuations Fundamentals Long Term |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 29, 2026 | Fund Letters | Spheria Global Opportunities Fund | CF | CF Industries | Agricultural Inputs | Fertilizers & Agricultural Chemicals | Bull | New York Stock Exchange | cash generation, commodity, Energy Complex, Fertilizer, geopolitical, manufacturing, natural gas, Nitrogen, North America, Structural Advantage | Login |
| Apr 29, 2026 | Fund Letters | Spheria Global Opportunities Fund | ITRK.L | Intertek | Specialty Business Services | Research & Consulting Services | Bull | New York Stock Exchange | Certification, Global Services, Inspection, Quality Assurance, Regulatory, strategic review, supply chain, Testing, UK Listed, value unlock | Login |
| Jan 14, 2026 | Fund Letters | Marcus Burns | JKHY | Jack Henry & Associates, Inc. | Information Technology | Application Software | Bull | NASDAQ | banking, cloud, Moat, Recurring, Software | Login |
| Jan 14, 2026 | Fund Letters | Marcus Burns | PAYC | Paycom Software, Inc. | Information Technology | Human Capital Management Software | Bear | New York Stock Exchange | HCM, Jobs, Payroll, Software, valuation | Login |
| Oct 30, 2025 | Fund Letters | Marcus Burns | LPLA | LPL Financial Holdings Inc. | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Advisors, cashflow, growth, Platforms, synergies | Login |
| Oct 30, 2025 | Fund Letters | Marcus Burns | USLM | United States Lime & Minerals, Inc. | Materials | Construction Materials | Bull | NASDAQ | Barriers, cashflow, duopoly, materials, Pricing | Login |
| TICKER | COMMENTARY |
|---|---|
| CF | CF Industries (CF US) - is North America's largest nitrogen fertiliser producer, manufacturing ammonia, urea, UAN and ammonium nitrate from its network of plants across the US and Canada. CF's business model is built around the nitrogen "spread", meaning it purchases North American natural gas as its primary feedstock (at Henry Hub prices) and sells nitrogen products whose prices are set by global marginal cost producers, typically in Europe and the Middle East. This structural cost advantage has been a consistent feature of the business since the US shale gas revolution and underpins CF's strong track record of cash generation and high returns on capital. The position was initiated at the start of the month in part to increase the Fund's exposure to the energy complex, where we were underweight heading into March. This proved timely. The escalation in the Middle East and the effective disruption to shipping through the Strait of Hormuz - through which a significant share of global urea and ammonia trade flows - sent nitrogen fertiliser prices sharply higher during the month. CF, with its production base entirely outside the affected region and access to low-cost domestic feedstock, was a direct beneficiary. The balance sheet is conservatively geared, with net debt to EBITDA below 1.0x, and the company returned US$1.7 billion to shareholders in 2025 via dividends and buybacks. Whilst the magnitude of the near-term earnings tailwind will depend on the duration of the supply disruption, we are comfortable owning a high-quality, cash-generative business with a durable cost advantage at a valuation that does not require sustained elevated commodity prices to justify. |
| USLM | Over the month the largest contributors were an overweight position in US Lime & Minerals, (USLM US, +19%) |
| ITRK.L | Intertek (ITRK LN) - is a UK-listed global provider of assurance, testing, inspection and certification (ATIC) services, operating across more than 100 countries and serving over 400,000 customers. It has been a consistent top 5 holding in the Fund. The share price fell sharply during March despite reporting a solid set of full year 2025 results on 3 March. Revenue grew 4.3% at constant currency, operating margin expanded 90 basis points to 18.1%, and EPS grew 10.1% at constant rates, the third consecutive year of double-digit earnings growth. Return on invested capital reached 21.3% and the business continues to generate strong free cash flow. However, the stock fell ~14% on the day of the result as the market focused on currency headwinds (sterling strength created a 320 basis point drag on reported growth) and what it perceived as unexciting forward guidance of mid-single digit like-for-like revenue growth. The broader sell-off in UK-listed names amid escalating Middle East tensions compounded the weakness, as did the announcement that CFO Colm Deasy would be stepping down from the board to take on an operational role within the group. Insider selling by the CEO (<10% of his holding) added further to negative sentiment. Subsequent to month end, Intertek provided a Q126 trading update that reinforced our conviction that the market's reaction was disproportionate. Like-for-like revenue grew 5.4% (comfortably ahead of consensus) with particular strength in Corporate Assurance (+10.8%) and Consumer Products (+6.5%). Full year guidance of mid-single digit like-for-like revenue growth was reiterated. The company also announced a strategic review to evaluate whether separating into two specialist businesses - Intertek Testing & Assurance (£1.9bn revenue) and Intertek Energy & Infrastructure (£1.6bn revenue) - via sale or demerger could unlock additional shareholder value. The stock rallied ~13% on the day. We view this as a sensible initiative and will follow its progress closely as the review is expected to conclude by mid-2027. Even after the post-month-end rally, Intertek trades on an undemanding 12x EBIT. This is simply too cheap for a business that continues to execute well, whose competitive position is strong, and where demand for quality assurance services is structurally growing as supply chains become more complex and regulatory requirements intensify. We remain holders. |
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