Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | -5.7% |
| 2025 | 2024 |
|---|---|
| -5.7% | 11.8% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | -5.7% |
| 2025 | 2024 |
|---|---|
| -5.7% | 11.8% |
SVN Capital Fund returned -5.65% net in 2025, a year where business results moved in the right direction while stock prices moved the other way in several of the largest holdings. The portfolio remains concentrated in 11 businesses that fit the royalty on the growth of others pattern - capital-intensive to build correctly, increasingly capital-light at the margin, and supported by long reinvestment runways at attractive incremental returns. Companies such as KKR, HEICO, Hermès, Bajaj Finance, Copart, and others continue to meet core criteria despite price weakness. Key themes include India's long-term compounding opportunity with roughly one-fifth of the portfolio invested there, AI adoption across portfolio companies, and the structural shift of alternative assets from margins to mainstream. Portfolio activity included exiting two positions and initiating three new ones. Return on capital employed across the portfolio was roughly 27% in 2025 compared to 21% three years ago, while valuations are more attractive today than a year ago, improving prospective returns for patient capital.
SVN Capital focuses on owning a royalty on the growth of others - businesses that get paid when their customers grow, without having to match them dollar for dollar to stay in the game, requiring little capital themselves while generating high incremental returns with room to reinvest.
If I were handed fresh capital today, with no history attached, and asked to build a portfolio for the next decade, it would look very much like the one we already own today. Valuations are more attractive today than a year ago, with return on capital employed across the portfolio in 2025 roughly 27%, compared to 21% three years ago.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 12 2026 | 2025 Q4 | 532978.NS, 533655.NS, COHR, HEI, KKR, KNSL, RML.PA | aerospace, AI, Alternative Asset Managers, Concentration, India, insurance, Quality, value |
BAF IN TRIV IN CPRT KNSL KKR HEI |
India combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. AI represents a new layer of software and automation that is already changing how work is done, how products are built, and how decisions are made. It has triggered a significant investment cycle across the physical stack including chips, servers, networking equipment, power generation, cooling, and data centers. Several businesses in the portfolio are already using these tools to improve efficiency, decision-making, and service quality. The alternative-asset industry is still in the early stages of moving from the margins into the mainstream, both for institutions and particularly for private-wealth clients. KKR's three-engine model is designed for this structural shift, with management aiming to build a business that can double and then double again, taking adjusted net income per share from $3.42 in 2023 to more than $15 within roughly 10 years. HEICO operates in the unglamorous world of replacement parts and mission-critical components, serving as the world's largest independent supplier of FAA-approved PMA replacement parts. The business benefits from structural tailwinds including Americans driving more, an aging vehicle fleet, and rising repair complexity that means more vehicles are totaled rather than repaired. The excess and surplus (E&S) segment has grown steadily for years, with AM Best estimating that direct premiums written are approaching $130 billion, accounting for more than a quarter of all U.S. commercial-lines premium. Kinsale has built a focused underwriting business designed for speed, discipline, and cost efficiency with consistently low expense ratios in the low-20s. |
| Jul 8 2025 | 2025 Q2 | BAF IN, CPRT, DNOPY, KKR, TRIV IN | Compounding, earnings visibility, growth, innovation, long-term |
KKR CPRT DNOPY TRIV IN |
The fund focuses on durable growth companies benefiting from secular demand rather than cyclical rebounds. Earnings visibility and reinvestment opportunities underpin long-term compounding. Market volatility is viewed as an opportunity to add to high-conviction positions. |
| Jan 8 2025 | 2024 Q4 | BAF IN, DNOPY, KKR, RMS FP | - | - | |
| Oct 7 2023 | 2023 Q2 | 0QTE LN, CPRT, HEI, KNSL, ODFL, RMS FP | - | - |
| 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 |
Alternative Asset ManagersMA Financial is viewed as an alternative asset manager experiencing strong momentum across its platform, particularly in Asset Management which drives long-term shareholder value. The company has invested ahead of the curve to build scalable operating platforms, with operating leverage becoming evident as revenues scale over a largely fixed cost base. |
Asset Management Operating Leverage Scalable Platforms Fee-earning Assets Financial Services | |
IndiaIndia combines sustained economic growth, rising formalization, deepening capital markets, and a growing pool of well-run, founder-led businesses with long reinvestment runways. The economy has grown from about $1 trillion to around $4 trillion over roughly 17 years, with credible estimates suggesting it could roughly quadruple over the next 15-20 years. India has moved from the periphery to the center of global equity markets as the fourth-largest listed market in the world. |
Formalization Capital Markets Growth Emerging Markets | |
P&C InsuranceProperty & casualty reinsurers were added to the portfolio as capital was redeployed from trimmed bank positions. Pricing trends in insurance markets have been strong in recent years. Chubb has consistently generated returns on equity comfortably ahead of the industry owing to advantaged lines of business with disciplined underwriting and operating culture. |
Reinsurance P&C Insurance Underwriting Pricing Returns | |
SpaceThe fund has high conviction exposure at close to 20% of NAV to SpaceX through holdings in Echostar and Filtronic, both publicly listed proxies for SpaceX. The manager published a white paper on these holdings titled SpaceX the Central Bank of the Space Economy and Its Public-Market Proxies. SpaceX represents an earlier stage monopolistic business with attractive growth rates and durable moats. |
SpaceX Satellites Aerospace | |
| 2025 Q2 |
Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | CPRT | Copart, Inc. | Industrials | Specialty Business Services | Bull | NASDAQ | Marketplaces, Moat, Networkeffects, Salvage, Vehicles | Login |
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | KNSL | Kinsale Capital Group, Inc. | Financials | Property & Casualty Insurance | Bull | New York Stock Exchange | buybacks, Discipline, Float, Insurance, underwriting | Login |
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | KKR | KKR & Co. Inc. | Financials | Asset Management & Custody Activities | Bull | New York Stock Exchange | Alternatives, Assetmanagement, compounding, Fees, Insurance | Login |
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | HEI | HEICO Corporation | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Acquisitions, Aerospace, aftermarket, compounding, Margins | Login |
| Jul 8, 2025 | Fund Letters | Shreekkanth Viswanathan | KKR | KKR & Co., Inc. | Financials | Capital Markets | Bull | New York Stock Exchange | Annuities, buyout, compounding, Deployment, Drypowder, Realizations, Valuations, Volatility | Login |
| Jul 8, 2025 | Fund Letters | Shreekkanth Viswanathan | CPRT | Copart, Inc. | Industrials | Diversified Support Services | Bull | NASDAQ | Auction, Autos, electronics, inflation, Insurance, Labor, Margins, network, platform, Salvage | Login |
| Jul 8, 2025 | Fund Letters | Shreekkanth Viswanathan | DNOPY | Dino Polska S.A. | Consumer Staples | Food Retail | Bull | Dubai Financial Market | compounding, expansion, grocery, Poland, Regulations, retail, Staples, traffic | Login |
| Jul 8, 2025 | Fund Letters | Shreekkanth Viswanathan | TRIV IN | Triveni Turbine Limited | Industrials | Industrial Machinery & Supplies & Components | Bull | New York Stock Exchange | aftermarket, CapEx, duopoly, efficiency, Exports, Governance, Netcash, Orderbook, Roce, Turbines | Login |
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | BAF IN | Bajaj Finance Limited | Financials | Consumer Finance | Bull | New York Stock Exchange | AI, compounding, India, Lending, underwriting | Login |
| Jan 12, 2026 | Fund Letters | Shreekkanth Viswanathan | TRIV IN | Triveni Turbine Limited | Industrials | Industrial Machinery | Bull | New York Stock Exchange | backlog, Exports, Industrial, ROIC, Turbines | Login |
| TICKER | COMMENTARY |
|---|---|
| 532978.NS | Bajaj Finance was one of the few holdings that worked in 2025. In rupee terms, the share price rose roughly 45% in 2025. It reinforced my view of Bajaj as the highest-quality lender in an under-penetrated and rapidly formalizing credit market. More interesting is how deliberately the company is remaking itself as 'FinAI'—a financial services platform built around deep technology and artificial intelligence rather than a traditional branch-and-paper mindset. Looking out over the next several years, the company expects to more than double its customer franchise, from just over 100 million customers today, to 200–220 million by 2030. |
| 533655.NS | Triveni Turbine tested my patience this year. It is India's leading manufacturer of industrial steam turbines for captive power and co-generation across process industries such as sugar, paper, textiles, chemicals, cement, and steel. The share price reversed course in 2025. Triveni gave back a meaningful portion of its earlier gains and ended the year lower, caught in a broader de-rating of Indian mid- and small-cap industrials and rising investor caution toward export-oriented engineering businesses. Triveni ends the year with a record order book, very high returns on capital, and a debt-free, cash-rich balance sheet. |
| COHR | Copart is the leading global marketplace for damaged and end-of-life vehicles, sitting between insurance companies that need to dispose of total-loss cars and a fragmented, worldwide base of dismantlers, rebuilders, dealers, and exporters. Against that backdrop, the last four quarters have been stronger in the business than in the stock. Revenue and operating income have continued to grow, helped by steady fee-per-unit gains, higher international contribution, and ongoing expansion of yards and services. These concerns about near-term volume and a supposedly resurgent competitor have weighed on sentiment, and the share price has reflected that—Copart is down roughly 30% in 2025. |
| HEI | We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. |
| KKR | Over the prior two years, KKR was one of the Fund's strongest contributors. From the end of 2022 through the end of 2024, the shares more than tripled, rising roughly 80% in 2023 and another 80% in 2024, as the market began to recognize the earnings power of its asset-management and insurance platforms. This year, the stock told a different story: in 2025 it was down about 13% and was roughly 23% below its January peak. Strip away the stock-price swings, and the business itself has continued to grow. Fee-related earnings, insurance earnings, and long-dated capital have all moved higher, even as market sentiment toward rates, credit, and capital flows into alternatives has become more cautious. |
| KNSL | Shares of specialty insurer Kinsale Capital Group, Inc. fell during the quarter due to concerns about moderating growth amid a cyclical slowdown for the property and casualty insurance industry. While third-quarter revenue growth improved sequentially, the pace of improvement was more modest than suggested by monthly data from state insurance commissioners. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||