| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The Tarkio Fund focuses on companies undergoing cultural transformations toward Lean management practices, emphasizing employee empowerment and continuous improvement. The fund's strategy has evolved from acquiring proven Lean companies at attractive prices to identifying struggling businesses at compelling valuations at the very moment transformation begins, often when proven Lean leaders are brought in. Recent examples include General Electric, Modine, and Lumen Technologies, with Lumen CEO Kate Johnson exemplifying the courage and growth mindset required for successful transformation. The fund has deepened its involvement through hands-on experience with local company transformations, enabling better evaluation of public companies and building trust with leadership teams. Five new holdings identified in early-stage transformation include Azenta, International Paper, Baxter, HNI Corp, and Enovis. The manager believes this approach allows the fund to build ownership in future standout companies before broader market recognition, with Lumen remaining in early recovery stages with significant improvement potential ahead. The portfolio reflects a commitment to continuous learning and the Kaizen philosophy.
The Tarkio Fund invests in companies undergoing cultural transformations toward Lean management practices, targeting struggling businesses at compelling valuations at the moment proven transformational leaders are brought in to drive employee empowerment, cross-functional collaboration, and continuous improvement.
The fund expects continued compounding from its Lean-focused portfolio as cultural transformations progress. Lumen Technologies is believed to remain in the early stages of recovery with the steepest part of its improvement curve still ahead. The manager anticipates building ownership in future standout companies before broader market recognition as momentum builds within transforming organizations.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 30 2026 | 2026 Q2 | AZTA, BAX, ENOV, GE, HNI, IP, LUMN, MOD | Cultural Transformation, Leadership, Lean Management, Quality, small cap, turnaround, value | - | Tarkio Fund targets companies undergoing Lean cultural transformations at compelling valuations, focusing on struggling businesses when proven transformational leaders are brought in. Recent additions include General Electric, Modine, and Lumen Technologies, with Lumen's Kate Johnson exemplifying required leadership courage. The fund's hands-on transformation experience enables earlier identification of turnarounds before broader market recognition, with five new early-stage holdings added. |
| Nov 30 2025 | 2025 Q3 | DHR | Compounding, Culture, long-term, management, Quality | - | Tarkio Fund pursues long-term compounding by investing in companies with superior cultures that unleash human potential, following Danaher Business System principles. The team has spent six years learning through factory visits and cultural transformation work, repositioning toward best-in-class cultures or companies on steep improvement curves not yet appreciated by markets. |
| Jun 30 2025 | 2025 Q2 | - | inflation, large cap, long-term, Quality, US, value | - | Front Street maintains a 37-year philosophy of owning the S&P 500 or 30 best-managed US companies selected by quality criteria. Anticipating tariff-driven inflation and higher rates, they hold short-term Treasuries, avoid duration risk, and believe economic dislocations favor their quality-focused approach for long-term wealth creation. |
| Mar 31 2025 | 2025 Q1 | BRK-A | Business Ownership, Employee Empowerment, long-term, Quality, value | - | Front Street/Tarkio advocates ignoring unpredictable macro events and focusing exclusively on knowable business fundamentals. Their core strategy involves investing in companies with strong employee empowerment cultures, believing this approach reliably compounds capital while creating societal benefit. Drawing from Graham and Buffett's philosophies, they maintain disciplined focus on business ownership rather than market speculation, expressing unprecedented optimism about future prospects after decades of refinement. |
| Dec 31 2024 | 2024 Q4 | - | AI, international, Multi-Asset, risk management, Tactical, Trade Policy, volatility | - | Horizon's Risk Assist algorithm successfully navigated Q2 2025's extreme volatility, de-risking during April's tariff-induced selloff before reinvesting in the subsequent recovery. The firm tactically reduced AI and small-cap exposures while favoring international markets and dividend growth, then selectively re-engaged growth themes as conditions improved. All models finished fully invested. |
| Sep 30 2024 | 2024 Q3 | AMG, CHTR, DOCN, FLEX, GOOGL, KMX, LOPE, NFLX, NOMD, TGT, TMO | growth, multi-cap, Quality, small caps, value | - | City Different's Multi-Cap Core strategy lagged the S&P 500 in Q3 due to weakness in emerging businesses and mid-caps, though remains ahead year-to-date. The firm sold Digital Ocean and concentrated capital in higher conviction ideas. Their disciplined, life-cycle-based approach targets long-term value creation across market caps despite near-term underperformance. |
| Jun 30 2024 | 2024 Q2 | 1928.HK, 2282.HK, AIR.PA, ALD.AX, AZJ.AX, CNI.AX, COL.AX, CS1.AX, CXB.MC, EDV.AX, FCX, FDV.AX, GMEXICOB.MX, HSBA.L, LLOY.L, NEE, NEM, NST.AX, QUB.AX, TECK, WYNN | commodities, Copper, cyclicals, European Banks, gold, Macau, value | - | PM Capital's Global Companies Fund rose 10% in September, outperforming markets through disciplined exposure to undervalued cyclicals. Gold and copper holdings drove returns as commodity fundamentals improved, while European banks continued re-rating and Macau gaming recovered. The manager maintains contrarian positioning in value opportunities despite market recovery to all-time highs. |
| Mar 31 2024 | 2024 Q1 | 2282.HK, AIB.I, BIRG.I, CABK.MC, CGF.AX, CSTCF, DGE.L, EDV.AX, FCX, FDV.AX, HEIA.AS, INGA.AS, LLOY.L, NEM, RI.PA, SAN.PA, SHEL.L, SIE.DE, SPEC.L, TECK, WYNN | commodities, Copper, European Banks, gaming, gold, Onshoring, tariffs | - | PM Capital delivered solid quarterly performance led by European banks and commodities holdings. The fund targets undervalued companies leveraged to global themes including European bank recovery, commodity supply constraints, and US-China decoupling trends. Key contributors included AIB Group, Newmont, and gaming positions, while beverage holdings lagged. The manager maintains conviction in long-term themes requiring patient capital. |
| Dec 31 2023 | 2023 Q4 | - | Bubble, Concentration, Fed policy, technology, valuation | - | Peak Asset Management sees widespread AI bubble fears as potentially contrarian evidence against an actual bubble. Despite S&P 500 gains of 14.83% year-to-date and elevated valuations at 22.5x forward earnings, the firm focuses on risk management rather than market timing, seeking opportunities in underperforming stocks while navigating increased market concentration in technology sectors. |
| Sep 30 2023 | 2023 Q3 | BRK-B, EMR, PG | AI, Data centers, dividends, uncertainty, value | - | Peak Asset Management navigates elevated market valuations in Q2 2025 with disciplined value approach. Despite 6% S&P gains and political uncertainty, quality dividend-paying stocks remain core focus. Current 24x P/E ratios on solid businesses like Procter & Gamble create few opportunities. AI investment and policy certainty support markets, but manager emphasizes patience and discipline. |
| Jun 30 2023 | 2023 Q2 | - | tariffs, Trade Policy, uncertainty, US, volatility | - | Peak Asset Management navigated Q1 2025's trade policy-driven volatility by maintaining disciplined asset allocation principles. Despite tariff uncertainty causing market swings from all-time highs to negative returns, the firm focuses on matching client allocations with cash flow needs across time horizons, emphasizing conviction during turbulent periods while acknowledging the challenging environment ahead. |
| Mar 31 2023 | 2023 Q1 | AJG, AMD, BA, CR, NVDA, ORCL, TTAN, TYL | aerospace, AI, diversification, healthcare, software, technology, valuation |
ACR AJG TYL TTAN |
Manager maintains AI exposure while emphasizing diversification as market concentration reaches dangerous levels with eight stocks representing 38% of S&P 500. Finding opportunities in oversold software and aerospace sectors through positions in Tyler Technologies, ServiceTitan, and Crane. Cautious but opportunistic approach given elevated 23x forward valuations and economic uncertainty. |
| Dec 30 2022 | 2022 Q4 | - | - | - | |
| Sep 30 2022 | 2022 Q3 | - | - | - | |
| Mar 31 2022 | 2022 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
QualityThe fund focuses on identifying companies undergoing cultural transformations toward Lean management practices, emphasizing employee empowerment, cross-functional collaboration, and continuous improvement. The manager has deepened involvement in these transformations, gaining firsthand experience that enables better evaluation of public companies at the earliest stages of change. This approach allows the fund to acquire ownership in future standout companies before broader market recognition. |
Lean Culture Transformation Leadership Empowerment |
ValueThe fund targets struggling companies at compelling valuations at the very moment transformation begins, often when proven Lean leaders are brought in. Recent examples include General Electric, Modine, and Lumen Technologies. The strategy has evolved from waiting for proven Lean companies at attractive prices to identifying turnarounds earlier in the cycle, capturing more upside potential. |
Turnaround Valuation Recovery Mispriced | |
| 2025 Q3 |
QualityThe fund focuses on identifying companies with best-in-class cultures that unleash human potential through criteria including humility, integrity, trust, long-term focus, purpose, teamwork, employee empowerment, and disciplined capital allocation. They are repositioning toward companies on steep cultural improvement curves not yet appreciated by other investors. |
Culture Management Long-term Improvement Human Capital |
| 2025 Q2 |
QualityThe firm focuses on identifying the best-managed companies according to specific criteria including humility, integrity, trust, long-term focus, purpose and passion, teamwork, employee empowerment, and disciplined capital allocation. These criteria have been their north star for over 38 years, with their understanding and refinement of the process compounding for decades. |
Management Leadership Corporate Culture Capital Allocation Long-term |
InflationThe manager explicitly states that tariffs will mean higher prices and normally lead to higher interest rates. They anticipate one possible outcome being an inflationary environment and declining bond prices due to higher interest rates, which influences their positioning in short-term Treasury Bills rather than extending maturities. |
Tariffs Interest Rates Bond Prices Treasury Bills Pricing | |
| 2025 Q1 |
QualityThe fund focuses on identifying and partnering with companies that create fulfilling, empowering, and collaborative work environments for employees. They believe supporting great employee empowerment companies is their most reliable way to compound capital at meaningful rates over long periods while doing good for society. |
Employee Empowerment Workplace Culture Human Potential Collaborative Environments |
| 2024 Q4 |
AIThe strategy made tactical adjustments around AI exposures during the quarter, initially reducing higher beta AI stocks in April during market volatility, then selectively increasing exposure to AI theme areas like software and communication services as market sentiment improved. |
Software Semiconductors Technology |
Trade PolicyMuch larger-than-expected tariffs announced on April 2 caused extreme market volatility and investor concerns about an anticipated recession. This policy shock drove significant market movements and portfolio adjustments early in the quarter. |
Tariffs Recession Policy | |
VolatilityThe quarter was characterized by extreme market volatility similar to Covid-19 and Global Financial Crisis experiences, with sharp drawdowns followed by equally steep recoveries. Risk metrics like VIX and MOVE declined over the quarter despite initial spikes. |
VIX MOVE Risk | |
| 2024 Q2 |
CopperPortfolio heavily weighted towards copper producers including Teck Resources, Freeport-McMoRan and Grupo Mexico. Copper prices rose 5% in September following major accident at Freeport's Grasberg mine, shifting market expectations from surplus to deficit heading into 2026. Several high-profile supply issues this year have supported copper fundamentals. |
Copper Mining Supply Deficit Grasberg |
GoldGold positions benefited from 17% rise in gold price to all-time high of US$3,873. Newmont gained 45% over the period while Northern Star rallied 26% since purchase. Despite gold trading at record levels, investor ownership of gold equities remains low with valuations still attractive and capital returns competitive. |
Gold Miners Newmont Northern Star Valuations | |
European BanksEuropean bank positions delivered strong results with steeper yield curve and growing confidence in infrastructure and defence spending driving economic activity. Caixabank rose 22% yet still trades below 11 times earnings, with plans for €12bn of shareholder returns over 2025-27 equivalent to roughly 20% of market capitalisation. |
Banks Europe Caixabank Yield Curve Returns | |
MacauImproved visitation in Macau supported portfolio returns with Wynn Resorts, Sands China and MGM China all up more than 30% including dividends. Industry-wide entertainment and leisure revenue growth has accelerated through the year, driving renewed investor optimism after period of weak sentiment earlier in 2025. |
Macau Gaming Wynn Sands Recovery | |
| 2024 Q1 |
European UnionEuropean banks are significantly undervalued relative to US and Australian peers. Rising infrastructure and defence spending in Europe will stimulate industrial activity and credit demand. A reviving European economy could create jobs and boost anaemic credit growth, aiding European banks. |
Banks Infrastructure Defense Valuation Credit |
CopperUnderinvestment in resource projects will constrain commodity supply, supporting higher metal prices. President Trump is using commodities as bargaining chips for trade concessions. Copper is a key commodity in electric vehicles and the transition to renewables. |
Mining Supply Electric Vehicles Trade Policy | |
GoldGold rallied amid increased geopolitical tensions and US tariff-policy fallout. Physical gold prices remain elevated reflecting ongoing demand from central banks and investors seeking stability amid persistent economic uncertainty. |
Safe Haven Central Banks Geopolitical Uncertainty | |
OnshoringThe COVID-19 pandemic encouraged multinationals to increase manufacturing at home to reduce global supply chain risks. President Trump wants more manufacturing to return to the US and his use of tariffs could accelerate global reshoring. |
Manufacturing Supply Chain Tariffs Trade Policy | |
GamingGaming positions provided positive contributions with MGM China rising 23% and Wynn Resorts gaining 12%. The sector rebounded in June driven by improved Macau gaming data and tourism recovery despite earlier pressure from US tariff concerns. |
Macau Tourism Recovery China | |
| 2023 Q4 |
AIThe letter discusses the AI bubble fears that have emerged, with Google Search index for AI bubble rising from zero to 100 in mid-September to October. The manager views the widespread bubble concerns as contrarian evidence that the market may not actually be in a bubble. |
Bubble Technology Valuation |
| 2023 Q3 |
DividendsManager emphasizes the importance of dividend-paying stocks, noting that over the last 50 years, dividend payers in the S&P 500 returned 9.2% annually versus 4.3% for non-payers. Companies that pay dividends demonstrate consistent profitability and judicious cash management. |
Dividend Yield Cash Management Profitability |
AIArtificial intelligence is identified as one of the key drivers supporting current market valuations. The manager notes huge amounts of corporate investment in building data centers and research and development in AI as a countervailing force keeping markets fully valued. |
Data Centers Corporate Investment R&D | |
| 2023 Q2 |
Trade PolicyThe Trump administration implemented tariffs on Canada, Mexico and China on February 1st as pressure to stop Fentanyl flow. Liberation Day on April 2nd brought increased tariff size and breadth, spoking investors and causing a three-day mini-crash. A ninety-day pause on reciprocal tariffs for seventy-plus countries was announced April 9th. |
Tariffs Trade War China Liberation Day Fentanyl |
VolatilityThe manager expected significant volatility in 2025 after two consecutive 20%+ years. The S&P 500 hit all-time highs in February then declined into negative territory. Double-digit pullbacks are historically regular occurrences even in bull markets, and current valuation metrics are at historically demanding levels. |
Market Swings Pullbacks Valuation Bull Market Uncertainty | |
| 2023 Q1 |
AIAI capital expenditure boom continues driving market concentration with eight companies representing 38% of S&P 500. Manager tracks economic viability risks and energy infrastructure bottlenecks while maintaining exposure to the theme despite bubble concerns. |
Data Centers Semiconductors Cloud Nvidia Infrastructure |
SoftwareManager sees opportunity in software sector where sentiment has turned overly pessimistic amid AI displacement fears. Added to Tyler Technologies and initiated ServiceTitan position, focusing on mission-critical applications with high switching costs. |
SaaS Enterprise Software Vertical Software Government IT Automation | |
AerospaceBoeing increasing production schedule with massive aircraft backlog for both Boeing and Airbus. Added to Crane position to benefit from long-term secular growth in aerospace division driven by commercial aviation recovery. |
Commercial Aviation Defense Industrial Aerospace Components Manufacturing |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 1, 2025 | Fund Letters | Tarkio Fund | ACR | Crane Company | Industrials | Industrial Machinery | Bull | NYSE | Aerospace, Airbus, aircraft production, Boeing, Cyclical Recovery, Industrial technology, secular growth | Login |
| Oct 1, 2025 | Fund Letters | Tarkio Fund | AJG | Arthur J. Gallagher & Co. | Financials | Insurance Brokers | Bull | NYSE | acquisition, Best-in-class, consolidation, earnings growth, Insurance Broker, market share, Mid-market | Login |
| Oct 1, 2025 | Fund Letters | Tarkio Fund | TYL | Tyler Technologies Inc. | Information Technology | Application Software | Bull | NYSE | defensive, Fragmented Market, government software, high switching costs, Mission-Critical, Municipalities, recurring revenue | Login |
| Oct 1, 2025 | Fund Letters | Tarkio Fund | TTAN | ServiceTitan Inc. | Information Technology | Application Software | Bull | NASDAQ | AI integration, Automation, Digitization, Fast-growing, first-mover advantage, Modernization, productivity, Trades Industry | Login |
| TICKER | COMMENTARY |
|---|---|
| GE | Recent examples of companies selected under this evolving framework include General Electric, Modine, and Lumen Technologies. |
| LUMN | Recent examples of companies selected under this evolving framework include General Electric, Modine, and Lumen Technologies. While Lumen has already been a meaningful contributor, we believe it remains in the early stages of its recovery, with the steepest part of its improvement curve still ahead. Lumen's CEO, Kate Johnson, exemplifies the type of leadership required in these environments. As we've gone deeper into Lean, we've found it essential to return periodically to foundational principles. Kate captures this succinctly: 'We want to build a culture of Learn-it-Alls, not Know-it-Alls.' In our observation, two defining characteristics of successful transformation leaders are courage and a growth mindset, and there are few more courageous leaders than Kate. |
| MOD | Recent examples of companies selected under this evolving framework include General Electric, Modine, and Lumen Technologies. |
| AZTA | In our last letter, we referenced five new holdings identified in the earliest stages of this type of transformation: Azenta, International Paper, Baxter, HNI Corp, and Enovis. |
| IP | In our last letter, we referenced five new holdings identified in the earliest stages of this type of transformation: Azenta, International Paper, Baxter, HNI Corp, and Enovis. |
| BAX | In our last letter, we referenced five new holdings identified in the earliest stages of this type of transformation: Azenta, International Paper, Baxter, HNI Corp, and Enovis. |
| HNI | In our last letter, we referenced five new holdings identified in the earliest stages of this type of transformation: Azenta, International Paper, Baxter, HNI Corp, and Enovis. |
| ENOV | In our last letter, we referenced five new holdings identified in the earliest stages of this type of transformation: Azenta, International Paper, Baxter, HNI Corp, and Enovis. |
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