The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Dr Mathias Saggau's TGV Partners Fund delivered a 6.88% return in H1 2024, slightly underperforming the DAX's 8.86% gain. The concentrated 15-stock portfolio focuses on small and mid-cap companies outside major indices, with market caps ranging from 60 million to 30 billion euros. Saggau highlights a structural market risk from increasing ETF-driven concentration, where just three companies now represent 20% of the S&P 500, creating valuation disparities between mega-caps and smaller companies. The fund's investment philosophy centers on four criteria: reasonable business models, competitive advantages, quality management, and attractive pricing. Recent additions include Midwich Group, an audio-visual distributor trading at less than 10x earnings despite strong fundamentals, and FILA Holdings, a Korean holding company trading below the value of its Acushnet stake alone. The fund faces a management transition as founder Norman Rentrop plans to transfer operations to a new capital management company by year-end, though investment strategy and portfolio composition will remain unchanged. Despite short-term volatility in smaller companies, the concentrated approach has generated 9.3% annualized returns since inception.
The fund employs a concentrated value approach targeting excellent small and mid-cap companies with sustainable competitive advantages, quality management, and attractive valuations, deliberately investing outside major indices to capitalize on market inefficiencies.
The manager expects continued significant deviations from index performance due to the fund's strategy of investing beyond major indices. The structural changes in markets present both challenges and opportunities for the concentrated small-cap approach.
As of Jun 30, 2024
The fund operated as a German umbrella investment company managing multiple sub-funds through specialized sub-advisors. Jens Große-Allermann and Waldemar Lokotsch served as board members of the parent company, while individual sub-funds were managed by experienced professionals including Laurenz Malte Nienaber of LMN Capital (formerly an Investment Professional at TGV from 2014-2019) and Dr. Mathias Saggau of MSA Capital. The company was incorporated under German regulations (KAGB) and registered in Bonn with HRB 16143. In December 2024, the company announced the termination of all investment fund operations and entered liquidation proceedings, distributing remaining assets to investors. The fund structure allowed for specialized management of different investment strategies while maintaining a unified value investing philosophy across all sub-funds.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
High conviction evidenced by concentrated 15-stock portfolio with detailed analysis of individual holdings. Manager provides specific valuation metrics (Midwich at less than 10x earnings), extensive company research including site visits, and clear investment criteria. The detailed case studies for Midwich and FILA Holdings demonstrate strong conviction in specific names.
Growth Outlook
The manager expresses cautious concern about structural market risks from ETF concentration and ambitious valuations of large companies, while acknowledging uncertainty about long-term consequences. The tone is analytical rather than alarmist, but clearly identifies systemic issues.
Risk Appetite
The fund maintains its concentrated 15-stock approach and has been actively adding new positions like Midwich Group and FILA Holdings. The manager shows willingness to invest in smaller, more volatile companies despite acknowledging their risks.
Capital Deployment
Moderate deployment activity with recent additions of Midwich Group and FILA Holdings, plus the exchange of Software Circle for Chapters Group AG. However, the fund also sold its entire System1 position, suggesting more rotation than net deployment. No cash level changes mentioned.
Forward Guidance
The manager provides no clear directional bias for future deployment. While maintaining current strategy, there's no indication of plans to increase or decrease risk appetite or make significant portfolio changes beyond the management transition.
Language Signal
Language is balanced with some positive terms around opportunities in undervalued companies, but this is offset by risk-focused discussion of market structure and valuation concerns. Overall neutral with slight positive bias toward specific holdings.
Perceived Risk
Manager identifies specific structural risks from ETF concentration and discusses extreme volatility in smaller companies using System1 as an example. Acknowledges uncertainty about long-term market consequences and notes ambitious valuations of large companies, but doesn't express systemic alarm.
Opportunity Density
Manager sees selective opportunities in undervalued smaller companies, evidenced by recent additions of Midwich and FILA Holdings. However, emphasizes the difficulty of finding companies meeting all four investment criteria, suggesting opportunities require careful selection rather than being abundant.
Time Horizon
Strong emphasis on long-term investing with most positions held for many years. Manager discusses multi-year business development stories and focuses on sustainable competitive advantages. The fund name itself emphasizes long-term investing, and the approach prioritizes business fundamentals over near-term catalysts.
Top Conviction Themes
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