TMR Partners Long Only

Investor Summary

Theodore Rosenthal founded TMR Capital in 2019 after graduating from Johns Hopkins University, having started investing at age 12 during the 2008 financial crisis. He serves as Chief Investment Officer and manages over $2 billion in capital across hedge fund and family office advisory services. Rosenthal also serves as President of Digital Assets at FG Nexus, demonstrating expertise across traditional and digital assets. The firm has achieved over 20% compounded returns before fees since inception with no down years.

Fund Strategy

TMR Capital's investment approach emphasizes concentrated value investing, margin of safety, long-term orientation, special situations, and dedication to short selling. The firm focuses on SMID value-oriented special situations with long-term fundamental analysis aimed at identifying inflection points in companies where the future is likely to be very different than the past. The strategy centers on time arbitrage and buying compounders at reasonable valuations while maintaining an active short book for risk management and additional capital deployment.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
-	-	25.3%

Executive Summary

TMR Capital operates a long/short equity strategy targeting Technology investments and SMID cap value-oriented special situations. The fund believes the current market environment is ideal for their approach, with the cheapest quartile of stocks at decade lows while expensive stocks trade at elevated multiples. This dispersion stems from capital flows into passive investing and increased dominance of shorter-term quantitative strategies. The fund's differentiated approach focuses on deep fundamental research in the neglected SMID cap space, where they can more easily influence market perception. Key holdings include Zenvia, which is refocusing around its AI-powered Customer Cloud platform with expected 30% revenue growth in 2025, and WM Technology, a dominant cannabis marketplace trading at attractive valuations while facing a lowball acquisition attempt. The fund expects increased M&A activity in 2025 to benefit their special situations focus. Their uncorrelated return stream and flexible global mandate position them to generate strong absolute returns regardless of broader market conditions, with particular optimism around Technology dispersion as the AI cycle progresses.

Forward Outlook

The fund feels confident in their ability to continue to generate strong absolute returns regardless of what happens to the markets. They expect M&A activity to pick up in 2025, which should benefit their SMID cap special situations focus. The current market environment with extreme valuation dispersion is viewed as ideal for their long/short strategy.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Dec 31 2024	2024 Q4	CRM, HUBS, MAPS, NOW, TWLO, ZENV	AI, Long/Short, M&A, SMID Cap, special situations, technology, value	ZENV MAPS	TMR Capital runs a long/short strategy targeting Technology and SMID cap special situations, capitalizing on extreme market valuation dispersions. Key positions include AI-powered Zenvia expecting 30% growth and undervalued cannabis platform WM Technology facing activist situation. Fund expects M&A pickup in 2025 to benefit their neglected small-cap focus while maintaining uncorrelated returns.
Sep 30 2024	2024 Q3	CLS.TO	AI, Capex, Data centers, growth, Hyperscalers, technology	-	TMR Partners is capitalizing on the AI infrastructure boom through Celestica, a key hyperscaler supplier trading at attractive 13x P/E despite 68% revenue exposure to high-growth data center markets. With tech giants spending $229B annually on AI capex and accelerated computing at only 2.7% penetration, the manager projects 70% upside as margins expand and growth accelerates.
Jun 30 2024	2024 Q2	004800.KS, 005930.KS, 090430.KS, 329180.KS, 4527.T, 9022.T, CDI.PA, J36.SI, NWSA, VIV.PA	Discounts, Governance, Korea, Media, Unlisted Assets, value	NWSA	AVI Global Trust focuses on deep value opportunities in companies trading below net asset value. Korean exposure at 9.5% of NAV has generated strong returns amid governance reforms. News Corp position centers on undervalued unlisted assets, particularly Dow Jones. Recent Murdoch family trust resolution removes impediment to value realization. Compelling outlook for fundamental investors in undervalued markets.
Mar 31 2024	2024 Q1	BRK-B	AI, Caribbean, diversification, emerging markets, global, technology, value	-	Fortress delivered strong Q3 returns through global diversification, investing in quality companies at reasonable valuations. While AI drove expensive U.S. tech higher, emerging markets led performance with Chinese stocks benefiting from policy support. The manager reduced Asian exposure, maintained global diversification, and sees continued value opportunities despite elevated tech valuations requiring selectivity.
Dec 31 2023	2023 Q4	ADYEN.AS, BA, GE, HWM, RHM.DE, ROK, RR.L	aerospace, Automation, defense, Europe, industrials, Onshoring, technology, Trade Policy	AABA HWM DALN\|FND\|ROKU\|WOSG LN 0GEG LN	WestEnd outperformed through concentrated bets on aerospace and industrial onshoring beneficiaries. Following tariff de-escalation, the fund redeployed cash into Boeing's turnaround story and complementary suppliers like Howmet, Rockwell, and GE Aerospace. Rising defense spending and commercial aviation recovery drive the thesis, with new fiscal stimulus providing additional manufacturing incentives.
Sep 30 2023	2023 Q3	-	Consumer Sentiment, Economic Data, Fed policy, inflation, Market Volatility, Trade Policy	-	Regency Wealth sees market volatility from tariff announcements as disconnected from resilient economic fundamentals. While consumer sentiment surveys show pessimism with inflation expectations above 7%, actual PCE inflation is 2.1% and corporate earnings growth remains strong at 13%. The firm maintains moderate optimism despite reducing Fed rate cut expectations from 2-3 to one cut in 2025.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Dec 31 2024

2024 Q4

CRM, HUBS, MAPS, NOW, TWLO, ZENV

AI, Long/Short, M&A, SMID Cap, special situations, technology, value

ZENV
MAPS

TMR Capital runs a long/short strategy targeting Technology and SMID cap special situations, capitalizing on extreme market valuation dispersions. Key positions include AI-powered Zenvia expecting 30% growth and undervalued cannabis platform WM Technology facing activist situation. Fund expects M&A pickup in 2025 to benefit their neglected small-cap focus while maintaining uncorrelated returns.

Sep 30 2024

2024 Q3

CLS.TO

AI, Capex, Data centers, growth, Hyperscalers, technology

TMR Partners is capitalizing on the AI infrastructure boom through Celestica, a key hyperscaler supplier trading at attractive 13x P/E despite 68% revenue exposure to high-growth data center markets. With tech giants spending $229B annually on AI capex and accelerated computing at only 2.7% penetration, the manager projects 70% upside as margins expand and growth accelerates.

Jun 30 2024

2024 Q2

004800.KS, 005930.KS, 090430.KS, 329180.KS, 4527.T, 9022.T, CDI.PA, J36.SI, NWSA, VIV.PA

Discounts, Governance, Korea, Media, Unlisted Assets, value

NWSA

AVI Global Trust focuses on deep value opportunities in companies trading below net asset value. Korean exposure at 9.5% of NAV has generated strong returns amid governance reforms. News Corp position centers on undervalued unlisted assets, particularly Dow Jones. Recent Murdoch family trust resolution removes impediment to value realization. Compelling outlook for fundamental investors in undervalued markets.

Mar 31 2024

2024 Q1

BRK-B

AI, Caribbean, diversification, emerging markets, global, technology, value

Fortress delivered strong Q3 returns through global diversification, investing in quality companies at reasonable valuations. While AI drove expensive U.S. tech higher, emerging markets led performance with Chinese stocks benefiting from policy support. The manager reduced Asian exposure, maintained global diversification, and sees continued value opportunities despite elevated tech valuations requiring selectivity.

Dec 31 2023

2023 Q4

ADYEN.AS, BA, GE, HWM, RHM.DE, ROK, RR.L

aerospace, Automation, defense, Europe, industrials, Onshoring, technology, Trade Policy

AABA
HWM
DALN|FND|ROKU|WOSG LN
0GEG LN

WestEnd outperformed through concentrated bets on aerospace and industrial onshoring beneficiaries. Following tariff de-escalation, the fund redeployed cash into Boeing's turnaround story and complementary suppliers like Howmet, Rockwell, and GE Aerospace. Rising defense spending and commercial aviation recovery drive the thesis, with new fiscal stimulus providing additional manufacturing incentives.

Sep 30 2023

2023 Q3

Consumer Sentiment, Economic Data, Fed policy, inflation, Market Volatility, Trade Policy

Regency Wealth sees market volatility from tariff announcements as disconnected from resilient economic fundamentals. While consumer sentiment surveys show pessimism with inflation expectations above 7%, actual PCE inflation is 2.1% and corporate earnings growth remains strong at 13%. The firm maintains moderate optimism despite reducing Fed rate cut expectations from 2-3 to one cut in 2025.

QUARTER	THEMES	TAGS
2024 Q4	AI The fund expects to see more dispersion in Technology as the AI cycle progresses, which should benefit their ability to pick winners and losers. Zenvia's Customer Cloud platform is powered by AI-driven solutions that minimize reliance on human agents and enhance efficiency for clients.	AI-driven Technology Automation Efficiency Software
	Small Caps The fund focuses on SMID cap value-oriented special situations, viewing this as an increasingly neglected area of the market. They believe it's easier to influence market perception in microcaps and small caps, positioning them well for opportunities.	SMID Microcaps Neglected Value Special Situations
2024 Q3	AI The letter extensively discusses AI as a massive investment cycle driven by hyperscaler competition. Tech giants are demonstrating unwavering commitment to AI investments, viewing it as crucial for long-term growth despite uncertain short-term returns. The combined capital expenditures of Microsoft, Alphabet, and Meta grew by 60% year-over-year, with annualized CapEx for big tech increasing from $138B to $229B.	Hyperscalers CapEx Infrastructure Competition Investment
	Data Centers Data center infrastructure is experiencing unprecedented demand driven by AI investments. The letter describes this as one of the biggest data center refreshes in two decades, with accelerated computing having only 2.7% penetration rate. Hyperscalers are making massive investments in data center capabilities to support AI workloads and maintain competitive positioning.	Infrastructure Refresh Hyperscalers Investment Growth
2024 Q2	South Korea Building exposure to Korea due to ongoing corporate governance reform agenda and rich array of deeply undervalued companies. Korean names have contributed +1.1% to NAV with weighted average total return of +25%, driven by strong performances at HD Hyundai (+54%), Hyosung Corporation (+71%) and Samsung C&T (+28%). 68% of the KOSPI index still trading below book value and 61% without any sell-side coverage.	Corporate Governance Value Discount Reform
	Value Focus on companies whose share prices stand at a discount to estimated underlying net asset value. News Corp trades at deep discount with REA stake accounting for 75% of market cap. Amorepacific Holdings now trades on its widest ever discount (52%). Net of REA stake, implied value of News Corp stub assets stands at $3.3bn, or approximately 4.0x EBITDA.	Discount NAV Undervalued Unlisted Assets
	Media Significant position in News Corp with focus on unlisted stub assets, most notably Dow Jones, and potential for management to unlock value from REA Group stake. Dow Jones revenues grew +7% and EBITDA +13% with Professional Information Business performing strongly (+10%). Manager believes Dow Jones alone is worth ~3x the entire stub.	Publishing Digital Information Services
2024 Q1	AI Artificial intelligence remained the dominant theme supporting global stocks this quarter. AI buildout brought excitement and higher valuations in an already expensive part of the equity market. Technology developments have played an enormous role in markets, fuelling momentum in shares of companies linked to AI.	Technology Valuations Momentum Growth Innovation
	Emerging markets Emerging markets stocks posted the strongest returns this quarter. Constructive trade talks, good valuations and the government's shift to supporting private enterprise lifted Chinese stocks, adding to returns in an already strong year. The Fund's core allocation to emerging equities via the Fortress Emerging Markets Fund returned 15%.	China Valuations Trade Government Policy Returns
	Value The fund favors investing in shares of high-quality, profitable companies at reasonable valuations. Valuations matter because they are the launching point for future returns and allow room for error. Years of weakness in some parts of the Caribbean have potentially set the stage for good long-term returns among profitable companies that now trade at very attractive valuations.	Quality Profitability Reasonable Pricing Long-term Caribbean
2023 Q4	Onshoring The letter emphasizes the US government's increasing focus on bringing manufacturing and production home due to geopolitical uncertainties and trade issues. This trend is driving major capital investment across aerospace and defense industries, with companies prioritizing supply chain visibility and resilience.	Manufacturing Supply Chain Domestic Production Reshoring Industrial Policy
	Defense Spending Global defense spending rose to $2.7 trillion in 2024 (+9.4%) and is expected to continue rising. The US Department of Defense's 2025 budget request totals nearly $850 billion, with meaningful allocations aimed at strengthening industrial capabilities in areas like unmanned systems, hypersonics, and solid rocket motors.	Military Budget Aerospace Defense Contractors Government Spending
	Aerospace The rebound in global air travel (up nearly 10.6% in 2024) and structural supply shortages are fueling commercial aerospace activity. Aircraft manufacturers and suppliers are racing to meet backlogs while investing heavily in domestic production capacity, with companies like GE Aerospace and Howmet benefiting from surging demand.	Aviation Commercial Aircraft Air Travel Supply Chain Manufacturing
	Trade Policy The letter discusses the de-escalation of trade hostilities between the US and China, with tariffs pulled back from 100%+ to more sensible levels (30% on Chinese exports and 10% on US exports). Markets have moved past worst-case tariff scenarios, accepting higher but manageable effective tariff rates.	Tariffs China Trade War Negotiations Economic Policy
	Automation Companies like Rockwell Automation are benefiting from reshoring trends and broader adoption of automation and AI in manufacturing. The focus is on faster, smarter, and more reliable production systems that help make domestic manufacturing more efficient and cost-effective.	AI Manufacturing Industrial IoT Efficiency Technology
2023 Q3	Trade Policy Trump announced reciprocal tariffs with a 90-day pause for most countries while maintaining tariffs on Chinese imports. The tariff announcement caused significant market volatility with the S&P 500 dropping over 12% in four trading days. The managers are monitoring the unclear economic implications of trade policy as the Fed assesses potential rate cuts.	Tariffs China Trade War Volatility Fed Policy
	Inflation Consumer inflation expectations in surveys hover north of 7% while actual PCE inflation printed at 2.1% year-over-year, one of the lowest readings in years and in line with the Fed's 2% target. The managers highlight the disconnect between survey expectations and actual hard data, noting that producer prices are rising slower than consumer prices.	PCE Consumer Expectations Fed Target Producer Prices Hard Data

QUARTER

THEMES

AI

The fund expects to see more dispersion in Technology as the AI cycle progresses, which should benefit their ability to pick winners and losers. Zenvia's Customer Cloud platform is powered by AI-driven solutions that minimize reliance on human agents and enhance efficiency for clients.

AI-driven Technology Automation Efficiency Software

Small Caps

The fund focuses on SMID cap value-oriented special situations, viewing this as an increasingly neglected area of the market. They believe it's easier to influence market perception in microcaps and small caps, positioning them well for opportunities.

SMID Microcaps Neglected Value Special Situations

2024 Q3

AI

The letter extensively discusses AI as a massive investment cycle driven by hyperscaler competition. Tech giants are demonstrating unwavering commitment to AI investments, viewing it as crucial for long-term growth despite uncertain short-term returns. The combined capital expenditures of Microsoft, Alphabet, and Meta grew by 60% year-over-year, with annualized CapEx for big tech increasing from $138B to $229B.

Hyperscalers CapEx Infrastructure Competition Investment

Data Centers

Data center infrastructure is experiencing unprecedented demand driven by AI investments. The letter describes this as one of the biggest data center refreshes in two decades, with accelerated computing having only 2.7% penetration rate. Hyperscalers are making massive investments in data center capabilities to support AI workloads and maintain competitive positioning.

Infrastructure Refresh Hyperscalers Investment Growth

2024 Q2

South Korea

Building exposure to Korea due to ongoing corporate governance reform agenda and rich array of deeply undervalued companies. Korean names have contributed +1.1% to NAV with weighted average total return of +25%, driven by strong performances at HD Hyundai (+54%), Hyosung Corporation (+71%) and Samsung C&T (+28%). 68% of the KOSPI index still trading below book value and 61% without any sell-side coverage.

Corporate Governance Value Discount Reform

Value

Focus on companies whose share prices stand at a discount to estimated underlying net asset value. News Corp trades at deep discount with REA stake accounting for 75% of market cap. Amorepacific Holdings now trades on its widest ever discount (52%). Net of REA stake, implied value of News Corp stub assets stands at $3.3bn, or approximately 4.0x EBITDA.

Discount NAV Undervalued Unlisted Assets

Media

Significant position in News Corp with focus on unlisted stub assets, most notably Dow Jones, and potential for management to unlock value from REA Group stake. Dow Jones revenues grew +7% and EBITDA +13% with Professional Information Business performing strongly (+10%). Manager believes Dow Jones alone is worth ~3x the entire stub.

Publishing Digital Information Services

2024 Q1

AI

Artificial intelligence remained the dominant theme supporting global stocks this quarter. AI buildout brought excitement and higher valuations in an already expensive part of the equity market. Technology developments have played an enormous role in markets, fuelling momentum in shares of companies linked to AI.

Technology Valuations Momentum Growth Innovation

Emerging markets

Emerging markets stocks posted the strongest returns this quarter. Constructive trade talks, good valuations and the government's shift to supporting private enterprise lifted Chinese stocks, adding to returns in an already strong year. The Fund's core allocation to emerging equities via the Fortress Emerging Markets Fund returned 15%.

China Valuations Trade Government Policy Returns

Value

The fund favors investing in shares of high-quality, profitable companies at reasonable valuations. Valuations matter because they are the launching point for future returns and allow room for error. Years of weakness in some parts of the Caribbean have potentially set the stage for good long-term returns among profitable companies that now trade at very attractive valuations.

Quality Profitability Reasonable Pricing Long-term Caribbean

2023 Q4

Onshoring

The letter emphasizes the US government's increasing focus on bringing manufacturing and production home due to geopolitical uncertainties and trade issues. This trend is driving major capital investment across aerospace and defense industries, with companies prioritizing supply chain visibility and resilience.

Manufacturing Supply Chain Domestic Production Reshoring Industrial Policy

Defense Spending

Global defense spending rose to $2.7 trillion in 2024 (+9.4%) and is expected to continue rising. The US Department of Defense's 2025 budget request totals nearly $850 billion, with meaningful allocations aimed at strengthening industrial capabilities in areas like unmanned systems, hypersonics, and solid rocket motors.

Military Budget Aerospace Defense Contractors Government Spending

Aerospace

The rebound in global air travel (up nearly 10.6% in 2024) and structural supply shortages are fueling commercial aerospace activity. Aircraft manufacturers and suppliers are racing to meet backlogs while investing heavily in domestic production capacity, with companies like GE Aerospace and Howmet benefiting from surging demand.

Aviation Commercial Aircraft Air Travel Supply Chain Manufacturing

Trade Policy

The letter discusses the de-escalation of trade hostilities between the US and China, with tariffs pulled back from 100%+ to more sensible levels (30% on Chinese exports and 10% on US exports). Markets have moved past worst-case tariff scenarios, accepting higher but manageable effective tariff rates.

Tariffs China Trade War Negotiations Economic Policy

Automation

Companies like Rockwell Automation are benefiting from reshoring trends and broader adoption of automation and AI in manufacturing. The focus is on faster, smarter, and more reliable production systems that help make domestic manufacturing more efficient and cost-effective.

AI Manufacturing Industrial IoT Efficiency Technology

2023 Q3

Trade Policy

Trump announced reciprocal tariffs with a 90-day pause for most countries while maintaining tariffs on Chinese imports. The tariff announcement caused significant market volatility with the S&P 500 dropping over 12% in four trading days. The managers are monitoring the unclear economic implications of trade policy as the Fed assesses potential rate cuts.

Tariffs China Trade War Volatility Fed Policy

Inflation

Consumer inflation expectations in surveys hover north of 7% while actual PCE inflation printed at 2.1% year-over-year, one of the lowest readings in years and in line with the Fed's 2% target. The managers highlight the disconnect between survey expectations and actual hard data, noting that producer prices are rising slower than consumer prices.

PCE Consumer Expectations Fed Target Producer Prices Hard Data

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Oct 31, 2025	Fund Letters	TMR Partners Long Only	NWSA	News Corp	Communication Services	Publishing	Bull	NASDAQ	Australia, discount to NAV, Dow Jones, Family Trust, information services, media, Professional Information, Publishing, REA Group, value unlock	Login
Jul 1, 2024	Fund Letters	TMR Partners Long Only	AABA	Boeing Company	Industrials	Aerospace & Defense	Bull	NYSE	Aerospace, China market, Commercial Aviation, Defense, manufacturing, Order Backlog, Reshoring, turnaround	Login
Jul 1, 2024	Fund Letters	TMR Partners Long Only	HWM	Howmet Aerospace Inc	Industrials	Aerospace & Defense	Bull	NYSE	advanced materials, Aerospace Supplier, Commercial Aviation, Defense, manufacturing, Precision Engineering, supply chain	Login
Jul 1, 2024	Fund Letters	TMR Partners Long Only	DALN\|FND\|ROKU\|WOSG LN	Rockwell Automation Inc	Industrials	Industrial Machinery	Bull	NYSE	Artificial Intelligence, Defense, Digital Twins, Industrial automation, manufacturing, Predictive Maintenance, Quality Growth, Reshoring	Login
Jul 1, 2024	Fund Letters	TMR Partners Long Only	0GEG LN	GE Aerospace	Industrials	Aerospace & Defense	Bull	NYSE	Aerospace Engines, Defense, innovation, Joint venture, market leader, MRO services, Predictive Maintenance, supply chain	Login
-	Fund Letters	TMR Partners Long Only	ZENV	Zenvia Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	AI-driven, Brazil, Cpaas, Customer Engagement, divestiture, Equity, SaaS, technology, turnaround, Volume-based pricing	Login
-	Fund Letters	TMR Partners Long Only	MAPS	WM Technology Inc.	Communication Services	Interactive Media & Services	Bull	NASDAQ	activist, Cannabis, Cash generative, Dominant platform, Equity, high margins, marketplace, network effects, Special Situation, undervalued	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Oct 31, 2025

Fund Letters

TMR Partners Long Only

NWSA

News Corp

Communication Services

Publishing

Bull

NASDAQ

Australia, discount to NAV, Dow Jones, Family Trust, information services, media, Professional Information, Publishing, REA Group, value unlock

Jul 1, 2024

Fund Letters

TMR Partners Long Only

AABA

Boeing Company

Industrials

Aerospace & Defense

Bull

NYSE

Aerospace, China market, Commercial Aviation, Defense, manufacturing, Order Backlog, Reshoring, turnaround

Jul 1, 2024

Fund Letters

TMR Partners Long Only

HWM

Howmet Aerospace Inc

Industrials

Aerospace & Defense

Bull

NYSE

advanced materials, Aerospace Supplier, Commercial Aviation, Defense, manufacturing, Precision Engineering, supply chain

Jul 1, 2024

Fund Letters

TMR Partners Long Only

DALN|FND|ROKU|WOSG LN

Rockwell Automation Inc

Industrials

Industrial Machinery

Bull

NYSE

Artificial Intelligence, Defense, Digital Twins, Industrial automation, manufacturing, Predictive Maintenance, Quality Growth, Reshoring

Jul 1, 2024

Fund Letters

TMR Partners Long Only

0GEG LN

GE Aerospace

Industrials

Aerospace & Defense

Bull

NYSE

Aerospace Engines, Defense, innovation, Joint venture, market leader, MRO services, Predictive Maintenance, supply chain

Fund Letters

TMR Partners Long Only

ZENV

Zenvia Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

AI-driven, Brazil, Cpaas, Customer Engagement, divestiture, Equity, SaaS, technology, turnaround, Volume-based pricing

Fund Letters

TMR Partners Long Only

MAPS

WM Technology Inc.

Communication Services

Interactive Media & Services

Bull

NASDAQ

activist, Cannabis, Cash generative, Dominant platform, Equity, high margins, marketplace, network effects, Special Situation, undervalued

TICKER	COMMENTARY
ZENV	Zenvia has announced a strategic refocus along with the potential for an opportunistic divestment of non-core assets to optimize their capital structure. Zenvia Customer Cloud (ZCC) was officially launched in October 2024 and will become Zenvia's core business moving forward. ZCC is powered by AI-driven solutions and robust data analytics and is designed to adapt similarly to business of all sizes and across diverse industries. Clients already using it report enhanced customer engagement, increased sales, and reduced costs. Zenvia's business will further shift to a volume-based pricing model, where clients pay based on the number of interactions they have with their clients and prospects rather than the traditional per-seat SaaS model. This approach is enabled by the extensive use of AI in their software, which minimizes the reliance of human agents, enhances efficiency for clients, and unlocks greater revenue generation potential with much less complexity. The ZCC customer base is a mix of existing clients who transitioned and new customers. ZCC is expected to grow revenue 30% in 2025 with 70% gross margins and positive EBITDA. Anything in the SaaS and CPaaS business that is not ZCC is counted as non-core and may be divested in the near future. We have encouraged Zenvia to pursue a sale/carve out as a way to force the market to rerate the stock should they sell part of their business at a valuation multiple closer to peers.
MAPS	The company is an online marketplace/classifieds business for cannabis - it's a picks & shovel play. $180M revenue, 95% gross margins, 17% EBITDA margins, FCF generative. $45M cash, no debt but they do have operating leases. They have become the dominant platform in the industry. Given the company's lead in traffic, active users, and retailers/brands on the platform, WM Technology benefits from strong network effects. Dispensaries have to be on the platform if they want to drive sales. They trade at 1x revenue and 6x EBITDA. They had no sell side analysts or investors on their latest earnings call. The co-founders are trying to acquire the company at 1.7, effectively stealing the company from shareholders. The stock currently trades at 1.3 per share. We sent a letter to the Board urging them to reject the low ball acquisition and instead pursue a novel capital allocation approach that can improve their balance sheet and instantly get them attention from the capital markets.
TWLO	Twilio, Zenvia's closest comparable in CPaaS, has seen its stock triple in the past three month and now trades at 3.4x NTM Revenue vs. Zenvia at 0.7x NTM Revenue.
CRM	SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.
NOW	SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.
HUBS	SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.

TICKER

COMMENTARY

ZENV

Zenvia has announced a strategic refocus along with the potential for an opportunistic divestment of non-core assets to optimize their capital structure. Zenvia Customer Cloud (ZCC) was officially launched in October 2024 and will become Zenvia's core business moving forward. ZCC is powered by AI-driven solutions and robust data analytics and is designed to adapt similarly to business of all sizes and across diverse industries. Clients already using it report enhanced customer engagement, increased sales, and reduced costs. Zenvia's business will further shift to a volume-based pricing model, where clients pay based on the number of interactions they have with their clients and prospects rather than the traditional per-seat SaaS model. This approach is enabled by the extensive use of AI in their software, which minimizes the reliance of human agents, enhances efficiency for clients, and unlocks greater revenue generation potential with much less complexity. The ZCC customer base is a mix of existing clients who transitioned and new customers. ZCC is expected to grow revenue 30% in 2025 with 70% gross margins and positive EBITDA. Anything in the SaaS and CPaaS business that is not ZCC is counted as non-core and may be divested in the near future. We have encouraged Zenvia to pursue a sale/carve out as a way to force the market to rerate the stock should they sell part of their business at a valuation multiple closer to peers.

MAPS

The company is an online marketplace/classifieds business for cannabis - it's a picks & shovel play. $180M revenue, 95% gross margins, 17% EBITDA margins, FCF generative. $45M cash, no debt but they do have operating leases. They have become the dominant platform in the industry. Given the company's lead in traffic, active users, and retailers/brands on the platform, WM Technology benefits from strong network effects. Dispensaries have to be on the platform if they want to drive sales. They trade at 1x revenue and 6x EBITDA. They had no sell side analysts or investors on their latest earnings call. The co-founders are trying to acquire the company at 1.7, effectively stealing the company from shareholders. The stock currently trades at 1.3 per share. We sent a letter to the Board urging them to reject the low ball acquisition and instead pursue a novel capital allocation approach that can improve their balance sheet and instantly get them attention from the capital markets.

TWLO

Twilio, Zenvia's closest comparable in CPaaS, has seen its stock triple in the past three month and now trades at 3.4x NTM Revenue vs. Zenvia at 0.7x NTM Revenue.

CRM

SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.

NOW

SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.

HUBS

SaaS comparables such as CRM (7.3x Revenue), NOW (14.2x Revenue), and HUBS (12.2x Revenue) have also seen their multiples expand.

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Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st December 2024

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Small Caps

AI

Data Centers

South Korea

Value

Media

AI

Emerging markets

Value

Onshoring

Defense Spending

Aerospace

Trade Policy

Automation

Trade Policy

Inflation

Investor Pitches

Current Portfolio as of ( 31st December 2024 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Theodore Rosenthal Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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TMR Partners Long Only