| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 30.7% | - | 98.9% |
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 98.9% | 73.2% | 24.6% | -32.1% |
Unconventional Value delivered exceptional returns in 2025 with a 98.9% gain, driven by strong performance from concentrated positions in Planet, Xometry, and Pagaya. The manager organizes the portfolio by time horizon, with most capital allocated to infinite duration holdings like Planet, Xometry, Pagaya, Amazon, and Upstart that possess structural competitive advantages. Planet remains the largest position despite partial profit-taking due to valuation concerns, as the manager believes it is building a database business around daily Earth imaging rather than just selling satellite imagery. New additions include Remitly, a digital remittance leader taking share from legacy players, and Thryv, a situational play transitioning from legacy marketing services to SaaS. The manager emphasizes that market forces increasingly focused on short-term results create unprecedented opportunities for patient capital. Key risks include increased market volatility and technology disruption, while catalysts include AI implementation and continued digital transformation. The forward outlook remains highly optimistic for long-term oriented investors with the capacity to think beyond quarterly results.
Concentrated investing in durable businesses with structural competitive advantages, organized by time horizon to maximize the advantage of patient capital in markets increasingly focused on short-term results.
The manager expresses strong optimism about long-term opportunities for patient capital, stating that the opportunity has never been greater for fundamentally-minded, long-term investors. AI will never replace human judgment, and market forces focused on short-term results create advantages for those with longer time horizons.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 22 2026 | 2025 Q4 | AMZN, HIMS, PGY, PL, RELY, SPIR, THRY, UPST, WISE.L, WU, XMTR | AI, Fintech, growth, SaaS, Satellites, small cap, technology, value |
PL THRY RELY |
AI is viewed as a technology enabler that will accelerate product development and create tailwinds for existing businesses rather than replace human judgment. The manager… |
| Aug 15 2025 | 2025 Q2 | PGY, PL, RELY, SPIR, THRY, UPST, XMTR | AI, Concentration, disruption, Founders, growth |
PL PGY THRYV XMTR RELY |
The letter centers on applying AI-driven disruption to underappreciated business models in consumer credit, data, and software. Management focuses on founder-led companies with differentiated assets… |
| Jan 19 2025 | 2024 Q4 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
FinTechThe fund continues its growth approach to investing in financial and financial-related companies, including payment businesses, financial exchanges, and data providers that enable financial transactions. The common denominator across all holdings is the use of technology and data to better serve customers and grow at above-average rates. |
Payments Digital Banking Financial Technology Data Analytics Financial Software | |
SaaSSoftware multiples have compressed as if AI disruption is inevitable, while hyperscalers and enterprises still struggle to demonstrate clear AI ROI. The traditional SaaS playbook faces challenges from AI eating into margins, attacking the pricing unit, and creating cannibalization problems. The software total addressable market is likely to grow 2-3x as AI replaces some work and the gap between software spend and headcount narrows. |
Software Disruption Margins Pricing Platform Shift | |
SatellitesPlanet's satellite constellation and daily Earth imaging capability represents a unique infrastructure play. The manager believes Planet is building the default system of record for monitoring Earth, with the daily scan providing infinitely scalable data distribution at zero marginal cost. |
Earth Imaging Geospatial Infrastructure Data | |
| 2025 Q2 |
AIThe extended federal government shutdown added volatility during what was otherwise a risk-on environment, with a mid-quarter shift in market behavior for AI-related equities as the exuberant narrative evolved to one more balanced in assessing the technology's enormous potential against staggering capital spending plans and high expectations. The team initiated a position in Credo Technology as a more diversified way to gain exposure to strong trends in AI-connectivity. |
Connectivity Semiconductors Infrastructure Capital Spending |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Aug 15, 2025 | Fund Letters | Tim Gallagher | PL | Planet Labs PBC | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | AI, Data Monetization, Earth Observation, Satellite Imagery, Unique Asset | Login |
| Aug 15, 2025 | Fund Letters | Tim Gallagher | PGY | Pagaya Technologies Ltd. | Financials | Consumer Finance | Bull | NASDAQ | AI, Consumer credit, Fintech, founder-led, Market Disconnect | Login |
| Aug 15, 2025 | Fund Letters | Tim Gallagher | THRYV | Thryv Holdings, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | Joe Walsh, Management Play, profitable growth, SaaS Transition, SMB | Login |
| Aug 15, 2025 | Fund Letters | Tim Gallagher | XMTR | Xometry, Inc. | Industrials | Trading Companies & Distributors | Bull | NASDAQ | AI, Digital Marketplace, disruption, manufacturing, network effects | Login |
| Aug 15, 2025 | Fund Letters | Tim Gallagher | RELY | Remitly Global, Inc. | Information Technology | IT Services | Bull | NASDAQ | contrarian, digital payments, Fintech, Remittance, secular growth | Login |
| Feb 22, 2026 | Fund Letters | Tim Gallagher | PL | Planet Labs PBC | Industrials | Research & Consulting Services | Bull | New York Stock Exchange | Data, Geospatial, Satellites, Scalability, valuation, Workflow | Login |
| Feb 22, 2026 | Fund Letters | Tim Gallagher | THRY | Thryv Holdings, Inc. | Information Technology | Application Software | Bull | NASDAQ | cashflow, debt, SaaS, Software, turnaround, valuation | Login |
| Feb 22, 2026 | Fund Letters | Tim Gallagher | RELY | Remitly Global, Inc. | Financials | Transaction & Payment Processing Services | Bull | NASDAQ | Fintech, growth, Margins, Remittances, Transaction Processing, Unit economics | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | This quarter, we took profits in our hyperscaler portfolio companies (Amazon and Google) and increased our position in NVIDIA. |
| HIMS | Hims & Hers Health (-43%) |
| PGY | Pagaya proved its economic model and took significant strides expanding its lending network. I added to my investments in Pagaya. |
| PL | Top 3 contributors to absolute performance: ATEC, PL, AGX |
| RELY | Remitly Global, Inc. is a digitally native money transfer firm strategically capturing market share in the cross-border remittance space, competing effectively against established players such as Western Union and MoneyGram. The company has reached a scale that positions it for potentially substantial improvements in profitability going forward. Despite reporting robust quarterly earnings, the stock underperformed during the quarter, influenced by management's guidance indicating a deceleration in revenue growth compared to previous periods. This tempered outlook stems from challenging year-over-year comparisons and, to a lesser extent, immigration-related headwinds affecting remittance volumes. Nevertheless, Remitly continues to expand its market presence even amid a temporarily subdued demand environment. |
| SPIR | I've written about Spire Global in the past but am waiting for more consistent reporting and some demonstrable progress to make any additional decisions there. |
| THRY | Finally, we realized a meaningful loss in Thryv Holdings Inc. (THRY). Despite my initial view that the company offered a 'hidden gem' SaaS business tucked within a legacy Yellow Pages wrapper, operating results did not develop as I expected. When we bought in Q1 2025, the SaaS segment had produced multiple quarters at or near Rule of 40 metrics and management laid out a credible cross-sell path to meaningfully grow mid-term recurring revenue. The thesis broke in Q3 2025 when seasoned net revenue retention fell 900 bps to 94%, exposing higher churn—especially among migrated Yellow Pages customers—while new product development was substantially delayed. With the growth plan reset and confidence in execution gone, we sold the position and will monitor from the sidelines. |
| UPST | I thought Upstart's AI day was a fantastic explanation of how the company is developing a unique competitive advantage in consumer lending. |
| WISE.L | Wise is the most asymmetric investment in our portfolio today and illustrates the idea of bounded downside and long-run upside in practice. Wise helps consumers and businesses hold and move money across borders, taking market share from the legacy correspondent banking model through infrastructure that is cheaper, faster, and more transparent. |
| XMTR | XMTR reported another better-than-expected quarter where marketplace revenue accelerated to 31%. Enterprise growth remained >40%. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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