| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 30.7% | 0% | 0% |
| 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 |
Concentrated growth investor delivered 98.9% returns in 2025 through patient capital approach focused on durable competitive advantages. Portfolio organized by time horizon with Planet, Xometry, and Pagaya as core infinite duration holdings. Added Remitly and Thryv while trimming Planet on valuation. Bullish on long-term opportunities as short-term focused markets create advantages for patient investors. |
| Aug 15 2025 | 2025 Q2 | PGY, PL, RELY, SPIR, THRY, UPST, XMTR | AI, Concentration, Fintech, growth, SaaS, small caps, technology |
PL PGY THRYV XMTR RELY PL PGY UPST THRY SPIR XMTR RELY |
Concentrated growth portfolio delivering 20% annual returns through differentiated businesses with strong competitive moats. Key themes include AI-driven consumer credit disruption via Pagaya and Upstart, satellite data monetization through Planet Labs, and digital marketplace transformation via Xometry. Manager maintains long-term conviction despite volatility, focusing on fundamental business progression over market sentiment in emerging growth companies. |
| Jan 19 2025 | 2024 Q4 | PGY, PL, QQQ, SPIR, SPY, UPST, XMTR | Data, growth, small caps, SPACs, technology, value | - | Young investor with infinite time horizon runs concentrated portfolio of busted SPACs and secular growth companies. Delivered 73.2% returns in 2024 after recovering from 2022 losses. Portfolio companies transitioning from cash-burning to cash-generating in 2025, representing potential shift from market suspicion to legitimacy. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
SatellitePlanet is building a database business through its daily Earth scan, creating operational infrastructure that customers build workflows around. The manager believes Planet is becoming the default system of record for monitoring Earth, positioning it to capture significant economic power as the geospatial industry evolves toward integrated solutions. |
Satellite Geospatial Earth Monitoring Database Infrastructure |
AIAI is viewed as both opportunity and threat across portfolio companies. For Thryv, AI implementation is accelerating product velocity and forming a tailwind in the near term, though longer-term disruption remains uncertain. Planet benefits from being viewed as an AI winner by the market. |
AI Automation Product Development | |
FintechRemitly continues taking market share in remittances with strong unit economics, while stablecoins represent a technical enabler for faster, cheaper payments rather than a fundamental threat. The manager expects stablecoin benefits to be distributed across the industry and captured by customers. |
Remittances Payments Stablecoins Financial Services | |
ManufacturingXometry reached positive cash flow and continues building the largest network of manufacturing buyers and suppliers globally. The platform business model benefits from network effects as it scales. |
Manufacturing Platform Network Effects | |
| 2025 Q2 |
AIAI is viewed as an accelerant to value unlock across multiple portfolio companies. Planet Labs benefits from AI in moving up the value chain to deliver solutions rather than raw data. Consumer credit companies like Pagaya and Upstart use AI as a perfectly matched solution for the massive opportunity in consumer credit. Xometry's business is enabled by an AI instant quoting engine that allows for a new business model category. |
Consumer Credit Data Analytics Automation Digital Transformation Machine Learning |
Consumer FinanceThe manager sees consumer credit as a massive opportunity where AI is a perfectly matched solution, expecting the industry to evolve significantly over time. Both Pagaya and Upstart are positioned as major winners from this reshuffling, with each company approaching the problem slightly differently but with similarly thoughtful business models backed by focused execution. |
Credit Lending FinTech Risk Assessment Digital Lending | |
Digital TransformationMultiple portfolio companies are digitizing massive analog industries. Xometry is digitizing the custom parts buying process, transforming a tedious analog process into a digital marketplace. Thryv is executing a print to SaaS business model transition, leveraging relationships with small business owners to capitalize on SMB demand evolution towards SaaS. |
SaaS Marketplaces Automation Business Model Transition Technology Adoption | |
SatellitesPlanet Labs operates the largest fleet of earth observation satellites and has been the only company to image the entire Earth every day for eight years. This dataset represents a core, daily compounding advantage. The manager believes the economic value of this data will increase non-linearly over the next decade as the gap between value created and captured narrows. |
Earth Observation Data Space Technology Remote Sensing Geospatial | |
| 2024 Q4 |
SPACsManager has decent concentration in busted SPACs - companies that went public at too high valuations and have been left for dead. Some entities might possess solid business models, good leadership, and promising prospects; it will just take longer than expected to justify exorbitant valuations. |
SPACs Valuations Public Markets |
AIManager views data as God while AI may be king. Companies with massive, unique, and valuable datasets should accrue significant value as they build platforms and applications enabled by recent AI developments. Training data as a moat concept is experimental but promising. |
AI Data Training Data Platforms |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Aug 14, 2025 | Fund Letters | Unconventional Value | SPIR | Spire Global, Inc. | Information Technology | Technology Hardware, Storage & Peripherals | Neutral | NYSE | Data Analytics, Earth Observation, Founder Risk, leadership transition, satellite constellation, Space Analytics, Space-to-Cloud | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | XMTR | Xometry, Inc. | Industrials | Commercial Services & Supplies | Bull | NASDAQ | AI Quoting, Custom Manufacturing, Digital Marketplace, Industrial automation, Manufacturing Digitization, network effects, On-Demand Production | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | RELY | Remitly Global, Inc. | Information Technology | IT Services | Bull | NASDAQ | Cross Border Payments, Digital Remittance, Financial Inclusion, Fintech, Immigrant Services, money transfer, Secular Disruption | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | UPST | Upstart Holdings, Inc. | Financials | Consumer Finance | Bull | NASDAQ | AI Credit, Alternative Lending, Bank Partnerships, consumer finance, Credit Underwriting, Fintech, machine learning | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | PGY | Pagaya Technologies Ltd. | Financials | Consumer Finance | Bull | NASDAQ | AI Credit, Alternative Lending, consumer finance, Credit Underwriting, financial technology, Fintech, founder-led | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | PL | Planet Labs PBC | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NYSE | AI Analytics, Constellation, Data Monetization, Earth Observation, Geospatial Data, remote sensing, Satellite Imaging | Login |
| Aug 14, 2025 | Fund Letters | Unconventional Value | THRY | Thryv Holdings, Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | business transformation, Local Marketing, Management Quality, Print-to-Digital, SaaS Transition, small business, SMB software | Login |
| TICKER | COMMENTARY |
|---|---|
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| 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%. |
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