| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The manager traveled through nine Latin American countries to understand investment opportunities in a region with enormous natural resource wealth but persistent institutional failures. Despite vast commodities and young demographics, most Latin American countries have underperformed due to repeated socialist experiments that weakened property rights and destroyed currency stability. Hyperinflation episodes demonstrate how institutional breakdown makes long-term investment impossible, forcing defensive short-term behavior. However, recent political shifts toward market-oriented policies in Argentina, Chile, and other countries could create opportunities if institutional improvements prove sustainable. The manager added Corpay to the portfolio, a US technology company focused on corporate payments and cross-border transactions. Corpay benefits from recurring revenue, high customer switching costs, and the structural trend toward payment digitization. The business combines payment infrastructure with analytics and control mechanisms, generating strong cash flows for reinvestment. The manager believes the current share price undervalues Corpay's financial metrics and long-term potential in the growing corporate payments market.
Institutional quality determines investment success more than natural resources or macroeconomic potential, as demonstrated by Latin America's persistent underperformance despite vast wealth, while technology companies like Corpay benefit from structural digitization trends and recurring revenue models.
The manager sees potential for Latin America if recent political shifts toward market-oriented policies prove permanent and translate into better institutional frameworks. The region's enormous natural resource wealth could finally be unlocked with proper governance. For Corpay, the structural growth trend in payment digitization combined with recurring business characteristics presents long-term potential.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 6 2026 | 2025 Q4 | CPAY | emerging markets, inflation, Institutional, Latin America, payments, technology, Travel | CPAY | Latin America demonstrates how inflation destroys wealth and institutions over decades. Hyperinflationary environments force short-term defensive behavior, erode trust in institutions, and make long-term investment… |
| Oct 2 2025 | 2025 Q3 | FI, MRX, NVO | commodities, growth, healthcare, payments, value |
FISV MRX |
The letter centers on valuation discipline, warning against both value traps and growth traps caused by narrative-driven investing. Intrinsic value estimation, margin of safety, and… |
| Jul 3 2025 | 2025 Q2 | - | Currency, inflation, Patience, Pricing Power, time arbitrage | - | The letter frames equity investing as a primary defense against long-term currency debasement and inflation. Management argues that holding high-quality businesses with pricing power reduces… |
| Apr 4 2025 | 2025 Q1 | BRK/A, URI, WSM | - | - | - |
| Jan 6 2025 | 2024 Q4 | AMAT, KLAC, LRCX | - | - | - |
| Oct 3 2024 | 2024 Q3 | AAPL, BN, HUM, KLAC, MKL | - | - | - |
| Jul 3 2024 | 2024 Q2 | CRST LN, CVS, OSB LN | - | - | - |
| Apr 20 2024 | 2024 Q1 | CE, LH, LMT | - | - | - |
| May 1 2024 | 2023 Q4 | ABG, ATD/B CN, BRK/A, BUR, JPM, LH, NKY IND | - | - | - |
| Apr 10 2023 | 2023 Q3 | ELV, FTRE, HUM, WTW | - | - | - |
| Jun 7 2023 | 2023 Q2 | EXO NA, GOOG | - | - | - |
| Jan 4 2023 | 2023 Q1 | JFN SW", MG CN | - | - | - |
| May 1 2023 | 2022 Q4 | ARW, GOOG | - | - | - |
| Oct 10 2022 | 2022 Q3 | ATD CN, BMW GR, BRK, CVS, JPM, LMT, Nikkei 225MKL | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
InflationInflation has continued to be a persistent feature in Japan and has prompted changes in both corporate and consumer behavior. Importantly, inflation has fed through to corporate earnings and equity performance. Companies that have successfully passed on higher costs to consumers have benefited from improved operating margins. |
Inflation Corporate Earnings Operating Margins Consumer Behavior Cost Pass-through |
Latin AmericaThe region shows enormous natural resource wealth but persistent institutional failures that prevent capital accumulation. Recent political shifts toward market-oriented policies in several countries could create new investment opportunities if institutional improvements prove sustainable. |
Institutional Natural Resources Political Reform Emerging Markets | |
PaymentsWise represents the most asymmetric investment in the portfolio, taking market share from legacy correspondent banking through cheaper, faster, and more transparent infrastructure. The company is evolving from a remittance app into a global financial services platform with three reinforcing routes to market: Consumer, Business and Platform. |
Cross-border Fintech Infrastructure Platform SME | |
| 2025 Q3 |
Growth |
|
HealthcareFund focuses exclusively on healthcare sector with concentrated portfolio of small-cap companies. Investment approach targets special situations within healthcare including spin-offs, asset sales, business model pivots, and new product launches. Portfolio includes pharmaceutical, medical device, biotechnology, and healthcare IT companies. |
Pharmaceuticals Medical Devices Biotechnology Healthcare IT Special Situations | |
ValueThe portfolio trades at significant discounts to the broad market, with P/E ratios 40-42% below the S&P 500. The manager believes many steady-growing companies are overlooked by markets focused on AI winners, creating opportunities in businesses with lower assumed margins and productivity that could benefit from AI adoption. |
Discount Multiples Undervalued Overlooked Opportunity | |
| 2025 Q2 |
InflationInflation has continued to be a persistent feature in Japan and has prompted changes in both corporate and consumer behavior. Importantly, inflation has fed through to corporate earnings and equity performance. Companies that have successfully passed on higher costs to consumers have benefited from improved operating margins. |
Inflation Corporate Earnings Operating Margins Consumer Behavior Cost Pass-through |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 2, 2025 | Fund Letters | Daniel Gladiš | MRX | Marex Group plc | Financials | Financials | Bull | Japan Exchange Group (Tokyo Stock Exchange) | Capital markets, Commodities, infrastructure, Liquidity, Trading, Volatility | Login |
| Jan 6, 2026 | Fund Letters | Daniel Gladiš | CPAY | Corpay Inc | Financials | Transaction & Payment Processing | Bull | New York Stock Exchange | cashflow, FX, Payments, Recurringrevenue, scale | Login |
| Oct 2, 2025 | Fund Letters | Daniel Gladiš | FISV | Fiserv Inc. | Other | Financial Technology | Bull | NASDAQ | Digital, Fintech, infrastructure, Merchant, Payments, recurring revenue | Login |
| TICKER | COMMENTARY |
|---|---|
| CPAY | Corpay is a US based global technology company focused on corporate payments, expense management, and cross-border transactions with the goal of simplifying and automating business payment flows. Its customers – typically medium and large companies – utilize the Corpay platform to centralize payments, control costs, and streamline administration, all of which are time-consuming and capital-intensive tasks in traditional payment processes. The essence of this business is to replace fragmented, manual, and often nontransparent processes with a digital solution that provides companies better visibility into their cash flows and greater operational discipline. An important component of Corpay's business consists in commercial and fleet payment programs that cover specific expense categories such as those for fuels, travel expenses, tolls, and other operating outlays. These segments are characterized by a high degree of repeatability, long-term customer relationships, and relatively stable margins. Corpay benefits from its scale, data, and ability to offer customers not only payment itself but also analytics, reporting, and control mechanisms that increase their willingness to stay with a single provider. A rapidly growing pillar of the group consists in international payments and currency conversion services, where Corpay helps companies execute cross-border transactions while managing exchange rate risk. This segment benefits from the ongoing globalization of business, the growing complexity of payment flows, and companies' efforts to reduce costs associated with bank transfers. For Corpay, this is an attractive area with higher added value, where the company combines payment infrastructure with FX margins and specialized services. Overall, Corpay's business is built on a combination of recurring transactions, its technology platform, and high costs of switching between suppliers. Once a customer is integrated into the system and has its payment processes set up, switching to a competitor is complicated and unappealing. This enables the company to grow over the long term, increase efficiency, and generate strong cash flows that it can reinvest into further product expansion, acquisitions, and technological leadership. Corpay's management has many years of experience in identifying, integrating, and improving the operations of acquisitions, which, since 2009, have contributed to more than 20% annualized profitability growth. In our view, the present share price does not reflect the company's current financial metrics, efficient asset allocation, and long-term potential, which combines a structural growth trend with high-quality, recurring business and strong capital discipline. |
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