Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
White Brook Capital's 2025 commentary reveals a manager navigating multiple market dynamics with selective conviction. The firm operates three strategies: an Ethical S&P 500 replacement that performed in line with the index, a Small Cap Absolute Growth strategy that vastly exceeded expectations, and a new All Cap strategy launched after shutting down an underperforming midcap fund. The manager expresses skepticism about AI spending efficacy and the bitcoin treasury company mania, which he believes is ending as these companies now trade below their bitcoin reserves. Portfolio positioning includes overweight housing exposure through Builders FirstSource and Floor & Decor, semiconductor leaders Nvidia and Taiwan Semi as AI rent extractors, and a concentrated healthcare focus in small caps. Key macro concerns include consumer spending divergence across income levels, softening labor markets, and uncertain inflation trajectory. The manager feels optimistic about finding new return pockets across market caps while maintaining discipline around valuation and seeking potential doubles rather than modest gains.
White Brook Capital focuses on finding potential doubles across market capitalizations by investing in best-in-class operators during periods of weak stock prices, with particular emphasis on small cap growth opportunities and selective positioning in AI beneficiaries while avoiding overvalued manias.
The manager feels as good about owning a nimble portfolio of stocks with the ability to find new pockets of returns as they have since starting the firm. They are confident in the future of the new All Cap strategy and expect continued success in the near term for the Small Cap strategy.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 31 2026 | 2025 Q4 | BLDR, FND, GOOG, JAKK, MSFT, MSTR, NVDA, PTLO, RPID, TSM | AI, crypto, growth, healthcare, inflation, semiconductors, small caps, value | - | The efficacy of AI expenditures started to be questioned during Q4 2025. Companies like Microsoft continue spending aggressively on cloud capacity, but value is now… |
| Oct 16 2025 | 2025 Q3 | TGT, TTSH | Artificial Intelligence, Housing, Market Bubble, small caps, Value Investing |
PTLO US TGT US |
White Brook critiques AI euphoria and speculative valuations, comparing the boom to the fiber-optic bubble. The fund remains cautious but opportunistic, favoring companies with real… |
| Jul 15 2025 | 2025 Q2 | - | Compounding, Concentration, free cash flow, Governance, Quality | - | The commentary centers on owning a concentrated portfolio of high-quality businesses with durable competitive advantages. Management emphasizes free cash flow generation, strong governance, and long-term… |
| Apr 5 2025 | 2025 Q1 | - | - | - | - |
| Jan 27 2025 | 2024 Q4 | AFYA, BOX, DNUT, GBRE, GBX, INFU, KAR, LTH, MOS, OKTA, PTLO, RPID, W | - | - | - |
| Oct 22 2024 | 2024 Q3 | AFYA, BLDR, DNUT, OKTA, W | - | - | - |
| Jun 30 2024 | 2024 Q2 | AFYA, BLDR, GPRE | - | - | - |
| Apr 27 2024 | 2024 Q1 | PETQ, RILY | - | - | - |
| Jan 25 2024 | 2023 Q4 | BLDR, GPRE, MOS, RILY | - | - | - |
| Oct 20 2023 | 2023 Q3 | BLDR, GBX | - | - | - |
| Jul 15 2023 | 2023 Q2 | MOS, RILY, U | - | - | - |
| Apr 19 2023 | 2023 Q1 | AFYA, GBX, GPRE, ITRI, KAR, MOS, PSPC, RILY | - | - | - |
| Jan 25 2023 | 2022 Q4 | BOX, GBX, MOS, RILY | - | - | - |
| Apr 11 2022 | 2022 Q3 | BOX, GBX, ITRI, KAR | - | - | - |
| Jun 30 2022 | 2022 Q2 | AFYA, ITRI | - | - | - |
| Mar 31 2022 | 2022 Q1 | IAC, KAR, MHK, MTCH, QRTEA | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CryptoCryptocurrency exposure through Coinbase reflects positioning for financial deregulation and disintermediation, with stablecoins expected to become a preferred transfer mechanism following regulatory developments like the GENIUS Act passage. |
Digital Assets Blockchain Stablecoins Regulation FinTech | |
SemiconductorsTaiwan Semiconductor represents the dominant manufacturer for leading fabless chip designers including NVIDIA, Apple, and Broadcom. The global arms race to develop artificial general intelligence will support multiple years of robust growth for foundries with leading-edge capabilities. |
Foundries Advanced Process AI Chips Manufacturing Technology Leadership | |
Small CapsConcentrated portfolio of small-cap companies with limited sell-side coverage and institutional ownership. Invests where most institutional managers cannot or will not participate, allowing for asymmetric return potential. 44% of Russell 2000 stocks have zero Wall Street coverage, creating mispriced opportunities. |
Russell 2000 Limited Coverage Institutional Asymmetric Mispriced | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
Small CapsConcentrated portfolio of small-cap companies with limited sell-side coverage and institutional ownership. Invests where most institutional managers cannot or will not participate, allowing for asymmetric return potential. 44% of Russell 2000 stocks have zero Wall Street coverage, creating mispriced opportunities. |
Russell 2000 Limited Coverage Institutional Asymmetric Mispriced | |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable | |
| 2025 Q2 |
QualityThe portfolio has shifted toward higher quality businesses with better profitability, lower leverage, and less volatile earnings. Quality stocks underperformed significantly in 2025, creating attractive entry points for value investors. The manager maintains price discipline while seeking quality companies trading at discounts to intrinsic value. |
Quality Profitability Leverage Earnings |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 16, 2025 | Fund Letters | Basil F. Alsikafi | PTLO US | Portillo’s Inc | Consumer Discretionary | Restaurants | Bull | NASDAQ | growth, management, Margins, Restaurants, turnaround, valuation | Login |
| Oct 16, 2025 | Fund Letters | Basil F. Alsikafi | TGT US | Target Corp | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | cashflow, consumer, dividend, management, retail, turnaround | Login |
| TICKER | COMMENTARY |
|---|---|
| BLDR | This is the largest supplier of building materials in the United States. They sell lumber and prefabricated products such as trusses and millwork to homebuilders, often helping the builders improve efficiency. The company has been buying up industry competitors. We bought a small amount of stock in 2024 at the price of US$149 per share. I estimated this represented approximately 12 times earnings. However, lumber prices and home building activity are cyclical, and both continued to decline from elevated levels after the COVID-19 crisis. I still like the company and the investment idea. I think the company will benefit from continued industry consolidation. The stock is currently trading at US$105 which is about 17 times earnings. I believe the company's earnings could be temporarily depressed but we have not yet bought more shares. Builders FirstSource is now one of our smallest investments. |
| FND | Floor & Decor Holdings (FND) is a specialty retailer offering a broad assortment of hard-surface flooring products at everyday low prices. |
| GOOG | Alphabet's Q4 performance marks a significant triumph, characterized by a rare beat and raise narrative across all critical business segments. The company's recent earnings report was driven by a balanced contribution from its legacy Search and YouTube divisions, with Google Cloud emerging as the standout performer. Cloud's revenue growth reached an impressive 34%, and it boasts an extraordinary $155 billion backlog, a nearly double increase compared to the previous quarter. |
| JAKK | The All Cap Strategy also borrows from the highest conviction theses in liquid stocks owned in the Small Cap Strategy and has been a beneficiary of Rapid Micro Biosystems (RPID) rapid rise while also holding the heretofore underwhelming JAKKS Pacific, Inc (JAKK). |
| MSFT | OpenAI's well-documented 'circular' funding with its business partners (NVIDIA, Microsoft, among others) is additional cause for concern. |
| MSTR | Our original cost basis is around $17/share. Strategy operates as the leader in pioneering corporate bitcoin strategy. The company holds the largest corporate bitcoin stash (by far). It monetizes this through fixed-income securities like convertible notes and structured debt. The case for MSTR is leveraged bitcoin upside under proven capital allocators, with a steady software business on the side. 2025 was a tough year for MSTR. The stock declined 47.53% thanks to BTC volatility and market rotation away from high-conviction names. Putting the 'treasury company' hype aside, which now includes many MSTR copycats, I still think the core thesis holds. |
| NVDA | Nvidia sits at the top of the S&P 500 as the designer in the AI ecosystem. |
| PTLO | While we'll miss, as we have so far with Portillo's Inc (PTLO), if it's in the portfolio, our belief is that there's the potential to double our investment. |
| RPID | The All Cap Strategy also borrows from the highest conviction theses in liquid stocks owned in the Small Cap Strategy and has been a beneficiary of Rapid Micro Biosystems (RPID) rapid rise while also holding the heretofore underwhelming JAKKS Pacific, Inc (JAKK). |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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