“To move from the old to what is about to come is the only tradition worth keeping.” - Marcus Wallenberg to his brother Jacob in 1946, suggesting selling the family’s railroad holding and moving to invest in the airline SAS.The quote above is from the Swedish Wallenberg family, who run an industrial-focused family office called Investor AB (STO: INVE-B — Mkt Cap $102.8bn). Similarly, Exor (OTCM: EXXRF — Mkt Cap $19bn) operates as essentially a publicly traded family office for the Agnelli Family, who founded Fiat in Turin, Italy, in 1899. The Agnelli family fortune was built on Fiat, but the story of Exor is about diversification. Like many of the capital allocators I look at, there is a range of quality among the holdings. Some of the headline holdings, like Ferrari and now Juventus, represent the quality of the business, while Stellantis and Clarivate’s struggles continue to bring concern. Additionally, there are some new ventures and structural choices that can bring some new excitement to the opportunities for Exor.In 1997, at age 22, John Elkann joined the Board of the Agnelli family investment operation. Over the next few years, he continued studying engineering and working in finance before joining his family business full-time. In 2011, Elkann became CEO and Chair of Exor. From its earliest founding, the business focused on his family’s heritage asset — Fiat. Based on the capital allocation moves he has made since then, Elkann clearly recognized the limitations of having his family wealth tied up in one automaker. Since then, he has methodically diversified the Fiat asset through spinoffs, acquisitions, and investments in new areas. Elkann’s track record of delivering value to shareholders shows creativity and forethought. He is also a board member of Meta, which offers Elkann a ringside seat at Silicon Valley innovation.One of the most valuable actions Exor has taken to unlock value from the Fiat holding is spinning off Ferrari. Ferrari today trades around 40x earnings, where previously the company had been buried inside Fiat. Automakers garner a single-digit P/E compared to true luxury like Ferrari, unlocking this mismatch has been one of Elkann’s most successful moves. Today, Ferrari is by far the largest piece of the company and one of the highest quality pieces as well.The value of the heritage business of Stellantis (Fiat, Chrysler, Jeep) is a distant second, and with other opportunities looking to be more promising could continue to fall lower down the list. Today, Stellantis trades at an anemic valuation. Due to tariffs, fierce competition, and changes coming from EVs, Stellantis is the second-largest Exor holding, but has a gloomier outlook than most of the other Exor holdings.As for the rest of the major holdings, Philips continues to navigate some current issues discussed below; it could be a contender for one of the top places in Exor’s portfolio. From a growth perspective, Lingotto, the investment management company within Exor, is the most exciting part of the business. Started in 2023, the strategies have already produced competitive returns and brought in 3rd party capital. Similar to other capital allocators, this can be a unique alternative income source for the business. Since the above graphic was combined, the AUM of Lingotto has increased by about a third.Subscribe nowExor is a capital allocation story. The company started simply with the holding of Fiat and has now become an important player in the spin-off space, and has built large positions in a number of quality assets. The types of assets initially based primarily in the industrial space have remained similar among the large positions (although Ferrari and Iveco are very different from Fiat), but there are also no expansions into investment management, healthcare, and other spaces. Still, there is a long road ahead and a lot of potential left for the company.Already, Exor has compounded net asset value at 18.1% since 2009. This is coming from a core of questionable quality automobile manufacturing assets. This serves as an important reference point, considering the current business concerns, and is a testament to management’s ability to perform.The table below shows Exor’s major holdings, their ownership of the companies, and their voting share. Exor is in the habit of prioritizing having the majority or the highest individual voting control within its portfolio companies. I also added the Price/Earnings ratios to show the significant dispersion across some of the top holdings.*first year of profitability, so earnings multiple is not very usefulFerrariFerrari 296 GTBFerrari (NYSE: RACE — Mkt Cap $74.58bn) is one of the most prolific luxury brands and has been one of the most popular “growth” stocks of the past decade. The company’s unique image and competitive margins make it an attractive business. In 2024, Ferrari produced a 36% total shareholder return. During the year as well Exor reduced its position in Ferrari to lessen the concentration of the holding. Exor still remains the company’s largest shareholder. The company reported a 48% ROE in 3Q25, continuing its streak of high performance. It is no surprise for an Italian-based asset management firm to have the majority of its assets in the strongest Italian brand and one of the country’s highest-performing companies. Ferrari management is confident in the company’s ability to continue to grow and maintain its high margins as it scales. Ferrari produced a 28.3% adjusted operating margin in 2024. Further, the company has continued to produce its classic gas offering while capitalizing on electrification trends, adding new models to its lineup, not to mention revenues from racing.StellantisStellantis (NYSE: STLA — Mkt Cap $29.39bn) is often cited as one of the biggest concern points for Exor. In 2024, the company had a -36% total shareholder return in response to some market headwinds. These included significant competition challenges and regulatory concerns, as well as operational problems. In response to the underperformance, the board appointed Antonio Filosa as the group’s new CEO in June 2025. Filosa previously served a number of roles in the organization, especially in the Americas, where he led the team to some important successes. In the context of today, this is important as North America was a key underperforming market for the company. Along with this, there were a number of other executive changes to strengthen the turnaround effort. The company trades at a poor valuation of 5.69x Price/Cash Flow. The company has produced negative returns on equity, further showing the poor performance. Stellantis, being a core of Exor since the beginning, operates in stark contrast to the many quality holdings within the business.IvecoIveco Group was formed through a spinoff from CNH Industrial at the end of 2021. The European truck and bus maker has struggled slightly in recent quarters with lower demand for trucks in the region. Sales declined 41.8% in 1Q25 compared to 1Q24. In July 2025, Iveco made an agreement to sell off its defense business, which had multiple periods of underperformance, to Leonardo, an Italian defense and security company. The business unit was sold for an enterprise value of $1.98bn. The deal is expected to officially close in March 2026. Proceeds from the sale are intended to be paid out to shareholders through a special dividend.Iveco group reached an agreement with the approval of Exor to be bought out by Tata Motors for $4.42bn in an all-cash deal. Exor’s 27.1% shareholding represents a payout of ~$1.2bn. This excludes the special dividend from the sale of the defense business.PhilipsA middle ground between the high-performing assets like Ferrari and the struggling assets like Stellantis is Philips (NYSE: PHG — Mkt Cap $26.53bn). Philips, a health technology company, worked during 2024 to improve profitability and during that year created a 19% return for shareholders. Some concerns for the business unit have arisen related to uncertainties in the Chinese market and US litigation related to Respironics products. As of year-end 2024, the company had a net asset value for Exor of $4.63bn. Going forward, the priorities for the business are growth as well as simplification of the business with the intent of further improving margins. Exor has invested in Philips on three separate occasions, the most recent in 2025, for a combined shareholding of 18.4% of the business (18.7% voting rights).CNH IndustrialCNH Industrial (NYSE: CNH — $12.98bn), the former parent of Iveco Group, is an agricultural and construction equipment maker. The company produced a 2% shareholder return in 2024. This poor performance was driven by overall market headwinds during the year. The company is working on improving efficiency going forward.ClarivateClarivate (NYSE: CLVT — Mkt Cap $2.18bn), a provider of enriched data, insights, analytics, and more, also struggled in 2024 with a 40% decline in share price during the year. However, the company reported a 90% renewal rate across its base of 45k clients. Most of the company’s growth in 2024 was inorganic. In August 2024, the company appointed Matti Shem Tov as the new CEO; previously, he served as CEO of ProQuest, a company acquired by Clarivate. Going forward, the business is focused on subscription revenues.Outside of some of Exor’s hallmark holdings, there are a number of other private holdings with varying performances.In 2024, Welltec, a sustainable well completion and intervention provider for the oil and gas industry, saw a 51% increase in valuation. The company has an over 50% EBITDA margin on $426m in revenue. The profitability of the business has allowed it to delever to 0.4x from a peak of 3.1x in 2021. Additionally, 2025 is the first year of the company producing a dividend.Another private holding, Via, which creates digital networks for public transportation, saw an 11% increase in valuation. Exor invested in the company in 2020 and 2023 for a combined $250m, representing a ~19% shareholding and making Exor the largest shareholder. The investment started as an investment in the Venture portfolio. Via works with notable transit agencies in London, New York, San Francisco, and more, as well as working with employee transit programs for companies like Google and ASML. As of the end of 2024, the company produced an annualized revenue run rate of $367m, an increase of 30% year/year. This momentum is expected to continue into 2025 and 2026.On less sure footing is Shang Xia, a luxury brand created under Hermès with the intent of integrating traditional Chinese craftsmanship with modern design and quality materials. The initial investment was made in 2020 with a thesis based on the strengths of the unique offering in Chinese and international markets. Along with the overall Chinese luxury market struggles in 2024, the brand suffered as well. The market sector saw an overall 20% decline in 2024. Shang Xia was still able to keep revenues flat year/year and reduce operating costs by 55% which contributed to halving the operating loss from 2023. This improvement stemmed from simplifying the business, including moving away from fashion offerings. Exor analysts are confident that the brand is positioned to be profitable in the near term and grow once the market rebounds. The brand is viewed within the Chinese luxury market as a “new money” or flashy brand.JuventusExor acquired a 65% stake in Juventus, one of the top Italian football clubs. This investment clearly fits in with many other big Italian brands owned or controlled by Exor. From a balance sheet perspective, this is not the most meaningful part of the company, but it is a fun addition to the conglomerate.LingottoExor is not the most complex capital allocator out there, unlike a Brookfield, for example, but there are still a number of moving parts. In an effort to make future investment structure simpler, the company is focusing future investments through its subsidiary Lingotto, founded in 2023. Lingotto has multiple funds that invest in both public and private markets. Further, the structure of the subsidiary allows others to fund deals as well. In 2024, Lingotto welcomed its first external investor, outside of Exor and Covéa. Lingotto has $8.2bn in assets under management (AUM), up from $6bn at the end of 2024. Success for the entity relies on growth through returns, but new capital is also a driver to make this more powerful. Lingotto is a growing part of Exor with a new office in New York and a growing team of 50+ people. The strategies within Lingotto include Intersection, Innovation, Horizon, and Mosaic.The Intersection Strategy, led by Matteo Scolari, is a long-short public equities fund that is based on the idea that breakthroughs come at the crossroads of different fields. Some of the notable positions for the fund include:Carvana (NYSE: CVNA — Mkt Cap $76.17bn) was initiated in 2023 during a time of uncertainty for the company. The investment was made just below $10/share, representing a 35.4x return today. This remains the largest holding across all of Lingotto’s public portfolio.Rolls-Royce (LON: RR — $97.33bn) was the largest contributor to performance for the fund in 2023 and continued well in 2024, 5.8x return over the 2 years. The investment team is confident in Rolls-Royce’s ability to continuously improve margins and guidance under the new CEO.Ocado (LON: OCDO.L — Mkt Cap $2.62bn), licensor of grocery technology and automation, was cited by management as one of the main detractors to fund performance. Most of this stemmed from underperformance by their primary customer, Kroger. The investment team views these as temporary challenges and is confident in the company’s ability to perform in the future.The Innovation Strategy, led by James Anderson and Morgan Samet, previously invested in earlier-stage companies ranging from venture capital to public equities. Now the fund has pivoted away from new venture investments in line with Exor’s shift to a monetization outlook for these holdings that is being overseen by CFO Guido de Boer. Below are some of the top holdings of the strategy.For some other insight into the Innovation Strategy and more background on James Anderson, I highly recommend this podcast.The Horizon Strategy, led by Nikhil Srinivasan, is a mix of direct private investments and funds of funds. This is a global strategy run from a macro perspective. In my view, this is the least exciting of the Lingotto strategies; however, there is some stiff competition.The Mosaic Strategy, led by Pam Chan, was launched during H2 2024. This new fund invests in private assets and is focused on downside mitigation and uncorrelated return sources. The investments are predominantly in North America and are sector agnostic. This will be an interesting fund to monitor as it develops.Subscribe nowValuationThere are many clear points of uncertainty and problems within pieces of Exor; however, there are also many points of potential and quality. This being the case, and all I have outlined above, it is hard to see a 0.42x Price/Tangible Book Multiple being even remotely expensive. Management appears to also view the stock as unvalued, having recently announced a ~$1.16bn tender buyback plan, or ~5% of outstanding shares. The buyback was completed earlier this year. Primary shareholder of the company, Giovanni Agnelli, participated ~$659m in the transaction.ConclusionExor is a mixed bag of quality and opportunity, but when looking at the company as an investment, I keep coming back to a quote from Howard Marks:“Risk is a function of price not asset quality” - Howard MarksThe Swedish family office firm, Investor AB, referenced at the beginning of this post, trades at 1.1x Book Value. One can make the case that Exor’s assets are not as high quality as Investor’s; however, Exor’s valuation reflects that with a valuation under half Book Value. With the possible exception of Stellantis, none of the larger holdings appear to have systemic issues.Additionally, Exor has a number of significant areas of concern from a growth perspective, like Philips and Clarivate. However, there are also a number of places with significant quality, like Ferrari, Juventus, and Lingotto. The latter are high-quality assets with significant growth potential. Further, the overall company trades at less than half of tangible book value. Based on the opportunity set of the high-quality assets and the likelihood for at least some of the lower-quality assets to improve, this makes Exor look like a very interesting opportunity. There appears to be a limited number of downside outcomes and a number of upside opportunities paired with a valuation that is relatively easy to get comfortable with. Lingotto appears to be an increasingly important part of Exor and will be a driver of increasing the overall company’s AUM through 3rd party investors. The investment manager has already grown quickly through asset increases as well as returns on those invested assets.Until Thursday,SorenThanks for reading Pillars And Profits! Subscribe for free to receive new posts and support my work.Disclaimer: Soren Peterson and Pillars and Profits Newsletter are not financial advisors and nothing contained in this article should be considered financial advice. Soren Peterson and Pillars and Profits Newsletter may have holdings in the securities discussed. Soren Peterson and Pillars and Profits Newsletter are not responsible for any investment results. Always do your own research.