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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Hosking Partners 2025 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Hosking Partners)

Primary Source Intelligence • Q3 2025 Letter Analysis

Hosking Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Hosking Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+11%

Digest Analysis

Quick Take

"The strategy maintains significant underweight to overvalued US markets while overweighting underinvested opportunities in metals/mining, Japan, China, and small caps."

Executive Summary

Hosking Partners delivered 11% absolute net returns in Q3 2025, bringing year-to-date alpha to 6.1% versus MSCI AC World. The strategy benefits from global equity market broadening after a decade-plus of US leadership, with the US now at once-a-generation valuation extremes amid speculative excess in AI. The fund maintains a 30% underweight to the US versus benchmark, instead allocating to compelling opportunities in Japan, UK, and emerging markets where valuations are attractive and capital has been rationed. Key contributors included a 10.7% weight in metals and mining, capitalizing on supply constraints from over a decade of under-investment, particularly in Platinum Group Metals which rose 50% in the quarter. The strategy also benefits from revival in small- and mid-cap shares outside the US, with positions in companies like Saga and Sri Lankan equities delivering strong returns. Looking forward, the manager sees a long runway for continued broadening as investor attention migrates from concentrated US mega caps to underinvested, asset-heavy areas where returns on invested capital are improving while hyperscalers see declining returns from massive AI datacenter investments.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evident in concentrated positioning decisions like 30% US underweight, 10.7% metals allocation, and specific geographic tilts. The manager provides detailed rationale for capital cycle thesis and demonstrates strong conviction in broadening theme with specific examples and data points.

Growth Outlook

65%

BearishBullish

Bullish (65%)

The manager expresses strong optimism about global equity broadening and opportunities outside the US, describing a new regime for global stock markets and compelling opportunities in underinvested areas. However, this is tempered by concerns about US valuation extremes and AI speculation.

Risk Appetite

45%

DefensiveAggressive

Balanced (45%)

The strategy maintains significant active positioning with 30% underweight to US and concentrated bets in metals/mining and Japan, indicating moderate risk appetite. However, the approach is described as highly diversified with 380 stocks, suggesting measured rather than aggressive risk-taking.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

Moderate deployment activity with additions to chemicals and spirits buckets while trimming US financials. The strategy appears to be selectively adding to undervalued areas while harvesting gains from outperforming positions, indicating measured rather than aggressive deployment.

Forward Guidance

70%

CautiousExpansionary

Expansionary (70%)

The manager provides clear forward guidance about continuing to benefit from global equity broadening and sees a long runway for this trend. The tone suggests confidence in the positioning and strategy for capturing the broadening opportunity.

Language Signal

55%

BearishBullish

Balanced (55%)

Language contains balanced mix of opportunity-focused terms like compelling, attractive, and broadening, offset by risk-focused language around speculative excess, alarming concentration, and valuation extremes. Net positive but measured tone.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

High perceived risk evident in discussion of US valuation extremes, speculative excess in AI, alarming concentration levels, and systemic risk from hyperscaler concentration. The manager explicitly identifies multiple macro risks including capital cycle over-build and concentration concerns.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

Strong opportunity density described across multiple regions and sectors including Japan, China, metals/mining, small caps, and various underinvested areas. The manager identifies compelling opportunities across geographies and market cap spectrum, suggesting abundant opportunity set.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

Long-term orientation evident in capital cycle analysis, multi-year themes like Japan consolidation, and patient approach to underinvested sectors. The strategy focuses on structural trends and fundamental rerating over extended periods rather than short-term catalysts.