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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Easterly - Global Real Estate Fund 2025 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Easterly - Global Real Estate Fund)

Primary Source Intelligence • Q2 2025 Letter Analysis

Easterly - Global Real Estate Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Easterly - Global Real Estate Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+9.08%

YTD+11.35%

Annualized+6.52%

Positioning StanceCONSTRUCTIVE

GeographyEurope

Digest Analysis

Quick Take

"Focusing on businesses with >20% incremental returns on invested capital. Portfolio companies grew EBITA per share +14.8% through high-return reinvestment rather than leverage."

Executive Summary

The Compounding Tortoise delivered +5.64% in Q2 and +10.08% YTD (EUR), despite FX headwinds of 504 bps. The manager maintains a fully invested portfolio focused on sustainable quality compounding, emphasizing companies with high returns on incremental invested capital exceeding 20-25%. Portfolio companies achieved +14.8% EBITA per share growth driven by high incremental returns rather than financial engineering. The strategy centers on identifying businesses with strong free cash flow generation, rational capital allocation, and management teams that understand the ROIIC framework. Key risks include tariff uncertainty potentially causing recession and margin compression, plus unpredictable FX volatility. The manager published detailed analysis on Diploma's M&A strategy and continues developing case studies on quality compounders. Despite market volatility from April tariff concerns to subsequent rally, portfolio characteristics remain unchanged and positioned to compound capital at double-digit rates. The approach prioritizes long-term value creation over relative performance, focusing on businesses that can sustain high incremental returns on invested capital.

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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

68%

CautiousHigh

Moderate (68%)

Manager demonstrates moderate-high conviction through fully invested portfolio, specific discussion of individual holdings like Diploma, and clear articulation of investment framework around ROIIC >20-25%. However, the diversified approach and lack of explicit position sizing caps conviction below 0.75.

Growth Outlook

25%

BearishBullish

Bearish (25%)

Manager acknowledges tariff uncertainty and potential recession risks but maintains that portfolio characteristics remain highly attractive for double-digit compounding. Mixed signals with risk awareness balanced by confidence in long-term positioning.

Risk Appetite

75%

DefensiveAggressive

Aggressive (75%)

Portfolio remains fully invested with allocation mix changes during the quarter. Manager explicitly states they couldn't care less about relative performance and maintains conviction in their quality compounding approach despite market volatility.

Capital Deployment

10%

De-riskingDeploying

De-risking (10%)

Portfolio allocation mix changed during the quarter but remains fully invested. This represents rotation rather than net deployment or reduction of capital, indicating neutral to slight positive deployment activity.

Forward Guidance

50%

CautiousExpansionary

Neutral (50%)

Manager plans to continue current strategy with more deep dives and case studies. No explicit deployment or reduction signals, maintaining steady course with existing positioning and research publication schedule.

Language Signal

40%

BearishBullish

Balanced (40%)

Language includes both positive terms like 'excellent growth', 'highly attractive', 'strong ROIICs' and risk-focused language around tariff uncertainty, recession potential, and FX unpredictability. Slightly more cautious than bullish overall.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Manager acknowledges specific risks including tariff uncertainty, potential recession, margin compression, and FX volatility. However, these are mentioned as manageable concerns rather than systemic threats, with confidence maintained in long-term positioning.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Manager continues to find attractive opportunities within their quality compounding framework, publishing new deep dives and planning additional case studies. The focus on specific companies like Diploma and Lotus Bakeries suggests selective but available opportunities.

Time Horizon

80%

Short-TermLong-Term

Decade+ (80%)

Strong emphasis on long-term compounding with explicit focus on sustainable quality over multiple years. Manager states they 'couldn't care less about relative performance' and emphasizes not letting market ups and downs overshadow life's other joys, indicating patient capital approach.