Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Farrer 36 Asset Management. This analysis is provided for institutional research purposes only and is not investment advice.
"Concentrated portfolio with top five positions at 70% weight, reflecting high conviction in Sea Limited's e-commerce dominance, eDreams' travel recovery, Evolution's gaming leadership, Google's cloud growth, and Apollo's private credit expansion. Added Franco-Nevada gold royalty position for portfolio diversification."
Farrer Wealth maintains a concentrated portfolio approach with top five positions now comprising nearly 70% of assets, reflecting increased conviction in core holdings amid market volatility. The manager has become less forgiving of loss-making positions, cutting underperformers like Basic-Fit and Howden Joinery while adding Franco-Nevada as a gold royalty play. Key holdings include Sea Limited benefiting from continued e-commerce growth in Southeast Asia, eDreams ODIGEO capitalizing on resilient leisure travel demand, Evolution maintaining leadership in live casino gaming, Google trading at a discount to tech peers despite strong cloud growth, and Apollo positioned for private credit and annuity growth. The portfolio faces headwinds from tariff uncertainty under the Trump administration, though the manager emphasizes that market dislocations can change rapidly. Risk management includes tactical use of cash, hedges, and gold exposure to smooth volatility. Despite ongoing underperformance since inception, the manager expresses confidence in current positioning and aims for strong relative returns, viewing current market conditions as creating attractive opportunities not seen since 2022.
Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.
Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
Very high conviction evidenced by 70% concentration in top five positions, detailed fundamental analysis of each holding, and decisive action to cut underperformers. Manager provides specific catalysts and growth drivers for each major position.
Growth Outlook
Manager acknowledges macro uncertainty and tariff chaos but expresses confidence that core holdings should perform nicely over next several quarters. Mixed view with cautious optimism about specific opportunities despite broader market challenges.
Risk Appetite
Portfolio is highly concentrated with top 5 positions at 70%, indicating aggressive positioning. However, manager is using tactical hedges, cash, and gold exposure to smooth volatility, suggesting moderate risk management overlay on concentrated bets.
Capital Deployment
Manager is selectively deploying capital by adding Franco-Nevada position and reallocating from sold positions, but also maintaining tactical cash and hedges. Growing watch list suggests preparation for deployment but measured approach given uncertainty.
Forward Guidance
Manager explicitly states aim to deliver strong relative returns this calendar year and expresses confidence about core holdings performing well. Actively cutting losers and reallocating to winners, with growing watch list for new opportunities.
Language Signal
Language shows measured optimism with phrases like 'should perform nicely' and 'remain confident' balanced against acknowledgment of 'continued underperformance' and 'highly uncertain' macro conditions. Net positive but cautious tone.
Perceived Risk
Manager explicitly acknowledges tariff uncertainty as chaotic and confusing, macro weakness impacting various sectors, and regulatory risks for Google. Uses tactical hedging and gold exposure specifically to manage perceived risks.
Opportunity Density
Manager notes that watch list has grown significantly with valuations not seen since 2022 drawdown, suggesting abundant opportunities emerging from market dislocations. Selective but optimistic about finding better investments.
Time Horizon
Focus on long-term outperformance over time through bottom-up research, with detailed multi-year growth projections for holdings. Emphasis on businesses that will compound over several quarters rather than short-term catalysts.
