Investor Letters

Palm Harbour Capital

palmharbourcapital.com

Fund Commentary July 2026 Palm Harbour Global Value Fund benefited from Youngone's activist pressure, Vår Energi's merger with BlueNord, and a rotation toward stable, high-yield businesses that supported Samyung Trading. Vitzrocell faced margin pressure and profit-taking, while FNGuide fell amid a Korean leverage washout. Vivendi declined after a court ruling and weaker UMG subscription growth. July 2026 +2.7% 002810 064850 $135M082920 $997M111770 $2.4B
Letter 2026 Q2 | 687 KB Palm Harbour Capital criticized leveraged single-stock ETFs and passive flows while retaining a value discipline focused on inexpensive cash-generative businesses. It outlined Norma’s capital return, exited BW Energy and M Dias Branco, and argued that Louis Hachette and Lagardère offer material value through a simpler ownership structure. second quarter +4.7% ALHG $2.1B082920 $997M0NFS 0OIY $1.7B
Q4 2024 Letter Palm Harbour Capital added Compagnie de l’Odet, a Spanish copper miner and a Korean rice-cooker maker, while exiting H&T, OVS and DNO. The portfolio argues that Odet’s convoluted Bolloré cross-holding structure materially understates its underlying assets and that simplification could unlock value, while warning that US speculation and fiscal-policy risk have raised the cost of risk. fourth quarter — FCODF $6.5B0FHO delisted0NFS BOIVF $12B
Q3 2024 Letter Palm Harbour Capital sold Everi, PAX and Unieuro following takeover developments and deteriorating fundamentals, while building a position in M Dias Branco around operational reforms and margin recovery. The portfolio argues that OCI asset sales, IGT’s Apollo transaction and Ocean Wilson’s strategic review can unlock substantial value. third quarter — 0ROF delistedDNIYY $4.2BEVRI delistedGBSMF delisted
Letter 2024 Q2 | 542 KB Palm Harbour Capital maintained a contrarian value stance against megacap AI enthusiasm and pressed SK Kaken to improve capital allocation and investor relations. The fund introduced Piraeus Port Authority as a competitively advantaged, cash-rich port operator nearing the end of its investment programme, with scope for larger dividends. second quarter — 0FHO delisted0OIY $1.7BDLTTF delistedGBSMF delisted
Letter 2024 Q1 Palm Harbour Capital purchased Piraeus Port Authority, citing its cash generation, balance sheet and capacity expansion, while selling two undisclosed positions after operational problems worsened. The portfolio case centers on discounts at Ocean Wilsons, Japanese cash-rich companies and International Games Technology, where a planned Everi merger is expected to separate the lottery business despite added execution and concession risks. first quarter — GHTI 0FHO delisted0NV0 0ONR delisted
Q4 2023 Letter Palm Harbour Capital expanded its Japanese basket on expectations that exchange-led capital-allocation reforms will unlock corporate cash and improve shareholder returns. The fund exited C Uyemura, Bayer and several smaller positions, while retaining both Solvay and Syensqo after their separation and adding to OCI amid its asset-sale programme. fourth quarter — SOLB $3.2BSYENS $9.6B4966 $2BBAYZF $55B
Q3 2023 Letter Palm Harbour Capital sold Avid Technology after its private-equity acquisition and exited Stora Enso over a weaker pulp outlook, while reducing C. Uyemura and Verallia after strength. It backs Telekom Austria’s tower spin-off, OCI’s fertilizer assets and Ocean Wilsons’ strategic review as routes to value realization. third quarter — OCWSF delisted0NFS 0R5R 4966 $2B