Zechariah Bin Zheng @FundManagerZech: "𝗨𝗽𝗱𝗮𝘁𝗲: 🚨 𝗪𝗲 𝗚𝗼𝘁 𝗜𝘁..."

Australia

𝗨𝗽𝗱𝗮𝘁𝗲: 🚨 𝗪𝗲 𝗚𝗼𝘁 𝗜𝘁 𝗦𝗼 𝗥𝗶𝗴𝗵𝘁, 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗦𝘁𝗲𝗽𝗽𝗲𝗱 𝗜𝗻 + 𝗦𝘂𝗿𝘃𝗲𝘆 𝗥𝗲𝘀𝘂𝗹𝘁𝘀 ____________________________________________________ 🧠 𝗧𝗟;𝗗𝗥 - Our poll shows most of you value my 9-year track record & returns the most ✅ - I explain why drawdowns hurt more than gains help, and why I stay cautious - Despite bearish headlines, the market is breakeven — which is hard to digest - One of our largest positions, Esso S.A.F., just proved our thesis right — private equity is buying in, and I’ve added more ____________________________________________________ 📊 𝗣𝗼𝗹𝗹 𝗥𝗲𝘀𝘂𝗹𝘁𝘀 𝗔𝗿𝗲 𝗜𝗻 Thanks for the ~250 responses to last week's poll! I intentionally didn't tag any assets so we could get the most from our community. It’s clear: 59.7% of you value my 9-year track record & returns the most. That’s more than half — and I truly appreciate the support and feedback. It helps me continue to refine how I communicate the portfolio for all of you. ____________________________________________________ 📉 𝗧𝗵𝗲 𝗠𝗮𝘁𝗵 𝗼𝗳 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 (𝗔𝗻𝗱 𝗪𝗵𝘆 𝗜 𝗦𝘁𝗮𝘆 𝗖𝗼𝗻𝘀𝗲𝗿𝘃𝗮𝘁𝗶𝘃𝗲) 1️⃣ 𝗗𝗿𝗮𝘄𝗱𝗼𝘄𝗻𝘀 𝗵𝘂𝗿𝘁 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗴𝗮𝗶𝗻𝘀 𝗵𝗲𝗹𝗽 During COVID, I had to pull funds from my own account. Pay cut, my wife between jobs — real life kicked in. We often say “buy the dip” — but in reality, when markets crash, that’s exactly when people need money most. That’s why I: - Keep risk controlled - Hold more cash than most - Aim to do the buying so my copiers don’t need to think about topping up in a downturn 2️⃣ 𝗟𝗼𝘀𝘀𝗲𝘀 𝗮𝗿𝗲 𝗻𝗼𝘁 𝘀𝘆𝗺𝗺𝗲𝘁𝗿𝗶𝗰𝗮𝗹 Lose 50%, need 100% to recover Even if you gain first and lose later — still back at square one That’s why I always aim for asymmetric risk/reward — not just high returns, but high returns relative to risk. 😵‍💫 𝗥𝗶𝗴𝗵𝘁 𝗡𝗼𝘄: 𝗜𝘁’𝘀 𝗛𝗮𝗿𝗱 𝘁𝗼 𝗗𝗶𝗴𝗲𝘀𝘁 Despite listening to nothing but negative macro podcasts lately — High US interest rates, excessive deficit spending, crazy valuations, and extreme exposure to US mega caps — the market is somehow still breakeven year-to-date. It’s confusing, and that’s exactly why I’m trimming exposure where needed. 📉 I’ve sold names like MongoDB to reduce risk. 🇺🇸 US valuations feel stretched. $SPX500 (SPX500 Index (Non Expiry)) $DJ30 (DJ30 Index (Non Expiry)) 🇪🇺 Europe? I’m not bullish broadly — but still confident in mispriced names like Vistry. In this environment, we’re staying laser-focused on: Cash-flowing businesses Real (not hyped) growth potential Disciplined sizing and entry ____________________________________________________ 💼 𝗘𝘀𝘀𝗼 𝗦.𝗔.𝗙. — 𝗪𝗵𝗲𝗻 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗘𝗾𝘂𝗶𝘁𝘆 𝗖𝗼𝗻𝗳𝗶𝗿𝗺𝘀 𝘁𝗵𝗲 𝗧𝗿𝗮𝗱𝗲 This is one of our largest positions — and it just proved itself. 📰 ExxonMobil $XOM (Exxon-Mobil) announced it's selling its 82.89% stake in Esso S.A.F. $ES.PA (Esso Societe Anonyme Francaise SA) to North Atlantic France, a Canadian PE-backed buyer. 🔍 Deal Terms: Special distribution: €63.36/share Post-distribution price: €32.83/share Effective valuation: €96.19/share Deal closes Q4 2025 **𝑴𝒂𝒏𝒅𝒂𝒕𝒐𝒓𝒚 𝒕𝒂𝒌𝒆𝒐𝒗𝒆𝒓 𝒃𝒊𝒅 𝒊𝒏 𝗤𝟭 𝟮𝟬𝟮𝟲 (𝒂𝒔 𝒑𝒆𝒓 𝑭𝒓𝒆𝒏𝒄𝒉 𝒍𝒂𝒘)** 📉 𝗪𝗵𝘆 𝘁𝗵𝗲 𝗦𝘁𝗼𝗰𝗸 𝗗𝗿𝗼𝗽𝗽𝗲𝗱 ~𝟭𝟬%: Implied valuation is seen as low, given Esso’s cash-rich balance sheet Investors may have expected a better premium for the core business New ownership brings strategy and visibility risks Potential for lower liquidity post-Exxon exit ✅ 𝗕𝘂𝘁 𝗵𝗲𝗿𝗲’𝘀 𝘄𝗵𝘆 𝗜’𝗺 𝗮𝗱𝗱𝗶𝗻𝗴: The thesis was right — and now private equity is validating it The mandatory bid gives us an optional exit later I believe the final buyout price could be higher once dust settles So yes — the market dropped the ball here. But I used the dip to buy more. Sometimes, it really pays to be early. I will try and share more next week ____________________________________________________ 🙏 As always, thank you for trusting me. We stay patient, we stay disciplined — and we keep hunting for the next mispriced opportunity.

4 Mentioned

SPX500

DJ30

XOM

Exxon-Mobil

ES.PA

Esso Societe Anonyme Francaise SA

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