Zechariah Bin Zheng @FundManagerZech: "👋 Hello World 🧭 𝗦𝗼𝗺𝗲..."

Australia

👋 Hello World 🧭 𝗦𝗼𝗺𝗲 𝗧𝗵𝗶𝗻𝗴𝘀 𝗔𝗿𝗲 𝗙𝗹𝘆𝗶𝗻𝗴, 𝗢𝘁𝗵𝗲𝗿𝘀 𝗔𝗿𝗲 𝗝𝘂𝘀𝘁 𝗖𝗵𝗲𝗮𝗽 — 𝗔𝗻𝗱 𝗧𝗵𝗮𝘁’𝘀 𝗘𝘅𝗮𝗰𝘁𝗹𝘆 𝗛𝗼𝘄 𝗜 𝗟𝗶𝗸𝗲 𝗜𝘁 A LOT to cover this week — so I won’t cram it all into one post. I’ll touch on a few key updates now and go deeper over the coming weeks. 🧠 𝗧𝗟;𝗗𝗥 🏠 $VTY.L (Vistry Group PLC) (Vistry) surged 8%+ this week — we’re up 30–40% on entry and still holding long term 🛢️ ESSO.PA (Esso) trimmed — upside capped post-announcement, spread now less attractive 🇳🇴 $HAUTO.OL (Hoegh Autoliners ASA) (Höegh Autoliners) entered — exciting setup, watching concentration 🪙 Silver & ETH moving — we have exposure, but they’re not core bets 🧱 $PGRE (Paramount Group Inc) (Paramount Group) bought at 0.3x book — now exploring strategic options (possible asset sale) 🚘 $PAH3.DE (Porsche Automobil Holding SE) (Porsche SE) classic value trap — we’re patient, but not adding without a catalyst 📈 Quick Portfolio Highlights 🛢️ ESSO.PA (Esso S.A.F.) — still a great company, but I’ve trimmed slightly. While thesis is strong, the upside is limited to the merger spread and anything below 5ish% is not interesting. More on this later. 🇳🇴 $HAUTO.OL (Hoegh Autoliners ASA) (Höegh Autoliners) — I’ve started buying, and there are more Oslo-listed names on my radar that look very exciting. That said, I’m watching concentration risk, but some of these setups are too attractive to ignore. 🪙 Silver & Precious Metals — Flying lately. We have exposure, but I’m not overly bullish. It’s there more as a hedge than a conviction trade. 🌐 Ethereum ($ETH) — It’s moving. I’m optimistic, but keeping it as a smaller position for now. Not every rally is worth chasing. _____________________________________________ 🏠 $𝗩𝗧𝗬.𝗟 (𝗩𝗶𝘀𝘁𝗿𝘆 𝗚𝗿𝗼𝘂𝗽) — 𝗪𝗵𝘆 𝗜𝘁’𝘀 𝗨𝗽, 𝗮𝗻𝗱 𝗪𝗵𝘆 𝗪𝗲’𝗿𝗲 𝗦𝘁𝗶𝗹𝗹 𝗜𝗻 Vistry $VTY.L (Vistry Group PLC) has had a fantastic week — shares are up 8%+ today as of writing. According to Investing.com, the company: Expects FY profit to hit the top end of guidance Benefits from strong demand in the affordable housing sector Is seeing success with its asset-light partnership model We bought this when tariff-related panic caused a temporary sell-off — and we’re now up 30–40% on entry. But even after this rally, I still see more upside: The UK housing crisis won’t be solved overnight Vistry’s model allows it to scale without heavy capital investment Fundamentals are solid, and the stock isn’t expensive This will remain a core holding in the portfolio for the foreseeable future. _____________________________________________ 📚 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗦𝘁𝘆𝗹𝗲: 𝗕𝗼𝗼𝗸 𝗩𝗮𝗹𝘂𝗲 & 𝗔𝘀𝘀𝗲𝘁-𝗕𝗮𝗰𝗸𝗲𝗱 𝗩𝗮𝗹𝘂𝗲 Last week, I talked about value investing through low P/E ratios — buying companies that generate strong earnings for cheap. But another classic method is book value investing — where instead of focusing on earnings, you look at what the company owns (its assets). 🏢 $PGRE (Paramount Group Inc) (Paramount Group) — Buying $1 of Assets for $0.30 We picked this up at around 0.3x book value — meaning we paid 30 cents for every $1 of assets. This contrast with $NVDA (NVIDIA Corporation) that has a price book of 41.51. So you are paying $41 for every $1 of assets the company owns. Not quite the same because of the business models, but the contrast is clear. Why was it so cheap? The company is loss-making from a PE not FFO perspective Sentiment around Seattle office space is negative But that’s exactly what gave us an opportunity. We ran stress tests (including 2008-style downside) on the real estate — and found the market was overreacting. Now, because the assets are so attractively priced, $PGRE (Paramount Group Inc) is exploring strategic options. That usually signals a potential sale or asset realization, which could unlock the full value of the portfolio. That said — book value investing without a catalyst can be risky. It’s easy to fall into what we call a value trap, where the stock stays cheap indefinitely. 🚘 $𝗣𝗔𝗛𝟯.𝗗𝗘 (𝗣𝗼𝗿𝘀𝗰𝗵𝗲 𝗦𝗘) — 𝗔 𝗧𝗲𝘅𝘁𝗯𝗼𝗼𝗸 𝗩𝗮𝗹𝘂𝗲 𝗧𝗿𝗮𝗽? This is a holding company that owns major stakes in Volkswagen and Porsche AG, yet trades far below the value of its holdings. It looks great on paper… But the reality is — we’ve been waiting for a catalyst that hasn’t come. We’re still holding: It pays a dividend It trades at a low multiple → So it’s still a decent risk-reward But I’m not looking to add more right now. Without a near-term trigger, there’s a cost to holding — in the form of portfolio drag. _____________________________________________ Stay tuned for more updates and sharing next week