1Q26 Partners Fund Commentary

Citations · 6

• “stocks in the portfolio that each detracted more than 50 basis points individually combined for a negative impact of over 650 basis points. However, the value per share decline for these stocks was less than 25 basis points in aggregate.”

  p#7 · confidence 95%

• “We ended the quarter with a P/V in the mid-50s%, a rare level for us that bodes well for absolute returns moving forward.”

  p#6 · confidence 95%

• “FEC delivered its most profitable peak holiday season ever, with margins expanding for a sixth consecutive quarter”

  p#12 · confidence 95%

• “operating margin in the core agricultural equipment business is forecast to decline from over 15% in 2023 to around 5% in 2026. 2026 is likely to be at or close to the cyclical trough”

  p#11 · confidence 95%

• “the company committed to $1.5 billion in share repurchase over the next 3 years, which equates to 33% of shares outstanding at today's price.”

  p#17 · confidence 95%

• “holding company discount widening to record levels. What has changed for the better, and what we believe the market is not crediting, is the quality and composition of what underpins the company: a record cash and liquidity position, €3.6 billion (more than 10% of NAV)”

  p#15 · confidence 95%