Performance and Net Asset Value - The Dynasty Trust NAV increased by 1.6% in the September quarter, with a net asset value per unit of $1.3335 as of September 30, 2025 [2] - The quarterly return was 1.63%, while the rolling 12-month return was 19.28% [2] - The trust's performance is expected to lag behind wider indices in markets driven by surplus liquidity and short-term ideas [2] Company Contributions - Two companies discussed had strong long-term track records but were negative contributors in the quarter due to share price de-rating [3] - Bolloré experienced a €1.2 billion de-rating over the past year, attributed to investor impatience and self-inflicted issues [3] - Exor also faced de-rating despite strong capital management, influenced by bearish scenarios related to US tariffs on significant investee companies [3] Portfolio Adjustments - The trust exited positions in Catapult International, Sportradar, Harworth Group, and Borr Drilling, while adding DGL Group, a chemical distribution company [4] - DGL Group's shares were acquired at a price below 10x P/E and 60% of tangible book value, despite recent profit declines [4] Major Contributors and Detractors - Positive contributors to quarterly returns included Borr Drilling and Carlyle Group, while negative contributors included Virtu Financial and Novo Nordisk [5] - The strength of the Australian dollar reduced returns by approximately 80 basis points [5] Cash Position - The trust maintained a net cash weighting of around 6% after all accruals at the end of the quarter [6] Value Traps and Loss Reserving - The discussion on value traps highlighted Bolloré, Exor, and Swatch Group as securities trading at significant discounts to intrinsic value, but with potential for future performance [7] - The analysis emphasized the importance of understanding the price-value gap and the potential for value realization [10] Bolloré's Performance - Bolloré shares fell 19.5% over the past year, resulting in a €1.3 billion capital loss, despite the value of Universal Music Group shares remaining stable [27] - The company faced challenges including high costs, low customer experience investment, and significant transfer fees without on-field success [25] Exor's Holdings and Performance - Exor's NAV growth has been strong, with a 17.1% compound growth over 16.5 years, but it trades at a significant discount to NAV [36] - The company has engaged in substantial share buybacks, reducing share capital significantly [39] - Exor's holdings include major investments in Ferrari, Stellantis, and CNH, which are currently facing structural challenges [43][44] Institut Mérieux and Other Investments - Exor's stake in Institut Mérieux is primarily valued through its holding in bioMérieux, which is highly profitable [50] - The acquisition of Bureau Veritas' food testing business by Mérieux NutriSciences is expected to enhance value significantly [53] The Economist Stake - Exor's stake in The Economist presents a potential dilemma regarding future control and ownership dynamics, especially with the aging "A" shareholder block [62] - The financial performance of The Economist has shown modest growth, with a static operating profit over the years [60]

Swatch will hike its prices in the United States by between 5% and 15% after the 39% tariff President Donald Trump imposed on Switzerland last month, the Swiss watchmaker's Chief Executive Nick Hayek said in a newspaper interview. ...