Saga Portfolio's 2025 Annual Insights: Outperformance, Philosophy, and Case Studies
The Saga Portfolio delivered a robust 44.2% net return in 2025, significantly outpacing the S&P 500's 17.9%. Since its inception in 2017, the portfolio has achieved an impressive cumulative return of 417.9%, showcasing a consistent ability to generate alpha. This annual letter delves into the investment philosophy that underpins these results, emphasizing a long-term, fundamentals-driven approach focused on identifying resilient businesses with strong causal explanations for value creation. It also presents insightful case studies of Carvana and GoodRx, illustrating the practical application of this framework in navigating market volatility and making informed investment decisions. The letter reflects on nine years of portfolio management, highlighting the challenges of outperforming the market and the advantages of an unconstrained, conviction-based investment strategy.