Nov. 11, 2025 11:20 PM ET
Summary
- The Portfolio* appreciated +3.0% (net of fees) year-to-date through 9/30/25.
- During the quarter, we harvested gains from Large Financials, exiting our position in First Horizon and trimming Regions.
- Recent proceeds were reinvested into in the payment technology and biopharma sectors.
- By concentrating on what we can control — our research process and decision-making framework — we maximize the odds of achieving favorable outcomes and superior long-term results.
KanawatTH/iStock via Getty Images
Dear Investors,
The Portfolio* appreciated +3.0% (net of fees) year-to-date through 9/30/25.
Since inception, Marram has generated +603.5% cumulat…
Nov. 11, 2025 11:20 PM ET
Summary
- The Portfolio* appreciated +3.0% (net of fees) year-to-date through 9/30/25.
- During the quarter, we harvested gains from Large Financials, exiting our position in First Horizon and trimming Regions.
- Recent proceeds were reinvested into in the payment technology and biopharma sectors.
- By concentrating on what we can control — our research process and decision-making framework — we maximize the odds of achieving favorable outcomes and superior long-term results.
KanawatTH/iStock via Getty Images
Dear Investors,
The Portfolio* appreciated +3.0% (net of fees) year-to-date through 9/30/25.
Since inception, Marram has generated +603.5% cumulative return and +14.1% annualized return, net of fees.
For monthly details, see Historical Performance Returns* at the end of this letter. Also, please refer to your separate account statement for exact account return figures.
$1,000,000 Investment in Marram (Net Return, Inception 1/1/2011 to 9/30/2025)*
ABOUT MARRAM
Marram is an outsourced long-term investment solution, focused on growing wealth for retirement or legacy purposes. We began as a service for a small circle of friends and family. Our investor-friendly fee structure (lower than hedge funds), terms (separate accounts, no lock-up), and high standards of care and excellence, reflect those origins. Our portfolio manager has the majority of her family’s liquid net worth invested in the same strategy – we eat our own cooking – ensuring that we shepherd your investment with the utmost care, as we would our own.
| OUR GOAL: | PHILOSOPHY: | STRATEGY: | IMPLEMENTATION METHOD: | RESULT: |
|---|---|---|---|---|
| To compound (GROW) capital over time | ||||
| Patient Opportunism | ||||
| Buy cheap assets (when available)• Hold cash when there are no cheap assets• Hedge the portfolio when appropriate• Think opportunistically and creatively | ||||
| • Utilize any security or asset that offers superior risk reward, with a preference for liquidity | ||||
| • Outsourced wealth compounding solution for investors whose primary goal is to grow money over time |
Portfolio Allocations
Below is the target portfolio allocation – the optimal allocation as of the writing of this letter. Investor separate accounts may differ from this allocation due to changes in asset prices, availability to acquire/divest securities in the marketplace, margin & trading capabilities, and tax considerations. Over time, all investor separate accounts converge upon the target portfolio allocation.
- Energy Infrastructure / Master Limited Partnerships (MLPs): 26% NAV Energy infrastructure companies with assets indispensable to the smooth function of modern society. These investments were made in early 2020, taking advantage of commodity price volatility, shareholder turnover, forced selling, and uncertainty related to the long-term demand of fossil fuels which drove prices to extremely low levels. Since then, geopolitical strife, inflation, and increased recognition of the limitations of renewable energy have led market participants to reembrace fossil fuels, which in turn has lifted the prices of our MLPs. The size of this allocation peaked at 42% of NAV in late-2021, and has gradually declined due to harvested gains, trimmed exposures, and M&A activity. MLPs remain a cornerstone of our portfolio given favorable industry demand dynamics, stable cash flows, conservative balance sheets, reasonable valuations (at ~10x th Cash Flow), generous cash distributions, and inflation protection. See our 2019 4 Quarter and 2021 2 Quarter Letters for our MLP investment thesis.
- Large-Cap Financials: 18% NAV In March 2023, during the brief U.S. banking crisis, the prices of large regional banks fell precipitously as investors indiscriminately sold shares, allowing us to significantly increase our exposure at fire-sale prices. Since then, our regional bank investments have increased significantly in value since then, returning on average 31% IRR. While we continue to view the sector favorably over the long term given its ability to generate steady profits of ~10%+ annually, unrealized securities losses have reversed, valuations have expanded, and we are observing a gradual easing in credit underwriting standards across the industry. Therefore, we prudently moderated our exposure over the past 15 months, exiting some investments earlier than originally intend. See our 2023 1 Quarter Letter for our Regional Bank investment thesis.
- Payments, Financial, and Technology Software: 18% NAV Fast-growing payments, financial, and technology software businesses with favorable revenue tail winds, operating in areas with vast untapped total addressable markets, generating cash profits, actively reinvesting profits back into the business at high incremental margins, and self-funding future growth with little/no equity dilution. We purchased these investments at attractive prices that will generate at least 3X return in 5 years based on reasonable topline growth & margin assumptions. See our 2022 1 Quarter Letter for more details.
- Biopharma: 7% NAV The biopharma sector is deeply out of favor, weighed down by political and other factors that have led to lower industry $ R&D spend. Taking a long-term view, we believe society will continue to need (and demand) new drugs and other health innovations (obesity treatments, next-generation vaccines & therapeutics, medical/diagnostic devices, and cosmetic enhancements, etc.), all of which requires data collection, rigorous testing, and regulatory validation prior to mass market rollout. With time, we believe capital will return to the sector and industry $ R&D spend will reaccelerate. We initiated basket diversified allocation via ETFs and service-based businesses that facilitate data generation, clinical trial design/ implementation, and regulatory navigation. Thereby gaining exposure to recovery of industry $ R&D spend from cyclical lows while minimizing adverse outcomes tied to individual drug development.
- Cash & Cash Equivalents: 31% NAV This category will fluctuate depending on investment opportunities available in the marketplace. We collect ~4% interest and dividends per year which continuously replenishes our cash balance.
Portfolio Return* Analysis & Future Positioning
The Portfolio* return +0.7% (NET) in the 3rd quarter, bringing our year-to-date (YTD) return to +3.0%.
Large Financials and Energy Infrastructure investments were solid contributors to performance this year. However, our Payment Technology investments declined on average ~20% YTD, creating a meaningful drag on overall returns. We purchased more PayPal (PYPL) and Shift4 (FOUR) at attractive valuations.
Our Payments Technology basket is composed of businesses with exceptional long-term upside potential. These are enduring investments that should be evaluated over years, not quarters, as their value compounds gradually through innovation and scale. Built on modern technology stacks and led by forward-thinking management teams, these businesses are steadily taking share from legacy incumbents (by helping their customers, both businesses and consumers, operate and transact more efficiently, rapidly, and affordably) while also benefiting from secular growth in digital transactions and the tailwinds of inflation. In the years ahead, they are positioned to deliver sustained revenue growth and operating leverage thanks to higher $ payment volumes piped over mostly fixed infrastructure costs.
During the quarter, we harvested gains from Large Financials, exiting our position in First Horizon (FHN) and trimming Regions (RF). We began decreasing exposure over a year ago, lowering our total allocation from 37% NAV in 2Q24 to 18% NAV today. Since March 2023, our regional bank investments have return on ~31% IRR on average. We are exiting some names earlier than originally intend because, while we continue to view the sector favorably given its ability to generate steady profits of ~10%+ annually, valuations have expanded, and we are observing a gradual easing in credit underwriting standards across the industry. Therefore, we have prudently moderated our exposure over the past 15 months. Recent proceeds were reinvested into in the payment technology and biopharma sectors.
New Basket Allocation: Biopharma
The biopharma sector is deeply out of favor, weighed down by political scrutiny over drug pricing, research funding cuts, uncertainty around FDA regulatory approval frameworks, post-pandemic normalization in healthcare spending, lackluster investment performance in the past 3 years, higher cost of capital, and shift of venture funding away to other areas like AI. All of this has led to lower total industry $ R&D spend, valuations, and investor interest.
Taking a long-term view, we believe society will continue to need (and demand) new drugs, therapeutics, medical devices, and other health innovations, such as obesity treatments, next-generation vaccines & therapeutics, medical/diagnostic devices, and cosmetic enhancements — all of which require data collection, rigorous testing, and regulatory validation prior to mass market rollout. With time, we believe capital will return to the sector and industry $ R&D spend will reaccelerate.
During the quarter, we initiated a 7% NAV basket allocation through two biopharma ETFs, one contract research organization (CRO) trading at 8% free cash flow yield, and two bio-simulation software companies at ~5% free cash flow yield, on currently depressed total industry $ R&D spend. By diversifying across ETFs and service-based businesses that facilitate data generation, clinical trial design / implementation, and regulatory navigation, we gain exposure to recovery from cyclical lows while minimizing adverse outcomes tied to individual drug development.
Process Over Outcome
In investing, as in life, it is unproductive to fixate on factors outside of our direct control, such as the behavior of other market participants, daily price fluctuations, or the vagaries of luck. Instead, we focus our brainpower on what we can directly control: the process by which we invest. A consistently disciplined investment process is the foundation for long-term success. We cannot dictate what others pay for assets or how security prices move in the marketplace, but we can determine which businesses we want to own, the prices we are willing to pay, and whether we have the cash liquidity to act when opportunities arise.
| | Good Outcome | Bad Outcome | Good Process | Bad Process | | | ———— | ———– | ———— | ———– | | Deserved Success | Bad Break | | Dumb Luck | Poetic Justice |
Guided by our process, we have compiled an extensive “wishlist” of businesses that we would like to own and the corresponding prices when we would eagerly buy them. Our ongoing research efforts – drawing from SEC filings, earnings reports, presentations, management interviews, trade publications and books across a wide range of subjects – ensures that this wishlist is continuously expanding and refined as we identify new opportunities and revisit prior ideas with fresh perspectives.
By concentrating on what we can control — our research process and decision-making framework — we maximize the odds of achieving favorable outcomes and superior long-term results. The compounding nature of investment knowledge and experience further tilts the odds in our favor. Each passing year sharpens our ability to recognize insights not yet appreciated or priced by the market, allowing us to act decisively when opportunity emerges. Combining a well-established base of expertise with broad curiosity, a persistent search for new knowledge, and balanced mental equanimity, we are well positioned to capitalize on future opportunities whenever and wherever they emerge.
Marram Book Club
If you’re looking for enjoyable reading (and unconventional wisdom), these books will alter your perception of the visible and invisible world that surrounds us.
Please do not hesitate to reach out with any questions. As always, thank you for your trust. We look forward to continuing our capital compounding adventures in the years ahead.
Yours very truly,
**Vivian Y. Chen, CFA | ****Portfolio Manager | **Marram Investment Management
APPENDIX: HISTORICAL PERFORMANCE RETURNS (NET OF FEES)*
| Calendar Year | Marram (Net of Fees) | S&P 500 (Total Return) | % Difference |
|---|---|---|---|
| 2011 | 22.3% | 2.1% | +20.2% |
| 2012 | 34.7% | 16.0% | +18.7% |
| 2013 | 27.3% | 32.4% | -5.1% |
| 2014 | 13.3% | 13.7% | -0.4% |
| 2015 | -9.1% | 1.4% | -10.5% |
| 2016 | 38.5% | 12.0% | +26.6% |
| 2017 | 22.1% | 21.8% | +0.3% |
| 2018 | -17.3% | -4.4% | -12.9% |
| 2019 | -1.7% | 31.5% | -33.2% |
| 2020 | 23.7% | 18.4% | +5.3% |
| 2021 | 34.0% | 28.7% | +5.3% |
| 2022 | 3.2% | -18.1% | +21.3% |
| 2023 | 12.9% | 26.3% | -13.4% |
| 2024 | 19.0% | 25.0% | -6.0% |
| 2025 YTD | 3.0% | 14.8% | -11.8% |
| Cumulative Return % | 603.5% | 601.3% | +2.2% |
| Annualized Return % | 14.1% | 14.1% | +0.0% |
* Unaudited, net return figure calculation assumes 2% per annum management fee, pro-rated and deducted monthly from performance of the portfolio manager’s taxable separate account which does not pay management or performance fees. This separate account most accurately reflects the long-term investment strategy of Marram Investment Management. Remaining separate accounts were purposefully omitted as they may deviate from the strategy due to fee structure, custodial & trading expenses, fund transfer & order timing, margin & trading capabilities, tax considerations, and other account restrictions. Returns for each separate account may differ. Please refer to your account statements for actual net return figures.
Returns presented for S&P 500 include dividend reinvestment. While the S&P 500 is a well-known and widely recognized index, the index has not been selected to represent an appropriate benchmark for Marram’s investment strategy whose holdings, performance and volatility may differ significantly from the securities that comprise the index. Investors cannot invest directly in an index (although one can invest in an index fund designed to closely track such index).
Historical performance is not indicative of future results. An investment is speculative and involves a high degree of risk and possible loss of principal capital. All information presented herein is for informational purposes only. No investor or prospective investor should assume that any such discussion serves as the receipt of personalized advice from Marram. Investors are urged to consult a professional advisor regarding the possible economic, tax, legal or other consequences of entering into any investments or transactions described herein.
A list of all recommendations made by Marram within the immediately preceding period of not less than one year is available upon request. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on this list. Specific companies or securities shown are meant to demonstrate Marram’s investment style and the types of companies, industries, and instruments in which we invest, and are not selected based on past performance. The analyses and conclusions include certain statements, assumptions, estimates and projections that reflect various assumptions by Marram concerning anticipated results that are inherently subject to significant economic, competitive, and other uncertainties and contingencies, and have been included solely for illustrative purposes. No representations, express or implied, are made as to the accuracy or completeness of such statements, assumptions, estimates or projections, or with respect to any other materials herein.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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