Orbis Investment Management (U.S.), L.P.

Orbis Investment Management is a global, independently owned asset manager founded in 1989 by Allan W. B. Gray. The group is headquartered in Bermuda with investment and client-service offices in key financial centers including San Francisco, London, and Hong Kong. Orbis has built its reputation on contrarian, valuation-driven equity investing, implemented through a suite of global, regional, and U.S. equity strategies for institutional and sophisticated investors. Orbis Investment Management (U.S.), L.P., based in San Francisco, is the U.S. advisory entity within the group and is registered with the U.S. Securities and Exchange Commission as an investment adviser. The U.S. platform manages and advises on mandates for North American institutions and intermediaries, typically via separate accounts and participation in Orbis-branded funds. Strategies span global equity, international equity, and dedicated U.S. equity portfolios, all run under the firm’s long-term, high-conviction philosophy. The firm files Form 13F with the SEC under CIK 0001598147. These filings disclose Orbis Investment Management (U.S.), L.P.’s reportable long positions in U.S.-listed equities and certain equity-like securities over which it has investment discretion. The 13F reports do not include non-U.S.-listed holdings, derivatives, cash, or any short positions that may be present in some mandates. When organized into a continuous 13F History, these disclosures support reconstruction of a notional long U.S. equity sleeve at each quarter-end. That sleeve provides the factual basis for examining the firm’s disclosed 13F Portfolio Composition and deriving an indicative Historical Track Record for the part of its activity that is visible via U.S. public filings.

Orbis Investment Management (U.S.), L.P. applies the Orbis group’s core investment philosophy: fundamental, contrarian, and valuation-driven stock selection with a long-term horizon. The process is research-intensive and benchmark-agnostic, seeking to exploit mispricings created by short-termism, behavioral biases, and index-driven capital flows. Key elements of the approach include: - Bottom-up fundamental analysis: Sector-specialist investment teams evaluate business quality, balance sheet strength, competitive positioning, management alignment, and long-term cash-flow prospects. Valuation is assessed using multiple lenses (e.g., normalized earnings, free cash flow, asset values) to estimate intrinsic value. - Contrarian positioning: Orbis is willing to buy into unpopular, out-of-favor companies and sectors when the research suggests that pessimism is excessive and long-term value is compelling. Conversely, the firm typically underweights or avoids crowded, expensive growth names, even when they dominate benchmarks. - High active share and tracking-error tolerance: Portfolios are constructed with significant deviations from conventional indices, reflecting independent research views rather than index weights. Benchmark awareness informs risk management but does not dictate position sizing or security selection. In U.S. and global equity portfolios, this philosophy translates into diversified but distinctly non-index portfolios containing a concentrated set of high-conviction positions. Sector allocations are a by-product of stock selection; they may tilt toward cyclicals and financials when these are cheap, or toward more defensive areas when valuations and fundamentals dictate, but there is no structural sector bias. The 13F-reported book for Orbis Investment Management (U.S.), L.P. typically shows: - Exposure across a broad range of U.S. industries and, where applicable, U.S.-listed ADRs of non-U.S. companies. - Position sizes that reflect conviction and perceived mispricing, with higher weights in names where the upside to estimated intrinsic value is largest, subject to liquidity and risk constraints. - Limited use of ETFs, as the strategy focuses on stock-specific alpha rather than index overlays. Turnover is low to moderate. Orbis is prepared to hold investments for many years while theses play out, but will exit or resize positions when the mispricing closes, fundamentals deteriorate, or better opportunities arise. Over a sequence of 13F filings, this results in a stable core of holdings with selective but meaningful changes, consistent with a long-horizon, conviction-based process. When the firm’s 13F History is ingested into a Portfolio Simulator or Backtesting Service and normalized to a user-defined starting notional, it can be used to approximate how a long-only investor in the disclosed U.S. equity sleeve would have experienced the strategy over time, providing a data set for examining the 13F-based Historical Track Record in relation to style and market regimes.

Orbis Investment Management (U.S.), L.P. represents the U.S. arm of a global, independently owned asset manager known for research-driven, contrarian value investing. From a 13F perspective, the firm’s U.S.-listed book is a high-conviction, fundamentally selected equity portfolio with broad sector diversification, significant deviations from standard indices, and low-to-moderate turnover. When its public filings under CIK 0001598147 are stitched into a coherent 13F History and analyzed in a Portfolio Simulator, an allocator can reconstruct a normalized portfolio representing Orbis’s reportable long U.S. equity exposures. Structurally, the time evolution of the 13F Portfolio Composition reveals how sector allocations, issuer breadth, and top-holding concentrations have shifted through value-versus-growth cycles, liquidity events, and changes in investor sentiment. Outcome-wise, the inferred Historical Track Record, combined with indicative efficiency diagnostics such as a reconstructed Sharpe Ratio and observed Max Drawdown Depth, provides a data-grounded view of how the visible sleeve has navigated equity bull and bear markets and periods of pronounced valuation dispersion. Because Form 13F illuminates only one segment of Orbis’s global, multi-strategy platform, these analytics should be treated as a focused, long-only lens on its U.S.-listed equity implementation rather than a complete portrayal of client outcomes. The central question for allocators and oversight committees is how the regime sensitivity implied by this reconstructed sleeve—particularly its exposure to value spreads, style rotations, and macro-driven shifts in risk appetite—aligns with their expectations for the role of a contrarian, benchmark-agnostic equity manager within a broader multi-manager or multi-asset allocation.

The risk profile of Orbis Investment Management (U.S.), L.P., as seen through its 13F-reported positions, is shaped by its contrarian value orientation, high active share, and willingness to deviate from index sector and factor exposures. Key structural risk characteristics include: - Equity market exposure: The reconstructed 13F portfolio is long-only and thus participates fully in equity market cycles, rising in broad rallies and declining during market selloffs. Absolute volatility will broadly track equity markets, but relative performance versus benchmarks can diverge significantly depending on style conditions. - Style and factor risk: Persistent tilts toward value, quality, and sometimes smaller or mid-cap names create tracking error versus cap-weighted benchmarks, particularly in extended periods of growth and momentum dominance. During such regimes, contrarian portfolios can experience prolonged relative drawdowns even if fundamentals remain intact. - Concentration and idiosyncratic risk: Within a diversified framework, Orbis runs meaningfully sized positions in its highest-conviction ideas. This raises exposure to company-specific events—earnings surprises, regulatory changes, management turnover, or corporate actions—that can have a disproportionate impact on short-term results. By mapping each 13F holding to its historical price series and reconstructing a time series of portfolio values from the 13F History, allocators can estimate realized volatility, correlation with major equity indices, and downside characteristics of the notional long U.S. equity sleeve. A key diagnostic in this context is historical Max Drawdown Depth, which quantifies the steepest peak-to-trough decline experienced by the reconstructed portfolio over the observation window, capturing the combined effects of market beta, value tilts, and position concentration during adverse regimes. From the same reconstructed capital path, risk-adjusted outcome measures such as an indicative Sharpe Ratio can be derived, relating the variability of the sleeve to its long-run compounding behavior. Interpreting these statistics alongside the evolving 13F Portfolio Composition—including sector weights, the breadth of the issuer set, and top-position concentration—yields a practical Volatility Profile for the portion of Orbis Investment Management (U.S.), L.P.’s activity that is visible via Form 13F and can be quantitatively examined using Performance Backtests Online. It is important to note that this lens is inherently partial. Non-U.S.-listed holdings, any derivatives or hedging instruments, and client-specific asset-allocation decisions are not captured in 13F data but are important to the overall risk and return profile of Orbis-managed portfolios.