Architectural Cases

Turtle Creek Asset Management has unveiled its insights from the third quarter of 2025, detailing a compelling investment landscape where the firm found opportunities despite a generally highly-valued market. While some of its funds experienced varied returns, with the Turtle Creek Equity Fund seeing a modest 0.4% increase and the Turtle Creek Canadian Equity Fund a more robust 7.8% gain, the firm emphasized its commitment to a strategic, value-driven investment approach. This quarter's letter particularly shone a light on their management of BRP Inc. (DOOO) shares, showcasing their philosophy in action.

Detailed Investment Report on BRP Inc. (DOOO) from Turtle Creek Asset Management

In its comprehensive investor letter for the third quarter of 2025, Turtle Creek Asset Management provided a focused discussion on BRP Inc. (DOOO), a prominent manufacturer of powersports vehicles and marine products. The firm's engagement with BRP spans several years, initially as a holding in their Canadian Equity Fund, and later incorporated into their flagship fund in early 2024. This strategic move occurred when BRP's share price dipped into the mid-$80s, presenting what Turtle Creek considered an attractive valuation opportunity. Over the subsequent 18 months, BRP's stock experienced considerable fluctuation, at times surpassing $100 per share, only to decline to the mid-$40s by mid-2025. During these downturns, Turtle Creek actively increased its stake, adhering to its core investment principle of acquiring more shares when prices are lower.

As of November 12, 2025, BRP Inc. (DOOO) closed at $64.81 per share, reflecting a market capitalization of $4.733 billion. Despite a recent one-month return of -3.48%, the company's shares have appreciated by 34.92% over the past 52 weeks. Turtle Creek's patient accumulation strategy has now positioned their initial buy-and-hold returns for BRP in a modestly positive territory, with their active management yielding even higher gains. This exemplifies their investment methodology: patiently building positions in companies they believe are fundamentally sound but temporarily undervalued, even when short-term market movements present challenges.

This case study of BRP Inc. provides a profound illustration of value investing's core tenets. It underscores the importance of a long-term perspective and the courage to act counter-cyclically. For investors, this narrative highlights that market volatility, while often perceived as a risk, can also create significant opportunities for those committed to a disciplined, value-oriented strategy. It reminds us that true investment success often stems not from chasing trends, but from a deep conviction in a company's intrinsic worth, coupled with the patience to navigate its market journey.

Michael Saylor, the executive chairman of Strategy, firmly believes that short sellers do not generate any substantive value, a perspective he voiced during a recent financial event. His remarks were made as notable short seller Jim Chanos announced the closure of his short position against Saylor's company. Even with Strategy's stock experiencing a significant drop of 22% this year, Saylor maintains a positive outlook on the evolving digital economy and the enduring potential of Bitcoin. He asserts that the current market conditions offer an exceptional risk-reward scenario, driven by fundamentally stronger industry underpinnings compared to the previous year, suggesting an opportune moment for investment.

Saylor's critique extends to skeptics who, he argues, fail to grasp the transformative nature of Bitcoin, digital capital, and digital credit. He highlighted that many companies have emulated Strategy's approach of holding Bitcoin on their balance sheets, yet a considerable number of these 'imitators' have seen their market valuations fall below their Bitcoin holdings. Despite these challenges, Saylor remains steadfast in his conviction that the digital realm offers substantial growth, presenting a promising landscape for strategic investors.

Michael Saylor's Stance on Short Selling and Digital Assets

During a recent address at Yahoo Finance Invest, Michael Saylor, the executive chairman of Strategy, expressed a strong dismissal of short sellers, declaring that "nothing great has ever been created by a short seller." This assertion underscored his unwavering confidence in Strategy's digital asset treasury (DAT) strategy and the broader digital economy. Saylor specifically referenced Jim Chanos, a well-known short seller who had previously bet against Strategy, noting that Chanos recently liquidated his position. Saylor attributed such bearish sentiments to a fundamental misunderstanding of Bitcoin's revolutionary impact and the nuances of digital capital and credit.

Saylor's remarks highlight a core philosophical divide between long-term digital asset proponents and traditional market skeptics. He argues that short sellers, by nature, focus on undermining rather than building, thus contributing little to innovation or genuine economic growth. His strong defense of Strategy's model, which involves holding significant Bitcoin reserves, reflects a belief that the intrinsic value and future potential of digital assets are often overlooked or undervalued by those who seek to profit from market downturns. This perspective is particularly relevant given the volatile nature of cryptocurrency markets and the skepticism that often accompanies disruptive financial technologies.

Market Dynamics and the Future of Digital Economy

The financial landscape surrounding Strategy and its embrace of Bitcoin has been dynamic, with the company's stock experiencing a 22% decline year-to-date, contrasting with Bitcoin's 10% increase over the same period. This divergence points to a complex interplay of market sentiment, corporate strategy, and the inherent volatility of digital assets. Despite the recent stock performance, Saylor remains resolute in his long-term vision, emphasizing that the fundamentals of the digital asset industry are significantly more robust now than they were a year ago. He sees the current environment as an extraordinary "risk-reward opportunity," signaling an optimistic outlook for those willing to invest.

K33, a crypto market research firm, revealed that approximately 50% of public companies that have adopted Strategy's Bitcoin treasury model now have market capitalizations lower than their Bitcoin holdings. This trend, a 25 percentage point increase in just seven weeks, suggests that while many have tried to emulate Strategy's success, not all have navigated the market effectively. Saylor's continued bullishness, however, is rooted in a belief that the underlying technological advancements and growing adoption of digital currencies will ultimately prevail. He believes that understanding digital capital and credit is crucial for recognizing the immense opportunities within the digital economy, implying that current market fluctuations are temporary challenges on a path to greater long-term value creation.