First Pacific Company Ltd

• QF Quercus Fund 2026 Second Letter to Shareholders ↗ Quercus Fund retained Sanjiang Chemicals as its largest holding, arguing that feedstock flexibility, MTBE expansion and ethane logistics have strengthened its cost position despite erratic trading. It sold Compagnie de l’Odet and Braskem Idesa bonds for better-priced opportunities, then bought First Philippine Holdings and Lopez Holdings for their discounted control of Philippine power assets and Meralco stake. 2026 (Jan-Aug) FCODF $4.7B
• QF Quercus Fund 2026 First Letter to Shareholders ↗ Braskem Idesa anchors Quercus Fund’s new distressed-debt thesis: its ethane import terminal should restore operating rates, while the bonds retain recovery support through Carlos Slim’s financing and the plant’s replacement cost. The fund added six discounted positions, including Indofood, and excludes gold because its intrinsic value cannot be estimated. 2026 (Jan) BAK $450MBRK.A $1.3T
• QF Quercus Fund 2024 Third Letter to Shareholders ↗ Asia Cement (China) was sold after its controlling shareholder made a lowball privatization offer, despite the company holding substantial net cash. Quercus Fund made no additions during the year, retaining concentrated holdings it considers deeply undervalued and recycling dividends toward the most attractive existing positions. 2024 (Jan-Sep) AMNTF $280MACWI

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