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.