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Washington H. Soul Pattinson (SOL)

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Question asked 22/11/2025

Washington H. Soul Pattinson (SOL)

Greetings and thank you for your persistent work, What is your current thoughts on a good entry point for SOL. It seems to have good support around the $34.50 area. Do you expect that price level to be tested or even breach lower? There seems to be concerns around private credit markets these days. Is SOL wedded to having money in the credit space or does move in/out depending on the risk environment? I ask this because other 'funds such as WAM Income Maximiser seems to have a minimum amount that it invests in credit/bonds. Bonds seem to be in a bear market now. Thx, Bob

Answer

Hi Bob,

SOL doesn’t operate with an investment mandate like more traditional funds. Their 3 investment pillars outline their point of difference:

Unconstrained Opportunity to invest where we can extract sustainable returns.
Long-term Commitment to building value and not being distracted by short term events.
Strength of Conviction when making investment decisions.

We believe SOL is a quality operator who have performed throughout various cycles, consistently having delivered above market returns for decades. As such SOL is not necessarily wedded to Private Credit, but they won’t shy away if they believe it satisfies their investment thesis, and currently, they are very positive on private credit. The main difference though is how they assess credit investment opportunities. They do this through the lens of owning the equity, and will only lend, if they are comfortable ending up with the issuers equity. This is a more conservative/long term mindset than say a straight out private credit fund.

We think SOL is offering good risk/reward ~$37 after correcting over 20%. It sits on our Income Portfolio Hitlist, and we are watching recent weakness closely.

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Washington H. Soul Pattinson (SOL)

LAST UPDATED 20/11/2025 14:29

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