Letters from Hedge Funds

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[Letters from Hedge Funds @LettersFromHF]

Read the full letter here: https://t.co/m5xPyM9zku

Follow @1MainCapital for more about 1 Main Capital Partners!

[Letters from Hedge Funds @LettersFromHF]

The mispricing is linked to the ongoing management change and underestimated potential to consolidate its industry at appealing valuations. With margin expansion and a strategy to deploy free cash flow into accretive M&A, $LMB stands as a long-term growth prospect

[Letters from Hedge Funds @LettersFromHF]

Limbach $LMB, an HVAC-focused speciality contractor, is impressing with its transition to an owner-direct model under new leadership. With a net cash balance sheet and strong demand, $LMB is handpicking high-margin projects and strengthening ties with infrastructure operators

[Letters from Hedge Funds @LettersFromHF]

$KKR, a leading alternative asset management firm, has seen substantial growth in AUM. Despite slowed realisations and declining performance, KKR's diverse portfolio (real estate, infrastructure, credit, HNWI products) still has potential for further substantial AUM growth

[Letters from Hedge Funds @LettersFromHF]

The mispricing can be attributed to investor apprehension about alternative asset managers, which commands low trading multiples. Despite this, KKR's consistent growth across cycles positions it as an undervalued asset in this space

[Letters from Hedge Funds @LettersFromHF]

The mispricing arises from an underestimation of the managed-partnership business line, misleading IFRS-16 lease accounting, and IWG being a UK-listed, small cap in the office space market. But with a likely US re-listing in 12-18 months, IWG represents an undervalued opportunity

[Letters from Hedge Funds @LettersFromHF]

$IWG, a global leader in the flex office market, stands to gain from the transition to a capital-light business model and high office vacancies. Recent forced selling due to allegations against a large UK-based investment firm's founder temporarily pressured the share price

[Letters from Hedge Funds @LettersFromHF]

The mispricing can be attributed to inflation, rising rates, and post-IPO consensus estimates being missed, coupled with slightly higher-than-usual leverage and selling by event-driven investors post-strategic review. Estimates likely bottomed out and leverage is set to decrease

[Letters from Hedge Funds @LettersFromHF]

1 Main Capital Partners outperformed the S&P 500 in H1, with an impressive return of +20.6%! As market conditions improve, the Fund's focus on growing, attractively valued businesses signals optimism for future returns. But what stocks do they hold? 🧵

[Letters from Hedge Funds @LettersFromHF]

dentalcorp $DNTL, Canada's largest dental practice operator, is a stable, cash-rich business with significant growth potential. A failed sale led to a drop in share price but it has potential for margin expansion and attractive reinvestment opportunities in practice acquisitions

[Letters from Hedge Funds @LettersFromHF]

… maturing locations are set to surpass pre-COVID levels. CEO and co-founder's substantial stake aligns interests with shareholders, underpinning the growth story of this gym industry leader

[Letters from Hedge Funds @LettersFromHF]

Recurring membership fees and potential gains from reduced competition from independent operators in the event of a recession further strengthen their outlook. The company's rapid unit growth and COVID-induced member attrition previously distorted profitability, but…

[Letters from Hedge Funds @LettersFromHF]

Basic-Fit $BFIT, Europe's largest low-cost gym operator already mentioned in a previous thread, is on the rebound post-COVID. With plans to grow location count by 15%+, and robust unit economics, the firm is positioned for strong cash flow growth

[Letters from Hedge Funds @LettersFromHF]

Read the full letter here: https://t.co/GhY8oARnDs

Follow @LaughingH20Cap for more about Laughing Water Capital!

[Letters from Hedge Funds @LettersFromHF]

Let’s end this week with excellent results from @LaughingH20Cap, which has returned 22.4% to its investors YTD. Experts were forecasting an imminent recession? Wrong call! Let’s dig in: 🧵

[Letters from Hedge Funds @LettersFromHF]

While the perceived value of BOHA! has dropped amid higher interest rates and declining software multiples, the slot printer business value has increased due to market share gains. It's probable that activists will push for a sale of either or both businesses in the near future