May 2024 Investor Letter ↗Fundamental Value increased its international longs, built a more conservative US short book, and made Disney one of its largest positions on the view that its parks business and improving streaming economics are undervalued. The strategy exited painful meme-stock shorts in DJT and GameStop, shifting toward valuation shorts including Apple, Costco and Cintas.first five months of 2024 -10.9%DIS$186BARKKDJT$2.4BGME$8.1B
December 2023 Investor Letter ↗Fundamental Value sold Netflix, cut Meta Platforms and added Apple, Clorox, Tootsie Roll, ARM Holdings and C3.ai shorts as mega-cap and staples valuations rose. It remained long Old Republic and RCI Hospitality, arguing their earnings power is underappreciated, and initiated British American Tobacco for its low valuation and reduced-risk nicotine franchise. The portfolio expects persistent inflation and fiscal deficits to constrain the soft-landing narrative.December 2023 +21.3%BTI$123BAAPL$4.5TAI$1.6BARM$268B
May 2023 Investor Letter ↗Fundamental Value argues that a higher-rate, inflationary regime exposes fragile refinancing assumptions, especially in commercial real estate, and favors cash-generative companies with pricing power. It added Airtel Africa and community banks, retained Bollore and Meta Platforms, and shorted Sunrun over its cash burn and aggressive contract-value assumptions.first five months of 2023 +8.0%AAFRF$16BBOL$12BCGECF$392MMETA$1.4T
3Q22 FV Quarterly Report ↗Bireme Capital argues that persistent inflation and a Fed unwilling to support markets have replaced the buy-the-dip regime with a sell-the-rally one. It backed RCI Hospitality and Netflix on operating momentum and valuation, exited Tencent Music over weakening Social Entertainment and pricing pressure, and built Twitter into its largest position ahead of Musk's acquisition.3Q22 +2.5%NFLX$511BRICK$240MTME$14BTWTRdelisted
2Q22 FV Quarterly Report ↗Bireme Capital argues that persistent inflation, tighter policy and falling corporate profitability leave risk assets exposed to further declines. The portfolio retained HCA Healthcare as a core long, covered shorts in Affirm and Skillz, and remained short fuboTV, GameStop and MicroStrategy.2Q22 -1.4%AFRM$26BFUBO$1.1BGME$8.1BHCA$88B
