Artko Capital’s Q1 2019 Investor Letter

Artko Capital is a San Francisco-based, value-oriented hedge fund. It prefers to invest in small and micro-cap companies, as well as special situation securities. The fund usually runs a concentrated portfolio. Its managing director, Peter Rabover, holds a BS in Finance from Duquesne University – AJ Palumbo School of Business Administration, and an MBA in Asset Management from the University of Virginia – Darden Graduate School Of Business Administration. Artko Capita has just released its Q1 2019 Investor Letter, a copy of which you can download below. In the letter, it has reported a return of 10.3% net of fees, underperforming the S&P 500 (13.7%), Russell 2000 (14.6%), and Russell Microcap (13.1%). It also shared an extensive analysis of “the Valeant Problem”.

“Dear Partner,

For the first calendar quarter of 2019, an average partnership interest in Artko Capital LP returned10.3%net of fees. At the same time, an investment in the most comparable market indexes—Russell 2000, Russell Microcap, and the S&P 500—was up 14.6%, 13.1%, and 13.7%, respectively. Our monthly results and related footnotes are available in the table at the end of this letter. Our results this quarter came from contributions from the near doubling of Joint Chiropractic as well as Skyline Champion, while the rest of the portfolio remained flat to modestly up for the quarter.”

You can download a copy of Artko Capital’s Q1 2019 Investor Letter here: