Askeladden Capital’s Q1 2019 Investor Letter

Askeladden Capital is a Dallas-Ft. Worth, Texas-based investment advisor to Askeladden Capital Partners and separately managed accounts. It is a young asset management firm, launched in December 2015 by Samir Patel, which began investing in January 2016, focusing on small and micro-cap stocks. Recently, it has published its Q1 Investor Letter – a copy of which you can download below. Prior to founding Askeladden Capital, Simor Patel worked at Bonanza Capital, as Research Analyst. He holds a BS magna cum laude in Biochemistry and MBA in Finance and Supply Chain Management from the University of Texas, Dallas.

According to its letter, year-to-date Askeladden Capital brought back ~ +24% beating its benchmark, the S&P 1000 Total Return, by 7 percentage points.

“Additionally, as will be discussed in more detail later, Askeladden Capital Management has more than doubled FPAUM since year–end. Beyond portfolio gains, roughly three million dollars of capital were added by both new and existing clients, including two new seven–figure accounts. New clients added since last summer –all of whom initially found and reached out to us, not the other way around –include:

  • individual investors who are early to mid–career professionals (a category of client we particularly love, as we discuss later),

 

  • current or former fund managers,

 

  • (U)HNWs and a family office who are current or former LPs of funds like David Einhorn’s Greenlight Capital,Zeke Ashton’s Centaur Value Fund, and Allan Mecham’s Arlington Value.

Cumulatively, since inception on 2016–01–08 through the market close on 2019–04–05, we have returned over ~ +159% prior to the assessment of any fees, compared to a little over +59% gains for our benchmark. Given our modest management fees, our approach of paying the vast majority of business expenses ourselves rather than charging them to LPs, and the fact that our performance allocations are assessed onlyon outperformance vs. the benchmark rather than on absolute performance, our returns net of all fees still substantially exceed benchmark performance.”

If you are interested, you can download a copy of Askeladden Q1 Investor Letter here:

2019-04-07-Q1-2019-Askeladden-Capital-Investor-Letter-Scars-and-How-We-Got-Them