A Texas-based investment adviser, Askeladden Capital, run by a young investor, Samir Patel, recently released its Q2 2019 Investor Letter, a copy of which you can track down below. Before launching his own long-only mall/micro-cap oriented hedge fund in 2015, Samir Patel cut his teeth at Bonanza Capital as Research Analyst. He graduated from the University of Texas, Dallas, with a BS magna cum laude in Biochemistry and MBA in Finance and Supply Chain Management. In the letter, the fund reported year-to-date (June 28th) return of 37% gross, compared to 17% for its benchmark, the S&P 1000 Total Return.
Year to date through 6/28/2019, Askeladden Capital Partners LP has returned in excess of ~ +37% gross, representing a positive spread of over 20 percentage points compared to the +17% return of our benchmark, the S&P 1000 Total Return. This brings our cumulative gross performance in the ~3.5 years since inception to ~ +177%, compared to benchmark performance of +59%.
On an annualized basis, returns since inception have been ~ +33.9% (gross) and ~ +26.7% (net), compared to benchmark performance of +14.2%. In light of our material outperformance over the past three years, the first outperformance allocations from a client account are due and payable this month and next.
Given the portfolio outlook, I am not withdrawing a single cent, and have instructed our fund administrators to roll the entire (low-mid-five-figure) balance of outperformance allocations to my LP account on the appropriate dates. Pro forma for this, roughly 70% of my investable (ex-cash) net worth will be held in Askeladden Capital Partners LP, with the balance in stocks held by the fund.”
You can download a copy of Askeladden Capital’s Q2 2019 Investor Letter here:
You can also see the list of our 2019 Q2 investor letters and download them on this page.