Corsair Capital Management Investor Letter: Concerns About Trump Tariffs, Tech Valuations

Jay Petschek (pictured below) and Steven Major’s Corsair Capital Management has delivered market-beating returns since its founding over 25 years ago, with annualized net returns of 12.3% since January 1991, beating the S&P 500 by an average of over 2 percentage points annually.

In its Q2 investor letter released in late-July, the fund expressed concern over the growing trade war being waged by U.S President Donald Trump against not only China, but also several of the United States’ longest standing allies, including Canada, Mexico, and Europe. The fund was endeavoring to avoid any companies that could be caught up in the tariff war. The fund further cautioned investors to consider trimming their exposure to tech stocks, which were again leading the market during Q2, replacing them with out-of-favor stocks instead. That advice proved to be wise, as tech stocks lead the market downfall in October.

Corsair Capital Management also shared its latest thoughts and analysis on several of its positions, including FMC Corporation (NYSE:FMC), Nomad Foods Limited (NYSE:NOMD), SPX Corporation (NYSE:SPXC), Flex Ltd. (NASDAQ:FLEX), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), and Hilton Grand Vacations Inc. (NYSE:HGV).

Jay Petschek - Corsair Capital

A complete copy of the investor letter can be downloaded here.

Disclosure: None