Dane Capital Q1’18 Investor Letter

Dane Capital Management, a New York-based hedge fund that focuses on value and special situations investments, recently published its 2018 Q1 investor letter – you can download copy below.

The fund reported a loss of 14.7%, net of fees and expenses, for the first quarter of 2018. Last year, the fund reported a 50.2% return, net of fees and expenses – so this clearly is a very disappointing performance.

“Our 1Q performance reflects the decline in a large number of our holdings for non-fundamental reasons. To be more precise, the decline was not due to companies missing numbers, lowering expectations, experiencing deteriorating fundamentals, or seeing increasing competition. A number of temporary, exogenous, and hard to foresee factors impacted our stocks. These include things like major holders distributing shares to LPs in lieu of selling in an orderly fashion (i.e. a secondary or a block trade), a botched follow-on offering, and a SPAC closing that was delayed multiple times,” Dane Capitol said in the letter.

You can download a copy of the fund’s letter here.