Dane Capital Q4 Investor Letter

Dane Capital Management, which focuses on value and special situations investments, recently published its Q4 investor letter – you can download copy below. The fund reported returns of 19.2% net of fees and expenses for the fourth quarter, resulting in a 50.2% return for the year net of fees and expenses.

In the 4th quarter virtually all our positions performed well, several of which we’re not yet prepared to disclose. Top positions including Daseke (DSKE), which we discussed at length in our 3Q letter (and previous letters) was up ~10%, while its warrants, which we’re also long, were up approximately 20%. Limbach (LMB), which we’ve also discussed at length and which we believe remains meaningfully undervalued, was up about 5% and its warrants over 10%, the fund said in the letter.

According to Dane Capital, Q4 was a very strong quarter but still many of its “holdings are significantly undervalued and will compound over time.”

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