Greenhaven Road Partners Fund’s Q1 2019 Investor Letter

A month ago we shared a copy of Greenhaven Road Capital‘s Q1 2019 Investor Letter (track down here) in which the fund reported being up 16% for the first three months of 2019. Now, this long-biased, concentrated boutique hedge fund, founded by Scott Stewart Miller, has released Q1 2019 Investor Letter for its Greenhaven Road Partners Fund, which you can download below. In it, the fund disclosed a return of 8% for the quarter.

“Dear Limited Partners,

The Partners Fund returned approximately +8% in the first quarter. This was below the major U.S.indices. Why? We have onefund that is entirely invested in Europe;another isover 35% invested in Korean equities. We now also have some South African exposure(Desert Lion discussed below). Over time, we should see a divergence from U.S.indices because of the nature of the underlying holdings. We have not recreated the S&P500–our portfolio is intentionally different.


–Introducing Desert LionIn the last two letters, I discussed the likelihood that we would seed an investment manager. There are many forms of seed investing. The core of most seed relationships is a sizable limited partner(LP) investment into a fund in exchange for a portion of the economics of the overall fund. To put it another way, in addition to whatever returns one would earn as an LP, a seed investor will also get a portion of the profits that the manager earns from management and incentive fees of the entire fund. If a fund is seeded at launch, there may be no other limited partners yet, in which case owning a portion of the overall fund would have no impact on returns. However ,if the fund attracts other investors, the revenue share contributions can become quite substantial.”


You can download a copy of Greenhaven Road Partners Fund’s Q1 2019 Investor Letter here:


You can also see the list of our 2019 Q1 investor letters and download them on this page.