Greenwood Investors’ Q1 2019 Investor Letter

Greenwood Investors is a New York-based hedge fund that was founded by a chartered financial analyst, Mr. Steven Wood in 2008. Since its inception, the fund has achieved compounded annualized return of 15.4%. The fund’s investment strategy is value oriented with particular expertise in distressed and special situations equities. Its main interests include Energy, Industrials, Selective Tec, Healthcare, and Telecom. Before launching his own hedge fund, Mr. Steven Wood worked at Kellogg Capital Group, Carr Securities, and Aslan Capital. He earned a BA in Economics, Political Economy, and International Relations from Tulane University. Recently, Greenwood Investors released its Q1 2019 Investor Letter, which you can download below.

“Thursday, May 23, 2019

“It used to be about trying to do something. Now it’s about trying to be someone.” -Margaret Thatcher

Dear GreenWood Investor:

We had a very productive beginning to the year with decent, but not satisfactory returns. As spring approached the northern hemisphere, like good gardeners, we over-planted seeds to ensure a bountiful harvest later. With all value creators, or Builders as we call them, deferred gratification is a key element of significant value creation. Much of our portfolio has delivered solid progress on their transformational paths, and in most cases, the market has barely kept up, or even punished value creation, instead preferring short term profit maximization. We are not only undeterred, but have great excitement about the quarters to come. We relish opportunities where the market is blithely unaware of underlying transformations, as it translates to future positive surprises and alpha. The more significant the gap in expectations, the more significant the alpha generated, in our experience.We have also started generating gamma, which we will discuss in greater detail throughout the year as our plans unfold.”

 

Traditional Global Micro MSCI
8/1/08-12/31/08 -10.9% -33.9%
2009 155.3% 36.6%
2010 28.5% 14.5%
2011 -1.0% -8.0%
2012 -5.6% 16.4%
2013 14.2% 18.0% 23.6%
2014 0.1% 2.0% 3.8%
2015 11.2% 11.8% -2.2%
2016 -2.5% -1.0% 8.4%
2017 27.0% 25.1% 24.0%
2018 -2.8% -2.3% -10.2%
YTD 4/30/19 11.5% 12.0% 16.0%
Cumulative 366.9% 82.3% 94.6%
Annual Compounded Rate 15.4% 9.9% 6.4%

 

You can download a copy of Greenwood Investors’ Q1 2019 Investor Letter here:

2019.05.23-Q1-Letter-Building-Gamma

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