Horos Asset Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 21.5% was delivered by the Horos Value Internacional Fund for the Q1 of 2021, outperforming the Index, which appreciated 8.9% for the same period. The Horos Value Iberia returned 13.0%, beating the 5.4% rise of its benchmark You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Horos Asset Management, in its Q1 2021 investor letter, mentioned The ONE Group Hospitality, Inc. (NASDAQ: STKS), and shared their insights on the company. The ONE Group Hospitality, Inc. is a US-based hospitality company that currently has a $336.3 million market capitalization. Since the beginning of the year, STKS delivered a 201.35% return, impressively extending its 12-month gains to 668.97%. As of May 17, 2021, the stock closed at $11.15 per share.
Here is what Horos Asset Management has to say about The ONE Group Hospitality, Inc. in its Q1 2021 investor letter:
“We have also fully exited our stake in The ONE Group Hospitality (“ONE”), following their outstanding performance during the period and their lower relative upside potential compared to other investment alternatives, which we will discuss below.
Of course, our investment in ONE, a restaurant company with such well-known brands in the United States as STK (“Steakhouse”) or Kona Grill, has been much shorter, since we initiated our position amidst the worst moments of the coronavirus pandemic, betting on the financial position of the company and the leadership of the new management team led by Emanuel “Manny” Hilario. It did not take long for the market to prove us right. On the one hand, the cost containment achieved by the company during this difficult period, as well as the bet on home food delivery—leveraging heavily on social networks with 1.5 million subscribers—and, on the other hand, the gradual increase in occupancy rates, as well as the reopening of some restaurants in cities with greater restrictions, allowed ONE to maintain the same level of debt (it did not burn cash) in an absolutely hostile environment for this type of business. However, given its good future prospects, its share price has multiplied several times since our purchase, so, with a very low upside left, we decided to sell.”
Our calculations show that The ONE Group Hospitality, Inc. (NASDAQ: STKS) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. STKS delivered a 143.98% return in the past 3 months.
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