Is Atlas Financial (AFHIF) A Great Investment Choice?

Clark Street Value, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. An annual portfolio return of 74.99% was recorded by the fund for the year 2021, versus 28.71% for the S&P 500, and an IRR since the inception of 29.12%.  over the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Clark Street Value, in its Q4 2021 investor letter, mentioned Atlas Financial Holdings, Inc. (NYSE: AFHIF) and discussed its stance on the firm. Atlas Financial Holdings, Inc. is an Illinois-based insurance company with a $5.6 million market capitalization. AFHIF delivered a 5.56% return since the beginning of the year, while its 12-month returns are up by 153.33%. The stock closed at $0.38 per share on January 13, 2022.

Here is what Clark Street Value has to say about Atlas Financial Holdings, Inc. in its Q4 2021 investor letter:

“Atlas Financial (AFHBL for the bonds) is a covid recovery play on taxis, limos and ride sharing drivers returning to work and a business change from a risk taking insurance provider to more of an asset-lite agency model.  I originally didn’t like the RSA plan for the bonds, but the alternative plans don’t seem to have gone anywhere, so I’m happy to change my mind and support the RSA here even though it bifurcated the creditor group.  The key line in the Q3 earnings release was “Our current in-force business is approximately 6% of what we underwrote as a carrier in 2018, and given current trends we feel there is considerable room to recapture business over time”.  Even if they get only a portion of that business back, should make the bonds money good over time.”

Pixabay/Public Domain

Our calculations show that Atlas Financial Holdings, Inc. (NYSE: AFHIF) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Atlas Financial Holdings, Inc. (NYSE: AFHIF) delivered a -26.33% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.