Maran Capital Management LLC’s Q2 2019 Investor Letter

Maran Capital Management LLC released its Q2 2019 Investor Letter – a copy of which can be downloaded below. The Denver-based firm, which is known to be concentrated and value-driven, focuses on long-term investments. Maran Founder and CIO Dan Roller started the firm in 2015. This Duke University alumnus worked with various investment management companies before founding Maran. These companies include Credit Suisse First Boston, Saranac Capital, Impala Asset Management, Avesta Capital Advisors, and Scopus Asset Management.

In its recent Investor Letter, Maran Capital Management LLC announced a 2.8% return for the second quarter. The current year-to-date (YTD) return is at 19%. Check out the letter’s highlights below.

“Dear Partners and Friends,

The fund returned 2.8% net of all fees and expenses in the second quarter, bringing the YTD return to 19.0% net.

Highlights and announcements:

– I had the pleasure of interviewing Warren Kanders, chairman of Clarus Corp (CLAR), our largest position, at the Casulo Symposium in New York City during the second quarter. I look forward to sharing a transcript of the event with all limited partners in the near future.

– I believe that my process is working well. I am continually attempting to make it even better (see: The Most Important Mental Model).

– No surprise, but compounding capital at a rate of “five-year doubles”  over long periods of time is powerful (see: Three-Year Doubles, Five-Year Doubles).

– If total partnership capital under management continues to grow at historical rates, I expect to start limiting inflows in the next two to three years.

– Our current Founders Share Class fee structure has limited additional capacity; I expect it to close by year-end.

– This was an above-average quarter in terms of portfolio activity, with several changes to our top five positions (see: Portfolio Update).

– I attended VALUEx Vail in June, which is a fantastic buy-side idea-sharing event hosted by my good friend, Vitaliy Katsenelson.  I presented a case study on Westlake Chemical (WLK) and its wonderful CEO,  Albert  Chao, who has compounded capital at truly impressive rates in a cyclical industry (see  Westlake Chemical).

– Despite being four years into running this partnership, and sixteen years into my career as an investor, I remain on Square 1 (see: Square 1).”

You can download a copy of Maran Capital Management LLC’s Q2 2019 Investor Letter here:

Maran Capital Management LLC’s Q2 2019 Investor Letter