Massif Capital Exited Global Ship Lease (GSL) in the Second Quarter

Massif Capital, an investment management company, recently published its “Massif Real Assets Strategy” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter the fund returned -14.9% net of fees and the year-to-date return was -3%. Materials exposure of the portfolio posted losses during the quarter. You can view the top 5 holdings of the fund to know its best picks in 2022.

In the letter, Massif Capital discussed its Massif Real Assets Strategy portfolio. The fund exited Global Ship Lease, Inc. (NYSE:GSL) in the second quarter. Global Ship Lease, Inc. (NYSE:GSL) is a containership leasing company based in London, United Kingdom. The stock of Global Ship Lease, Inc. (NYSE:GSL) closed at $19.62 per share on August 5, 2022. One-month return of Global Ship Lease, Inc. (NYSE:GSL) rose to 23.24% and its shares gained 6.92% of their value over the last 52 weeks. Global Ship Lease, Inc. (NYSE:GSL) has a market capitalization of $784.074 million.

Here is what Massif Real Assets Strategy specifically said about Global Ship Lease, Inc. (NYSE:GSL) in its second-quarter investor letter:

“In addition to RWE, we exited our two shipping positions, Global Ship Lease, Inc. (NYSE:GSL) and SBLK. We exited GSL with a loss of 16% and SBLK with a gain of roughly 31% in less than a year. We like both companies’ management teams and the macro backdrop for SBLK, so why did we exit both positions?

We entered GSL in October 2021 based on their extensive contract cover on growing rates in a tight containership market. We believed it was trading at an 80% discount to 2022–2023 earnings and that the market would give credit for this contract coverage once it demonstrated a few more quarters of sustained cash flow. Our business assessment proved correct over the subsequent three quarters, with the firm posting phenomenal cash flow and impressive contract coverage through 2023.”

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Our research shows that Global Ship Lease, Inc. (NYSE:GSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Global Ship Lease, Inc. (NYSE:GSL) at the end of the first quarter which was 17 in the previous quarter.

We discussed Global Ship Lease, Inc. (NYSE:GSL)  in another article and shared Massif Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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