Rhizome Partners is an asset management firm, managed by Bill Chen, who previously worked at New York Global Group as a Director of Research. Prior to this position, Bill Chen honed his investment acumen at Citi. He graduated from Cornell University with a B.S. in Mechanical and Aerospace Engineering. The fund’s investment philosophy is oriented towards publicly-traded equities and debt securities of small- and micro-caps. Recently, Rhizome Partners released its Q1 2019 Investor Letter, a copy of which you can download below. Among other things, it reported a quarterly return of 8.2% compared to 13.5% for the S&P 500.
During the first quarter, Class B investors of Rhizome Partners experienced an 8.2% net gain versus a 13.5% net gain experienced by the S&P500. Many of the investments that sold off during 2018 reversed course and experienced sizable gains. Our three real estate investments, LTREC, Griffin Industrial, and Laaco, Ltd generated roughly 4% gross gains during the quarter. Other significant contributors include Berry Global, Calumet Specialty Products, and GCI Liberty, Inc/Liberty Broadband which contributed roughly 1% gross gains each during the quarter. Although our quarterly net gains trailed the S&P, we are very excited about 2019 because our portfolio remains extremely undervalued while our companies continue to increase their intrinsic value at a rapid pace. At the same time, we are cautious and have hedged a portion of our portfolio.”
You can download a copy of Rhizome Partner’s Q1 2019 Investor Letter here:
You can also see the list of our 2019 Q1 investor letters and download them on this page.