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Saber Capital Management LLC’s 2019 Midyear Update

North Carolina-based investment management company, Saber Capital Management, LLC, released its 2019 Midyear Update – a copy of which you can download below. The firm is known for its patient approach, long-term investment techniques, and concentration on undervalued stocks of high-quality businesses. John Huber has been managing Saber Investment Fund, LP since 2012. In addition to working as a portfolio manager for Saber Capital Management, LLC, he also writes about value investing ideas on his blog called Base Hit Investing.

In its 2019 Midyear Update, Saber Investment Fund reported 26.09% gains at the end of June which resulted in a 24.37% net gain for limited partners.

Dear Investment Partner,

In the first half of the year through June 30th, Saber Investment Fund gained 26.09% before the General Partner’s performance allocation, which resulted in a net gain of 24.37% for limited partners.

You should have received your 6/30/19 account statement from Liccar & Co., which has your capital account’s value as well as your individual net return. Note that your individual return may vary depending on when you entered the fund and the timing of any new contributions.

Most investors who entered the fund last year had a loss at year end, and thus will have a net return so far in 2019 that is higher than partners who entered the fund this year. This is because you don’t pay any fees until a) all your previous losses are recouped, and b) your capital grows above the 6% hurdle. As a reminder, the 6% hurdle is not just a fixed 6% hurdle rate: it compounds annually, meaning after a losing year, the 6% hurdle is now a 12.36% hurdle in year 2 (6% compounded).

Bottom line: If your money is not growing by more than 6% annually, then you’re not paying a dime in fees.

You can download a copy of Saber Capital Management LLC’s 2019 Midyear Update here:

Saber Capital Management LLC’s 2019 Midyear Update

You can also see the list of our 2019 Q2 investor letters and download them on this page.