Steel City Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of 8.4% was recorded by the fund for the full year of 2021. This compares to its benchmarks, the S&P 500 and Russell 2000 Index which had 26.9% and 14.5% returns respectively for the same period. During the year, the Partnership’s long book contributed 9.2% to returns. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Steel City Capital, in its Q4 2021 investor letter, mentioned Liberated Syndication Inc. (NYSE: LSYN) and discussed its stance on the firm. Liberated Syndication Inc. is a Pittsburgh, Pennsylvania-based IT service management company with a $91.7 million market capitalization. LSYN delivered a -3.09% return since the beginning of the year, while its 12-month returns are down by -25.81%. The stock closed at $3.45 per share on February 15, 2022.
Here is what Steel City Capital has to say about Liberated Syndication Inc. in its Q4 2021 investor letter:
“On Liberated Syndication (LSYN), I sound like a broken record. Or perhaps more aptly, a broken podcast. The company and its shares continue to be stuck in the mud. On perhaps the only positive note, the Board moved to cancel 7.5 million shares that it contends were fraudulently issued prior to the company’s separation from FAB Universal Corporation. The move should effectively shrink LSYN’s share count by 22%. I commend the Board for doing the right thing.
On a not-so-positive note, LSYN remains woefully delinquent on their filings and I believe the restatement process has been mismanaged. Last quarter, regarding the timing of financials, I said the following: “Investors are continuing to fly blind with financials expected no earlier than December 1, 2021, although I think it’s more likely the issue drags meaningfully into 2022 before shares regain compliance and are re-listed.” I have actually come to believe that even this outlook was overly optimistic, and my base case for the company becoming current has now slipped to 2023.”
Photo by Danial Igdery on Unsplash
Our calculations show that Liberated Syndication Inc. (NYSE: LSYN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Liberated Syndication Inc. (NYSE: LSYN) delivered a -9.21% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on LSYN in another article. 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.
