Allan Mecham is an unconventional value investor with a superb track record. He launched Arlington Value Capital in 1999 and the fund stayed out of sight until 2012 when Marketwatch profiled the fund. During the first 12 years of its existence Arlington Value Capital returned 400% after fees and expenses. Arlington Value was also among the few hedge funds that delivered positive returns in 2008.
Arlington Value also had phenomenal returns in 2013, 42.6% vs. 32.4% for the S&P 500 Index. The fund underperformed in 2015 (-6.7% vs. 1.4% for S&P 500), but outperformed in 2016 (29.1% gross vs. 12% for S&P 500). We haven't seen any returns from Arlington Value since then.
We have a collection of investor letters from Arlington Value Capital. Please send us an email to us if you'd like a copy.