Exploring investment strategies of Salt Light Capital and Legacy Ridge Capital, discussing energy challenges, power generation sector dynamics, and navigating industry uncertainties. Insights into Cedar Creek Partners' Q4 2023 performance, diverse investment topics, advancements in AI tech, and growth post-acquisition by Transaction Capital.
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Quick takeaways
Metemco supports emerging managers and MIT's mission through emergingmanagers.org.
Macarops focuses on continuous learning, high returns, and a smart Slack community.
Ticker.com offers institutional level research to individual investors on 50,000 global stocks.
Legacy Ridge's 2023 returns, portfolio concentration, and investment shifts highlighted.
Narrative explores power generation investments, environmental impact, and Vistra Corp's undervaluation.
Salt Light discusses AI potential, tech giants' investments, and software sector strategies.
Deep dives
Investing with MIT
Metemco invests with new emerging managers, supports MIT's mission, and created emergingmanagers.org to help the community. The site offers essays and interviews by successful emerging managers, service providers used by MIT, and job opportunities with Metemco.
Macarops Value Hive Podcast
Macarops focuses on high risk-adjusted returns, emphasizes continuous learning, and boasts high member retention rates. The podcast offers differentiated research, theory, and education resources alongside a smart Slack community.
Ticker.com Sponsorship
Ticker.com provides institutional level investment research to individual investors. Powered by S&P Global Capital IQ, it covers 50,000 global stocks with financial data, valuation metrics, ownership percentages, and more. Value Hive listeners can join Ticker's free beta trial.
Legacy Ridge Capital Management 2023 Results
Legacy Ridge's 2023 total return was 36.5% gross and 28.4% net of performance fees. They maintained a highly concentrated portfolio with top positions comprising over 70%. Notable changes included selling Crestwood Energy Partners and purchasing illiquid preferred shares for potential performance enhancement.
Clean Energy Investments and Market Trends
The narrative explores the terminal value conundrum in power generation investments. It discusses the evolution of coal and nuclear energy globally, emphasizing the impact of environmental regulations and societal shifts. Factors affecting Vistra Corp's undervaluation relative to comparative companies like Constellation Energy Group are highlighted.
Energy Security and Reliability Challenges
The text delves into the complex interplay between energy security, reliability, and global crises like the Russian-Ukraine conflict. It underscores the importance of balancing environmental goals with economic stability and the lessons learned from past energy-related disasters and their impact on power generation.
Salt Light Capital's Insights on AI and Advertising
Salt Light reiterates the challenges of predicting stock market movements and the potential of AI in advertising. The discussion touches on historical tech revolutions, current AI infrastructure investment challenges, and the interplay between technology adoption and market expectations, focusing on the transformative possibilities in AI software applications.
Transaction Capital's Strategic Moves
Transaction Capital's strategic considerations following the spinoff of Wi-BiCars. Emphasizes the growth potential of Wi-BiCars and the operational enhancements since its acquisition. The narrative reveals insights into TCP's post-spinoff scenario, focusing on financial and operational restructuring possibilities.
Marhelm Data Sponsorship
Marhelm Data offers real-time information to investors focusing on shipping and commodities in an overvalued market. It aids in identifying global investment opportunities and provides insights on global trade and sentiment. Value Hive listeners can benefit from a 20% discount on Marhelm Data subscriptions with the code VALUE at checkout.
Cedar Creek Partners Q4 2023 Letter Highlights
Cedar Creek shares their 2023 performance, cumulative returns since inception, and investment strategy focusing on microcap and over-the-counter stocks. The letter discusses fund holdings, market exposure to expert markets, and updates on top holdings like Propel Media, PDRX, and Citizens Bank shares, signaling potential opportunities for new members and additional capital.
Salt Light Capital's Investment Approach
Salt Light's Worldwide Flexible Fund delivered a strong return in 2023, driven by investments in tech giants, Mercado Libre, Roblox, and Brookfield entities. Emphasizes the challenges of predicting short-term market movements and focuses on AI's potential in transformative application software. Discusses the impact of AI and network economies in software services and sector-specific investment strategies.
Advertising Innovation and AI Applications
The narrative delves into Meta's engagement strategies and ad targeting improvements through AI. It illuminates the role of AI in enhancing user engagement and targeting accuracy in digital advertising. AppLoven's contextual data usage in free-to-play gaming and the potential of connected TV advertising are highlighted, showcasing the profitability and potential of personalized and automated advertising.
Transaction Capital Restructuring Analysis
Transaction Capital's post-unbundling considerations post the spinoff of Wi-BiCars, projecting growth in free cash flow driven by market expansion and inventory turnover. The letter discusses the potential outcomes for TCP's remaining business units, focusing on WBC's market share doubling and possible impacts on remaining entities like SA Taxi and Newton, setting the stage for reshaping the company's future.
Please let me know what other letters you'd want to hear on future Investor Audible series episodes!
Finally, a big thanks to the following sponsors for making the podcast a reality.
Mitimco
This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.
For those looking to start a stock-picking fund or just looking to learn about how others have done it, I highly recommend the site. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers and more!
Tegus
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I spend nearly all my time reading Tegus calls on existing holdings and new ideas. And I know you will too. So if you’re interested, head on over to tegus.co/valuehive for a free trial to see for yourself.
TIKR
TIKR is THE BEST resource for all stock market data, I use TIKR every day in my process, and I know you will too. Make sure to check them out at TIKR.com/hive.
Marhelm
Marhelm is an information service for investors to find real value in an overvalued market. With a focus on shipping and commodities, Marhelm helps you stay on the pulse of global trade, track global sentiment, and identify compelling investment opportunities. Get 20% of your subscription by using the code VALUE at checkout. Check it out here.
