Dane Capital Second Quarter Letter

21 Aug

Dane Capital Second Quarter Letter

Next month we will be sending out our Autumn edition, which is already taking shape. We have interviews with two value-focused funds lined up, one of which is Eric Gomberg’s Dane Capital.

Ahead of the release of our Autumn issue next month, here is Dane Capital’s second quarter letter to investors which was published last week.

We’re pleased to report that in the 2nd quarter of 2017, Dane Capital Management (the “Fund”) returned 10.6%, net of fees and expenses, resulting in the Fund generating a 22.8% return year-to-date.

We’ve stated, both when results have been disappointing and strong, that Dane’s performance should be judged over years, and not months and quarters. We remain optimistic about our ability to identify unique ideas and produce outstanding returns over time.

We’re confident regarding our Fund’s prospects over the next several quarters, particularly given recent earnings reports (regardless of positive or negative near term stock action) as they validate our theses on our core holdings. Moreover, we continue to see interesting opportunities, although we remain judicious, as always, and add new stocks to the portfolio at a conservative pace.

Interestingly, even with the Fund’s strong year-to-date results, several of our largest positions have not contributed to the positive performance (or, in some cases, have negatively contributed to the Fund’s performance), despite healthy fundamentals. We are confident, that both these companies, and our other holdings, which we view as below their intrinsic value, will reflect fair value in quarters to come.

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