Black Bear Value Partners 4Q22 Commentary| MENAFN.COM

Thursday, 30 March 2023 11:53 GMT

Black Bear Value Partners 4Q22 Commentary

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Black Bear Value Partners LP commentary for the fourth quarter ended December 31, 2022.

“Don't play everything; let some things go by.... What you don't play can be more important than what you do.”
– Thelonious Monk

q4 2022 hedge fund letters, conferences and more

Gates Capital Management Reduces Risk After Rare Down Year [Exclusive]

Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for read more

Dear Partners and Friends,

  • Black Bear Value Fund returned +1.8%, net, in december and +12.5% for 2022.
  • The HFRI Value Index returned -0.9% in December and -8.1% for 2022.
  • The S&P 500 returned -5.8% in December and is -18.1% for 2022.

From the start of our Partnership, it was clear that investment knowledge alone would not be enough for a sustainable business with a competitive advantage. If we could create a long business runway we could invest for the long-term (not the next quarter or year).

As a result, I underwrote the business to failure...I presumed to raise 0 dollars meaning Lauren and I would have to fund the business entirely ourselves for 5-10 years. We would invest in high quality service providers but otherwise keep the operating costs lean.

This mentality, while unusual, gave me the freedom to look for ideas and quality long-term investors. Having a durable business structure leads to quality partners which leads to the ability to have a quality long-term and concentrated portfolio...they're all interconnected.

Thankfully we have attracted amazing LP's that range from high-net-worth individuals to family offices. Although our headcount has grown from a team of 1 to a team of 2 (CFO David Proskin), we will forever maintain a lean and bootstrapped culture. It helps explain our returns, our patience, and our extremely high-quality LP base.

Topics covered in our letter include:

  • 2022 in review
  • Could something other than rates be unprecedented?
  • Degree of difficulty when investing
  • Inflation thoughts and short ideas
  • Discussion of our top 5 investments
  • General fund updates and medium term growth plans

Please note returns could vary depending on your time of investment.

2022 Year-End Letter:
link to letter

Thank you for your trust and support,

Black Bear Value Partners, LP

[email protected]


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