Replying to @AltaFoxCapital
Here is a link to the full "Makings of a Multibagger" research analysis: bit.ly/3hjpkN3
Please retweet if you enjoy it!
@MicroCapClub @iancassel
Connor Haley
2,971 posts
Connor Haley
@AltaFoxCapital
Long-term focused investment firm out of Fort Worth, TX.
altafoxcapital.com/disclaimer
- It is rare to find a business trading at a ~20% free cash flow yield and 7x fwd earnings that can grow mid teens EPS organically over the medium term. Significant confusion in the market has created what we believe is a very attractive risk/reward. More details tomorrow.
- Investors who successfully utilize the collaboration tools available to the modern investor will inevitably run circles around those who don’t. I’m very appreciative of fintwit and my close network of investors— I’ve learned a ton from all of them and have hopefully contributed.
- Tomorrow, pre-market, Alta Fox will be releasing our highest conviction idea. We believe our research is the most in-depth analysis of this company’s growth prospects and valuation. It has probably been the most fun I have had researching a company since CLCT.
- There are a lot of fintwit geniuses that like to hate on small funds and managers, beat them down when they post bad results, etc. I respect anyone willing to take their own shot, publicly post results (good or bad), and carve out their own niche in a very competitive industry.
- We just published a new high conviction idea $NATL. This neglected spinoff is trading at ~6x earnings and we believe can grow EPS ~30%/year over the next three years. We believe fair value is ~250% higher over the next ~3 years. View the idea here:
- 1: Tomorrow, pre-market, Alta Fox will release our highest conviction long position. The business is benefitting from a strong secular trend, and we believe it is about to experience a significant acceleration in profitability. The obviousness of this impending inflection point
- Investing is truly the world’s greatest game. The combination of a global setting, intense competition, mix of strategy and psychology, many possible investing styles, and lofty rewards make it exhilarating. I’m always amazed you can get paid to play it!
- Being on a corporate Board should be an honor and a service to the company and its constituents (employees, customers, shareholders). It should NOT be a way to get paid lavishly while sitting on numerous Boards and having zero skin in the game.
- Alta Fox is excited to release a new high conviction idea tomorrow. We believe it is an extremely undervalued security whose equity price has detached both from comparable companies and the credit markets. It trades for a single digit multiple of earnings despite our belief that
- This is... aggressive math.Replying to @chamathii) I looked at my relative performance vs the S&P500 - 3.6% vs 2.3% = 56% above the benchmark. I’m no huge fan of being up 3.6% but right now I need to find confidence in this. iii) I looked at my portfolio and remodeled everything I’m invested in. I’m still proud of it all.
- The Alta Fox Q2-2021 letter to investors is available here:
- I just pitched one of our favorite ideas at the moment, $HUMBLE, at Sohn San Francisco. The full deck can be accessed here:
- The Alta Fox Capital Q4-2020 letter is now available here:
