The Cable Car Capital’s Hedged Value portfolio returned 0.1% net of fees in May during a relatively quiet month. At month-end, Hedged Value was conservatively positioned in my opinion.
Approximately 11.5% of the strategy’s gross long exposure relates to two short-term special situations that arose through corporate tender offers. The portfolio’s current low net exposure and significant cash allocation reflect both a deliberate effort to maintain flexibility for future such opportunities, as well as the scarcity of attractively valued long candidates in the current market environment.
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Here is an excerpt from a recent quarterly report to clients that explains my current approach to investing:
DISCLAIMER: Certain information contained in this presentation is based upon forward-looking statements, information and opinions, including descriptions of anticipated market changes and expectations of future activity. The manager believes that such statements, information and opinions are based upon reasonable estimates and assumptions. However, forward-looking statements, information and opinions are inherently uncertain and actual events or results may differ materially from those reflected in the forward-looking statements. Therefore, undue reliance should not be placed on such forward-looking statements, information and opinions.
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