Alta Fox Capital Management’s Q1 2019 Investor Letter

Alta Fox Capital Management is a Fort Worth, Texas-based long/short hedge fund, that was launched in April 2018 by Connor Haley. Before launching his own fund, Connor Haley honed his investment acumen as an analyst at Scopia Capital and at Goldman Sachs’ Sachs’ Special Situations Group. He was also investing his personal capital and providing investment advising for his family and friends for more than 10 years. Connor’s expertise is investing in small and micro-cap stocks. He earned an A.B. in Government from Harvard College, graduating magna cum laude. Alta Fox Capital Management has just released its Q1 2019 Investor Letter, which you can track down below. The fund reported beating the S&P 500 in the first three months of 2019 by somewhat higher than 14 percentage points, delivering 28.10% net return.

“Limited Partners,

In Q1 2019, the fund increased 35.14% gross and 28.10% net compared to 13.65% for the S&P 500. The average net exposure during the quarter was 80.36%. Since inception in April 2018, the fund has returned 47.77% gross and 36.63% net compared to 9.50% for the S&P 500, 2.05% for the Russell 2000, and -2.36% for the Russell Microcap Index. See appendix for further details.

I am proud of the fund’s early results. We managed to outperform both the general market and small and micro-cap indices during both a bearish environment last year and thus far in a bullish environment in 2019. Most importantly, we have accomplished these results with strict risk controls, no gross leverage, and a disciplined research process.

While I am pleased the fund is off to a strong start, I attempt to ignore short-term fluctuations and instead focus on the intrinsic value growth in our portfolio holdings, which over the long-run should converge with portfolio performance. I encourage limited partners to do the same (both in times of outperformance and underperformance). I firmly believe that in the long-run, our strategy of buying high-quality and underfollowed businesses at cheap prices will deliver attractive absolute and relative returns.”

You can download a copy of Alta Fox Capital Management’s Q1 2019 Investor Letter here:

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You can also see the list of our 2019 Q1 investor letters and download them on this page.