Alta Fox Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. In Q1 2022, the Alta Fox Opportunities Fund (“the Fund”) produced a gross return of -11.71% and a net return of -11.91%. The Fund’s average net exposure during the quarter was 82%. Since its inception in April 2018, the Fund has produced a gross return of 561.70% and a net return of 371.16% compared to the S&P 500’s return of 84.18% and the Russell 2000’s return of 42.39%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Alta Fox Capital mentioned Daseke, Inc. (NASDAQ:DSKE) and explained its insights for the company. Founded in 2008, Daseke, Inc. (NASDAQ:DSKE) is an Addison, Texas-based transport company with a $591.2 million market capitalization. Daseke, Inc. (NASDAQ:DSKE) delivered a -7.17% return since the beginning of the year, while its 12-month returns are up by 14.92%. The stock closed at $9.32 per share on May 04, 2022.
Here is what Alta Fox Capital has to say about Daseke, Inc. (NASDAQ:DSKE) in its Q1 2022 investor letter:
“Daseke (NASDAQ:DSKE): DSKE has fallen 35% from all-time highs and now trades at a ~20% normalized forward free cash flow to equity yield based on our estimates and <7x 2022 PE. Daseke is the largest flatbed/specialized trucking company with ~1% market share in an extremely fragmented $100B US flatbed/specialized market (transport industrial, military and energy materials/equipment). Scaled operators have meaningful competitive advantages over small, independent carriers. These advantages include better contract terms, higher asset utilization, and preferred pricing on equipment, fuel, and insurance.
The ongoing shift in consumer demand from goods to services has caused a violent sell-off in dry van related trucking companies (transport consumer packaged goods) as dry van spot rates have declined by over 20% YTD. Daseke’s stock, being the only publicly traded flatbed/specialized pure play operator, has been the “baby thrown out with the bathwater” and has sold off alongside dry van operators. Meanwhile, flatbed spot rates continue to hit all-time highs as the US industrial economy recovers and leading indicators like new housing starts further increase…” (Click here to see the full text)
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Our calculations show that Daseke, Inc. (NASDAQ:DSKE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Daseke, Inc. (NASDAQ:DSKE) was in 16 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 13 funds in the previous quarter. Daseke, Inc. (NASDAQ:DSKE) delivered a -17.74% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
