Cedar Creek Partners LLC, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The fund recorded a quarterly portfolio return of 6.4% for the fourth quarter of 2021, outperforming the NASDAQ Index, which delivered an 8.3% return for the same period. The fund also outperformed the S&P 500 (SPY) Index’s 11.1% return but outperformed the Russell Micro Cap’s -2.7% return. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Cedar Creek Partners, in its Q4 2021 investor letter, mentioned Concurrent Computer Corp (NASDAQ: CCUR) and discussed its stance on the firm. Founded in 1961, Concurrent Computer Corp is a Duluth, Georgia-based computer systems supplier with a $16.1 million market capitalization, and is currently spearheaded by its CEO, James K. Sims. CCUR delivered a -8.33% return since the beginning of the year, while its 12-month returns are down by -34.76%. The stock closed at $5,500.00 per share on March 10, 2022.
Here is what Cedar Creek Partners has to say about Concurrent Computer Corp in its Q4 2021 investor letter:
“CCUR Holdings (CCUR) is another expert market stock. The company deregistered with the SEC in 2021 after doing a 1-for-3,000 reverse split, reducing the number of shares outstanding to just 2,909. Most recent trade was at $6,000 per share. The company sold its operating business and has cash, equities, and fixed maturity securities. Subsequent to going dark, a SPAC they had co-sponsored with MILFAM, the family office of the estate of Lloyd Miller III, overseen by Neil Subin, and B Riley Securities (RILY), called Spartacus, completed a deal with NextNav (NN), a next generation GPS services and solutions company. They are also involved with MILFAM on a second SPAC, Crixus BH3 Acquisition Company (BHAC). We would estimate current book value at around $20,000 per share, excluding the potential from the second SPAC, or any insurance or legal recovery related to the $13 million loss on an aircraft loan. The fund’s cost basis is above $6,000 per share. We recently purchased additional shares for nearly $7,000. CCUR doesn’t have to knock it out of the park for our investment to do well. If CCUR can earn 5% on its $20,000 per share book value, we would be “earning” $1,000 per share on the current $6,000 valuation, or 16.7%. A 10% return by CCUR would be “equal to” a 33% return for our position in CCUR. We are very comfortable at the current valuation for it to be a 3% position for the fund.”
Photo by Danial Igdery on Unsplash
Our calculations show that Concurrent Computer Corp (NASDAQ: CCUR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Concurrent Computer Corp (NASDAQ: CCUR) delivered a -35.67% return in the past 3 months. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
