Alluvial Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. Alluvial Fund closed out an excellent year on a quiet note, returning 0.5% in the fourth quarter. For the full year, Alluvial Fund rose 31.0%, nearly double the returns of benchmarks. 2021 was the finest year in Alluvial Fund’s history, the first in which our net return to limited partners exceeded 30%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Alluvial Capital Management, in its Q4 2021 investor letter, mentioned P10, Inc. (NYSE: PX) and discussed its stance on the firm. P10, Inc. is a Dallas, Texas-based capital market company with a $1.4 billion market capitalization. PX delivered a -12.37% return since the beginning of the year, while its 12-month returns are up by 42.92%. The stock closed at $12.25 per share on January 21, 2022.
Here is what Alluvial Capital Management has to say about P10, Inc. in its Q4 2021 investor letter:
“P10, Inc. remains the fund’s largest holding. The company’s latest achievement is successfully refinancing its debt, lowering the interest rate from 7.00% to 2.25% and extending the term. This new agreement provides P10 with plenty of available capital to pursue its acquisitions strategy and build its stable of alternative investment managers. Assets under management should soon exceed $17 billion, with a clear path to $20 billion and higher. P10’s only disappointing aspect has been its lackluster share price movement since its IPO. Despite its peerless cash flow profile and predictability, growth options, and management skill and alignment, shares continue to change hands at just 17x my estimate of current free cash flow. I remind myself that though P10 is now an NYSE-listed company, the value of its free-floating stock is just $260 million. For trading purposes, P10 is still just a micro-cap. It should be no surprise that it acts like one.
I expect the market to change its assessment of P10 in the course of the year as the firm reports growing assets under management and perhaps an acquisition or two. P10’s story has been one of remarkable speed and agility. The firm’s rapid development makes quarter-to-quarter comparisons of little use. With so much change, it’s no surprise that the market occasionally falls behind, failing to appreciate the ongoing transformation. If we do end up in a bearish market environment, there is a lot to be said for a company that knows what its revenues will be almost down to the penny for years to come.”
Our calculations show that P10, Inc. (NYSE: PX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. P10, Inc. (NYSE: PX) delivered a -2.00% return in the past 3 months.
In November 2021, we also shared another hedge fund’s views on PX in another article. 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.
