Artko Capital, an asset management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth calendar quarter of 2021, an average partnership interest in Artko Capital LP was down 3.4% net of fees. At the same time, investments in the most comparable market indexes—Russell 2000, Russell Microcap, and the S&P 500—were up 2.1%, down 2.7%, and up 8.6%, respectively. For the calendar year of 2021, an average partnership interest in Artko Capital LP was up 19.4% net of fees. At the same time, investments in the aforementioned market indexes were up 14.8%, 19.3%, and 28.7%, respectively. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Artko Capital, in its Q4 2021 investor letter, mentioned Global Indemnity Group, LLC (NASDAQ:GBLI) and discussed its stance on the firm. Founded in 2003, Global Indemnity Group, LLC (NASDAQ:GBLI) is a Bala Cynwyd, Pennsylvania-based indemnity company with a $380.4 million market capitalization, and is currently spearheaded by its CEO, David S. Charlton. Global Indemnity Group, LLC (NASDAQ:GBLI) delivered a 3.70% return since the beginning of the year, while its 12-month returns are down by -12.11%. The stock closed at $26.06 per share on March 18, 2022.
Here is what Artko Capital has to say about Global Indemnity Group, LLC (NASDAQ:GBLI) in its Q4 2021 investor letter:
“We sold our approximately 6.5% position in Global Indemnity Group in the fourth quarter of 2021 at approximately $26.00 per share, and with the dividends that we received since our investment, walked away with a less than 1% loss. Our investment thesis in this 0.5x book value, $320mm market cap insurer, was predicated on the management using the $250mm it was able to release from its insurance subsidiary to the holding company to return capital to the shareholders. However, the company continued to stonewall its investors by delaying its investor day a number of times; refusing to answer valid questions from shareholders on its extensive arms lengths relationships with its sponsors, and the associated fees paid to them; and upon finally holding the investor day in the fall of 2021 sharing a completely unfeasible, and what we believed to be value destructive, strategic plan. The investor day was our “event” where we were hoping the company would unlock substantial value for the shareholders and since, instead, we confirmed our suspicions of a shareholder unfriendly management team, it was an easy decision to sell and to deploy capital to a more lucrative opportunity.”
Our calculations show that Global Indemnity Group, LLC (NASDAQ:GBLI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Global Indemnity Group, LLC (NASDAQ:GBLI) was in 5 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 5 funds in the previous quarter. Global Indemnity Group, LLC (NASDAQ:GBLI) delivered a 2.36% return in the past 3 months.
In September 2021, we also shared another hedge fund’s views on Global Indemnity Group, LLC (NASDAQ:GBLI) 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.
