Steel City Capital, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly portfolio net return of 8.4% was recorded by the fund for the full year of 2021. This compares to its benchmarks, the S&P 500 and Russell 2000 Index which had 26.9% and 14.5% returns respectively for the same period. During the year, the Partnership’s long book contributed 9.2% to returns. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Steel City Capital, in its Q4 2021 investor letter, mentioned Anterix Inc. (NASDAQ: ATEX) and discussed its stance on the firm. Anterix Inc. is a New Jersey-based wireless communications applications provider with a $1.0 billion market capitalization. ATEX delivered a -5.38% return since the beginning of the year, while its 12-month returns are up by 37.11%. The stock closed at $55.60 per share on February 15, 2022.
Here is what Steel City Capital has to say about Anterix Inc. in its Q4 2021 investor letter:
“The Partnership’s top position continues to be Anterix (ATEX), which is the largest owner of 900 MHz spectrum in the United States. The company is in the process of monetizing its spectrum through sales and leases to utilities to support their ever growing data and communication needs.
ATEX just provided an investor update several days ago. I dialed into the call with an elevated degree of anxiety/fear that we were about to repeat the debacle of September 2020. At that time, expectations were running high for a contract announcement that hadn’t materialized by the time of the call and shares were subsequently clobbered. Going into the call this past week, the company still had not delivered on its guidance to sign at least $200 million worth of contracts by 3/31/2022, and any material shift around this guide would have undoubtedly caused a repeat of the late 2020 price action.
While management opened the door to some slippage beyond their 3/31/2022 target, they also very bullishly framed contract execution as a matter of “when and not if” and backed-up their confidence with commentary that their “Phase 3” pipeline – which comprises contracts in the “closing phase” – has expanded to ~$400 million in value. Frankly, I couldn’t care less if the contracts are announced on 3/15 or 4/15 (as long as it’s this calendar year). What’s important to me is the certitude of ‘when and not if’…” (Click here to see the full text)
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Our calculations show that Anterix Inc. (NASDAQ: ATEX) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. ATEX was in 16 hedge fund portfolios at the end of the third quarter of 2021, compared to 18 funds in the previous quarter. Anterix Inc. (NASDAQ: ATEX) delivered a -9.06% return in the past 3 months.
In October 2021, we also shared another hedge fund’s views on ATEX 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.
