Steel City Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 7.9% net of fees and expenses. For the nine months in 2022, the fund fell 18.2%, net of fees and expenses. Most of the fund’s decline in the quarter happened in August, as some of the fund’s short positions rallied against the fund in the month. For more information on the fund’s top picks in 2022, please check its top five holdings.
Steel City Capital highlighted stocks like Anterix Inc. (NASDAQ:ATEX) in the Q3 2022 investor letter. Headquartered in Woodland Park, New Jersey, Anterix Inc. (NASDAQ:ATEX) is a wireless communication services provider. On November 10, 2022, Anterix Inc. (NASDAQ:ATEX) stock closed at $37.62 per share. One-month return of Anterix Inc. (NASDAQ:ATEX) was 15.79% and in three months its shares lost 39.15% of their value. Anterix Inc. (NASDAQ:ATEX) has a market capitalization of $713.26 million.
Steel City Capital made the following comment about Anterix Inc. (NASDAQ:ATEX) in its Q3 2022 investor letter:
“As for our other spectrum darling – Anterix Inc. (NASDAQ:ATEX) – I frequently field calls from other despondent investors who have or are looking to throw in the towel on their positions. Asked why I don’t do the same, I typically provide two reasons. First, at recent prices (ATEX recently bounced around at ~$30), substantially all of the company’s market cap is covered by 1) proceeds expected from existing deals and 2) the expected value of certain LOIs2 entered into by the company. Second, I believe in the long-term value proposition of the company’s spectrum holdings and I don’t see much benefit in trading around the timing of announcements (no matter how few and far between they are). Selling shares, only to re-enter after another contract announcement, smacks of timing the market / buying high and selling low. And speaking of contract announcements, ATEX announced an 20-year spectrum lease agreement with Xcel Energy roughly a week ago. By my math, the $80 million agreement works out to ~$1.45/MHz-Pop, which like previous contracts, reflects a premium to the level implied by ATEX’s current valuation. The stock has rallied off of its lows and I am hopeful that additional contract announcements will sustain this momentum.”
Anterix Inc. (NASDAQ:ATEX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Anterix Inc. (NASDAQ:ATEX) at the end of the second quarter, which was 16 in the previous quarter.
We discussed Anterix Inc. (NASDAQ:ATEX) in another article and shared investment views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
