| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -4.55% | -21.95% |
| 2025 | 2024 |
|---|---|
| -22.0% | -14.5% |
Ace River Capital returned -4.55% in Q4 2025 and -21.95% for the full year, underperforming the S&P 500 and Russell 2000. The manager attributes poor performance to valuation compression and idiosyncratic events rather than permanent business value impairment. The fund maintains a concentrated portfolio of small- and micro-cap businesses with durable economics and tangible assets, avoiding software, finance, and insurance. Key holdings include Vox Royalty, which has returned 160% since initiation and benefits from record gold prices driven by inflation and geopolitical concerns. RCI Hospitality declined 25% following executive legal charges but trades at crisis valuation despite intact operations. MarineMax position was reduced by half through covered calls given cyclical headwinds. The manager views current small-cap dislocation as creating long-term opportunities, remaining patient and prepared to act when valuations become compelling. Focus remains on intrinsic value over short-term price movements with willingness to tolerate volatility.
Ace River Capital maintains a highly concentrated portfolio of small- and micro-cap businesses with durable economics, tangible assets, and long runways for reinvestment, focusing on companies where competitive advantages are structural rather than ephemeral.
Manager remains patient, focused, and prepared to act when valuations become compelling. Volatility does not concern the manager; permanent capital impairment does. The manager views current small-cap dislocation as creating potential long-term opportunities.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 30 2026 | 2025 Q4 | DSHK, GLFE, HZO, RICK, VOXR | Concentration, gold, real estate, royalties, small caps, value |
VOXR RICK HZO GLFE DSHK |
Ace River Capital's concentrated small-cap strategy delivered disappointing 2025 returns despite strong performance from gold royalty holding Vox Royalty. Legal issues at RCI Hospitality created opportunity at crisis valuations while cyclical headwinds affected MarineMax. Manager remains patient amid small-cap dislocation, viewing current environment as potentially creating best long-term opportunities. |
| Aug 7 2025 | 2025 Q2 | DSHK, HZO, RICK, VOXR | Concentration, Mining, real estate, small caps, value |
RICK VOXR HZO RICK VOXR HZO |
Concentrated small-cap value fund underperformed in Q2 despite strong underlying business fundamentals. Manager maintains conviction in strategy focusing on tangible asset businesses with durable economics. Market disconnect between large-cap tech and ignored small-caps creating attractive opportunities. Portfolio companies like RICK, VOXR, and HZO trade at significant discounts to intrinsic value with strong long-term prospects. |
| May 6 2025 | 2025 Q1 | DSHK, HZO, RICK, VOXR | Acquisitions, concentrated, Long Term, real estate, small caps, value | RICK | Concentrated small-cap fund focused on tangible assets underperformed in Q1 but maintains conviction in roll-up strategies. Top holding RCI Hospitality advances club acquisitions and digital platform while gold royalty position Vox provides market hedge. Manager anticipates recession creating acquisition opportunities and plans tactical additions to cyclical Marine Max position during economic trough. |
| Jan 25 2025 | 2024 Q4 | DSHK, HZO, RICK, VOXR | Concentration, Entertainment, Gold Royalties, real estate, small caps, tangible assets, value |
RICK VOXR.TO |
Concentrated small-cap fund focused on tangible assets returned +8.79% in Q4. Largest holding RCI Hospitality operates adult nightclub monopolies and launched OnlyFans competitor. Vox Royalty shows 55% cashflow growth from new gold royalties. Strategy targets unique real estate and mineral assets with sustainable advantages and long-term growth potential. |
| Oct 23 2024 | 2024 Q3 | DSHK, HZO, RICK, VOXR | Concentration, Entertainment, Mining, real estate, small caps, value | RICK | Ace River Capital runs an ultra-concentrated small-cap strategy with four positions focused on unique real estate assets. Top holding RCI Hospitality dominates adult entertainment with local monopolies, trading at attractive valuations while returning cash through buybacks and dividends. The fund emphasizes substantial positions in asset-backed businesses with competitive moats over diversification. |
| Jul 15 2024 | 2024 Q2 | DSHK, HZO, RICK, VOXR | Buybacks, Casinos, Concentration, Entertainment, Mining, small caps, value | RICK | Concentrated small-cap fund down 14% in Q2 but maintaining conviction in core positions. Top holding RCI Hospitality benefits from adult entertainment licensing scarcity creating local monopolies, while exiting unprofitable casino ventures. Mining royalty play Vox Royalty showing strong performance with production ramp ahead. Strategy focuses on unique competitive advantages with substantial position sizing. |
| May 3 2024 | 2024 Q1 | DSHK, HZO, RICK, VOXR | Concentration, Entertainment, Long Term, Mining, royalties, small caps, value | RICK | Extremely concentrated fund holding only 4 small-cap positions led by RCI Hospitality, an adult entertainment operator with local monopoly characteristics. Manager maintains high conviction despite recent underperformance, adding to Vox Royalty mining royalties position on gold price strength. Strategy explicitly rejects diversification in favor of substantial positions in deeply researched companies with unique competitive advantages. |
| Sep 1 2024 | 2023 Q4 | RICK, VOXR | concentrated, Entertainment, Microcap, Mining, royalties, SmallCap, value |
RICK VOXR |
Concentrated small-cap fund holding RCI Hospitality as top position, the only public adult nightclub owner with local monopoly characteristics. Recently added Vox Royalty Corp for asymmetric commodity exposure through mining royalties. Strategy focuses on fewer than 5 substantial positions with unique advantages, accepting volatility for long-term outperformance despite challenging 2023 performance. |
| Oct 13 2023 | 2023 Q3 | DS, HZO, RICK | Concentration, Entertainment, Leisure, Long Term, Marine, small caps, value |
RICK DSHK HZO |
Concentrated small-cap fund down 22.85% in Q3 2023 but maintaining conviction in three core holdings. Top position RCI Hospitality trades below management's buyback targets despite strong cash flows from adult entertainment monopolies. Drive Shack showing turnaround progress with first profitable quarter. MarineMax offers marine industry consolidation opportunity at attractive 3x cash valuation. |
| Sep 7 2023 | 2023 Q2 | DSHK, RICK | Concentration, Entertainment, Long Term, small caps, value |
RICK DSHK |
Concentrated small-cap fund targeting unique entertainment businesses with monopolistic characteristics. Top positions include RCI Hospitality's adult nightclub chain and Drive Shack's innovative golf entertainment venues. Manager increased Drive Shack position despite recent distress, citing attractive Puttery unit economics and long-term expansion potential. Strategy requires patience and substantial research for 5 or fewer concentrated positions. |
| Mar 31 2023 | 2023 Q1 | HZO, RICK | Concentration, Entertainment, Long Term, small caps, Travel, value |
RICK HZO |
Concentrated small-cap fund focused on niche monopolies. Top holding RICK dominates adult entertainment with acquisition runway of 500 clubs. New position MarineMax targets resilient high-end boat market. Strategy accepts volatility for long-term compounding through businesses with unique advantages and consolidation opportunities in fragmented industries. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
OilOil represents the cheapest major asset class globally, trading near record lows relative to gold despite balanced fundamentals. The closure of the Straits of Hormuz has created the largest supply shock in industry history, disrupting 20 million barrels per day. Non-OPEC supply growth is slowing dramatically, with U.S. shale production plateauing outside the Permian Basin. |
Crude Oil Shale OPEC Supply Disruption Valuation |
Natural GasNatural gas ranks in the 99.5th percentile of historical undervaluation relative to equities. U.S. production growth has concentrated entirely in the Permian Basin, with other shale regions declining. Once the Permian's current gas production surge runs its course, supply growth should plateau and eventually decline. |
Natural Gas Permian LNG Supply Growth | |
CommoditiesThe commodity bull market has barely begun, with most commodities trading 46% below historical nominal peaks and 73% below real peaks. Commodity cycles are fundamentally capital cycles driven by long investment delays. Current extreme undervaluation relative to equities suggests the cycle is only one-third complete. |
Commodity Cycle Capital Investment Valuation Bull Market | |
SilverSilver surged 51% in Q4 and over 140% for the year, staging a dramatic catch-up rally relative to gold. This magnitude of silver outperformance has historically marked important turning points, generating a sell signal for precious metals. The rally parallels the explosive 1979 move that ended the great gold bull market. |
Silver Gold Ratio Precious Metals Sell Signal | |
CopperCopper markets have moved back into surplus with exchange inventories rising to levels last seen in 2003. Despite strong performance in 2025, rising inventories now exceed 1.2 million tonnes, representing roughly 17 days of global demand. The surplus condition suggests a more bearish near-term outlook. |
Copper Inventories Surplus Base Metals | |
Platinum Group MetalsPGMs continued their powerful advance with platinum and palladium each surging 28% in Q4. Policy reversals in the U.S. and Europe are unwinding aggressive EV mandates, supporting longer-term ICE vehicle demand. The bearish narrative built on rapid EV adoption is being rewritten, suggesting the PGM bull market is in early stages. |
Platinum Palladium Auto Catalysts EV Policy | |
UraniumSurging uranium demand is meeting a fragile supply base, creating fundamental tightness in the market. The uranium section discusses supply-demand dynamics in detail, though specific commentary is referenced but not fully detailed in the provided excerpt. |
Uranium Nuclear Supply Demand | |
| 2025 Q2 |
Small CapsManager maintains concentrated focus on small and micro-cap companies with unique advantages and growth potential. Strategy emphasizes tangible assets including special purpose licensed locations, waterfront property, and mineral deposits. Market continues to ignore small-caps while rewarding large-cap tech, creating attractive opportunities. |
Small Caps Micro Cap Concentration Tangible Assets Value |
ValuePortfolio companies trade at deep discounts to intrinsic value despite strong fundamentals. Manager sees disconnect between market pricing and business quality as creating some of the best opportunities in years. Focus on normalized earnings power and long-term compounding returns. |
Value Intrinsic Value Discount Undervalued Earnings Power | |
| 2025 Q1 |
GoldGold prices have increased just under 40% on the year due to economic uncertainty from US tariffs and trade battles. Vox Royalty benefits from this gold price run-up and has served as a hedge against market decline. |
Gold Precious Metals Hedge Trade Wars Economic Uncertainty |
BuybacksRCI Hospitality repurchased over 400,000 shares in 2024 at an average price of $46.55. Marine Max made substantial share repurchases of $12.4MM in Q2 alone. Both companies are actively returning capital to shareholders through buyback programs. |
Share Repurchases Capital Allocation Shareholder Returns | |
| 2024 Q4 |
EntertainmentThe fund's largest position is RCI Hospitality, the only publicly traded owner of adult nightclubs in the US, which operates 57 clubs across 13 states. The company benefits from limited new licensing creating local monopolies with excellent unit economics. RICK has launched Favoritely.com, an OnlyFans-like platform that could become extremely profitable if it attracts sufficient users and entertainers. |
Adult Entertainment Nightclubs Digital Platform Local Monopolies Licensing |
Gold RoyaltiesVox Royalty has increased cashflow 55% year over year for Q3 and 82% for the first three fiscal quarters. The company recently received first revenues from Castle Hill and Bulong gold royalties and expects Otto Bore royalty to begin in Q1 2025. These three royalties alone should add $3-4 million per year, representing 30% growth to current $12 million revenues. |
Mining Royalties Gold Production Cashflow Growth Revenue Streams Production Ramp | |
Commercial Real EstateThe strategy focuses on companies with tangible assets, particularly unique real estate such as special purpose licensed locations, waterfront property and marinas. Marine Max owns marina assets that the manager considers the most interesting part of the business, with capital following the real estate if the company breaks up. |
Marinas Waterfront Property Real Estate Assets Asset Breakup Tangible Assets | |
| 2024 Q3 |
BuybacksRCI Hospitality has responded to share price weakness with aggressive share buybacks, retiring 401,093 shares (4.5% of outstanding) year-to-date. Management's capital allocation strategy includes both share repurchases and dividend increases to create shareholder value. |
Share repurchases Capital allocation Shareholder returns |
DividendsRCI Hospitality announced a 16.7% dividend increase to $0.07 per share in September 2024. The manager views dividend reinvestment as a mechanism to compound returns alongside share buybacks. |
Dividend growth Income Reinvestment | |
| 2024 Q2 |
CasinosManager discusses RCI Hospitality's withdrawal from casino applications in Colorado and plans to sell those properties, viewing this positively as the company lacks competitive advantage in casinos and should focus capital on club acquisitions. |
Adult Entertainment Local Monopolies License Scarcity |
EntertainmentRCI Hospitality operates adult nightclubs functioning as local monopolies due to limited municipal licensing. The company also operates sports-bar restaurants and is launching an OnlyFans-type site called AdmireMe. |
Adult Nightclubs Local Monopolies Digital Platform | |
Gold RoyaltiesVox Royalty holds a portfolio of mining royalties coming into production over the next few years, with strong cash position and no debt. The stock has risen 35.86% over six months. |
Mining Royalties Production Ramp Cash Position | |
BuybacksRCI Hospitality received a $25MM increase in buyback authorization from the board of directors, which the manager views positively given the undervalued share price. |
Share Repurchase Capital Allocation Undervaluation | |
| 2024 Q1 |
CasinosRCI Hospitality operates adult nightclubs functioning as local monopolies with excellent unit economics due to limited licensing. The company is expanding into gaming with two Colorado casinos under construction and has acquisition opportunities in the adult entertainment space. |
Gaming Entertainment Licensing Monopolies Acquisitions |
Gold RoyaltiesVox Royalty appears undervalued compared to other mining royalty companies and should benefit from recent gold price increases. The company has a capital-light business model with a large backlog of projects ensuring future revenue growth. |
Mining Royalties Gold Capital Light Revenue Growth | |
| 2023 Q4 |
Mining ServicesManager initiated a position in Vox Royalty Corp, which operates in mining royalties alternative financing. The company provides one-time payments for future revenue shares from mining operations, offering asymmetric risk/reward tied to commodity prices. Vox maintains a proprietary database of 8500+ existing royalties and recently monetized this asset through an IP licensing agreement. |
Royalties Commodities Alternative Financing Mining Database |
EntertainmentThe fund's top position is RCI Hospitality, the only publicly traded owner of adult nightclubs in the US. The company owns 56 clubs across 13 states plus 13 sports-bar restaurants under the Bombshells concept. These businesses function as local monopolies due to limited municipal licensing, with excellent unit economics and expansion potential through acquisitions and franchising. |
Adult Entertainment Hospitality Franchising Local Monopolies Unit Economics | |
| 2023 Q3 |
EntertainmentThe fund's largest position is RCI Hospitality, the only publicly traded owner of adult nightclubs in the US, which operates 56 clubs across 13 states plus Bombshells sports-bar restaurants. These businesses function as local monopolies with excellent unit economics due to few municipalities issuing new adult entertainment licenses. |
Adult Entertainment Hospitality Franchising Local Monopolies Unit Economics |
LeisureDrive Shack offers immersive experiences through state-of-the-art driving ranges, golf courses, and The Puttery mini-golf venues. The company has undergone major disruption but recently reported its first profit with new Puttery venues, presenting an asymmetric risk/reward opportunity. |
Golf Mini Golf Driving Ranges Experiential Turnaround | |
MarineMarineMax operates a vertically integrated boat and yacht company with manufacturing, retail sales, financing, insurance, maintenance and storage operations. The company has a strong portfolio of marinas and is positioned to roll up additional retailers, marinas, and storage facilities. |
Boats Yachts Marinas Vertical Integration Rollup | |
| 2023 Q2 |
EntertainmentFund holds concentrated positions in unique entertainment concepts including adult nightclubs and golf entertainment venues. RICK operates as local monopolies due to licensing restrictions, while Drive Shack's Puttery concept offers attractive unit economics with 25-33% ROIC potential. |
Adult Entertainment Golf Entertainment Leisure Franchising Unit Economics |
Small CapsManager maintains concentrated portfolio of small and micro-cap companies with unique advantages and growth potential. Strategy focuses on substantial positions in limited number of companies, typically holding no more than 5 positions at a time with significant research and patience required. |
Micro Cap Concentration Value Growth Potential Long Term | |
| 2023 Q1 |
Small CapsManager maintains concentrated portfolio of small and micro-cap companies with unique advantages and growth potential. Strategy focuses on substantial positions in companies that meet strict criteria, typically holding no more than 5 companies at a time. Approach requires significant research and patience with long periods of minimal trading. |
Small Cap Micro Cap Concentration Growth Niche |
EntertainmentTop position RICK operates as the only publicly traded owner of adult nightclubs in the US with 54 clubs across 13 states. These businesses function as local monopolies with excellent unit economics due to few municipalities issuing new adult entertainment licenses. RICK has become the acquirer of choice with a long runway for growth through acquisitions. |
Adult Entertainment Monopoly Acquisitions Cash Generation | |
TravelNew position in MarineMax, a vertically integrated boat and yacht retailer with more exposure to the higher end market. Manager expects the top end of the industry will be more resilient in a downturn than mid-priced and lower segments. Company is focused on growing higher margin businesses and reducing reliance on new boat sales. |
Boats Yachts Luxury Resilience Marinas |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | HZO | MarineMax Inc. | Consumer Discretionary | Leisure Products | Bull | New York Stock Exchange | Asset backed, Cyclicality, Leisure, Marinas, Real Estate | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | GLFE | Green Light Financial Enterprises | Consumer Discretionary | Leisure Facilities | Bull | Dubai Financial Market | asset monetization, illiquidity, Optionality, restructuring, Special situations | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | VOXR | Vox Royalty Corp. | Materials | Precious Metals & Minerals | Bull | New York Stock Exchange | balance sheet, cash flow, Gold, inflation hedge, royalties | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | DSHK | Drive Shack Inc. | Consumer Discretionary | Leisure Facilities | Bull | Dubai Financial Market | asset monetization, illiquidity, Optionality, restructuring, Special situations | Login |
| Jan 30, 2026 | Fund Letters | Nicholas D’Agnillo | RICK | RCI Hospitality Holdings Inc. | Consumer Discretionary | Leisure Facilities | Bull | NASDAQ | Asset Coverage, buybacks, cash flow, Governance, Real Estate | Login |
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | RICK | RCI Hospitality Holdings, Inc. | Consumer Discretionary | Restaurants | Bull | NASDAQ | cashflow, consolidation, Monopolies, Reinvestment, valuation | Login |
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | VOXR | Vox Royalty Corp. | Materials | Precious Metals & Minerals | Bull | TSX | cashflow, Catalysts, Metals, Optionality, royalties | Login |
| Aug 7, 2025 | Fund Letters | Nicholas D’Agnillo | HZO | MarineMax, Inc. | Consumer Discretionary | Specialty Stores | Bull | NYSE | Cyclicality, Margins, Marinas, services, transformation | Login |
| Jul 31, 2025 | Fund Letters | Ace River Capital | HZO | MarineMax Inc | Consumer Discretionary | Specialty Retail | Bull | NYSE | business transformation, Cyclical Recovery, Equity, higher margins, Marina Operations, Marine Retail, recurring revenue, Service revenue | Login |
| Jul 31, 2025 | Fund Letters | Ace River Capital | VOXR | Vox Royalty Corp | Materials | Metals & Mining | Bull | TSX | Capital-light, diversified portfolio, Equity, Free Cash Flow, Mining Royalties, Precious Metals, Production Catalysts, Tier-1 jurisdictions | Login |
| Jul 31, 2025 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | acquisition strategy, Adult Entertainment, cash generation, consolidation, Equity, hospitality, Local Monopoly, Regulatory Moat | Login |
| May 6, 2025 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | acquisition target, Adult Entertainment, cash flow generation, Consolidation Play, Defensive Moat, digital platform, Local Monopolies, Real Estate, Roll-up Strategy, Share Buybacks | Login |
| Jan 25, 2025 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | acquisition strategy, Adult Entertainment, cash generation, Consolidation Play, Licensed Locations, Local Monopoly, Nightclubs, OnlyFans Competitor, Real Estate, Share Buybacks, Tech Platform | Login |
| Jan 25, 2025 | Fund Letters | Ace River Capital | VOXR.TO | Vox Royalty Corp | Materials | Metals & Mining | Bull | TSX Venture Exchange | Australia, cash flow growth, Gold royalties, Mining Royalties, Precious Metals, Production Ramp, Revenue visibility, Royalty streaming | Login |
| Oct 23, 2024 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, consolidation, digital platform, dividend, Free Cash Flow, Monopolistic, Nightclubs, Real Estate, regulatory barriers, Share Buybacks | Login |
| Jul 15, 2024 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, digital platform, Equity, Franchising, hospitality, Local Monopoly, same-store sales, Share Buyback | Login |
| Apr 15, 2024 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, digital platform, Gaming, hospitality, Local Monopoly, M&A, Restaurants, Share Buybacks | Login |
| Dec 31, 2023 | Fund Letters | Ace River Capital | VOXR | Vox Royalty Corp | Materials | Metals & Mining | Bull | NASDAQ | Alternative Financing, Asymmetric Risk, Commodity Exposure, dividend income, Electric Vehicles, Gold exposure, IP Licensing, Mining Royalties, proprietary database | Login |
| Dec 31, 2023 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | acquisition growth, Adult Entertainment, Casinos, digital platform, Franchising, hospitality, Local Monopoly, Nightclubs, Restaurants | Login |
| Oct 31, 2023 | Fund Letters | Ace River Capital | DSHK | Drive Shack Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NYSE | Asymmetric Risk, Entertainment Venues, Golf, Leisure Entertainment, Mini Golf, new management, profitability inflection, turnaround | Login |
| Oct 31, 2023 | Fund Letters | Ace River Capital | HZO | MarineMax Inc | Consumer Discretionary | Specialty Retail | Neutral | NYSE | Boat Retail, capital allocation, Cash Multiple, high-margin, Marinas, Marine Industry, Premium Segments, Roll-up Strategy, vertical integration | Login |
| Oct 31, 2023 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, capital allocation, Cash Flow Yield, Franchising, hospitality, Local Monopoly, Restaurants, Share Buybacks, Sports Bars | Login |
| Jul 31, 2023 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, casino, Franchising, hospitality, Local Licenses, Monopoly, Sports Bars, Unit economics | Login |
| Jul 31, 2023 | Fund Letters | Ace River Capital | DSHK | Drive Shack Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | OTC | bankruptcy risk, Golf Entertainment, Leisure Entertainment, Management Change, Mini Golf, ROIC, turnaround, Unit economics, Venue Expansion | Login |
| Apr 30, 2023 | Fund Letters | Ace River Capital | RICK | RCI Hospitality Holdings Inc | Consumer Discretionary | Hotels, Restaurants & Leisure | Bull | NASDAQ | Adult Entertainment, capital allocation, consolidation, defensive, Franchising, Local Monopolies, Niche Industry, Roll-up | Login |
| Apr 30, 2023 | Fund Letters | Ace River Capital | HZO | MarineMax Inc | Consumer Discretionary | Specialty Retail | Bull | NYSE | defensive, Fragmented Industry, Higher Margin Services, Luxury Marine, Marina Development, Recession Opportunity, vertical integration, Waterfront Real Estate | Login |
| TICKER | COMMENTARY |
|---|---|
| DSHK | During the period, Drive Shack Inc. (DSHK) completed a corporate restructuring that resulted in the rebranding of the equity to Green Light Financial Enterprises (GLFE) along with a change in listing status and trading venue. This transition reflects the company's ongoing efforts to reposition its assets and capital structure following the wind-down of its legacy entertainment operations. The position remains highly speculative and illiquid and is sized accordingly. While near-term fundamentals remain challenged, the thesis is driven by optionality around asset monetization, balance-sheet outcomes, and any improvement in liquidity or strategic direction under the new structure. We do not intend to add to the position and will look to reduce exposure opportunistically if liquidity improves. |
| GLFE | During the period, Drive Shack Inc. (DSHK) completed a corporate restructuring that resulted in the rebranding of the equity to Green Light Financial Enterprises (GLFE) along with a change in listing status and trading venue. This transition reflects the company's ongoing efforts to reposition its assets and capital structure following the wind-down of its legacy entertainment operations. The position remains highly speculative and illiquid and is sized accordingly. While near-term fundamentals remain challenged, the thesis is driven by optionality around asset monetization, balance-sheet outcomes, and any improvement in liquidity or strategic direction under the new structure. We do not intend to add to the position and will look to reduce exposure opportunistically if liquidity improves. |
| HZO | MarineMax remains an attractive long-term asset owner with a valuable portfolio of marinas and waterfront real estate. However, absent near-term catalysts and given the cyclical nature of the retail boating business, I elected to sell in-the-money covered calls during the quarter. The shares were called away, and the position was reduced by roughly half. While I like management's stated shift toward higher-margin service, storage, and marina revenue, it remains unclear how much of this mix shift reflects structural improvement versus cyclical weakness in retail sales. I continue to monitor the position but will remain selective in deploying additional capital. |
| RICK | During the fourth quarter, RCI Hospitality shares declined roughly 25% following the filing of bribery and tax-related charges against the CEO, CFO, and other executives by the New York Attorney General in September 2025. These developments created significant legal and governance uncertainty and drove the stock to what I would describe as crisis valuation without crisis operations. Importantly, the core business remains intact. Cash flow continues, share repurchases have not stopped, and the company now trades below the estimated value of its owned real estate, effectively assigning little value to ongoing earnings power. Short interest has increased to roughly 12% of the float, further compressing an already small share base following recent buybacks. The CEO and CFO have since stepped down, reducing governance risk, and while there may be fines or balance-sheet impacts ahead, I believe much of this risk is already reflected in the stock price. The long-term thesis is unchanged. I view current prices as an opportunity and expect to add to the position as conditions warrant. |
| VOXR | Since initiating a position in Vox Royalty in Q4 2023, it has grown into the Fund's largest holding and has returned approximately 160% at the time of writing. Gold prices continue to reach record highs, driven by inflation concerns, geopolitical instability, and inconsistent trade and fiscal policy. Vox's royalty-based business model provides leveraged exposure to these trends while avoiding the capital intensity and operational risks faced by traditional mining companies. The company continues to add producing royalties, expand cash flow, and maintain a clean balance sheet. I view Vox as both a long-term compounder and a natural hedge against macro uncertainty. No change in thesis. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
