| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 19.4% | -4.6% | -4.6% |
1 Main Capital returned -4.6% in Q1 2026, underperforming due to a 25% decline in IWG following AI disruption fears and geopolitical tensions. The manager reinitiated a core position in KKR after a 30% decline driven by private credit concerns, viewing it as a top-tier alternative asset manager positioned to gain market share. Despite near-term volatility from the Iran conflict and oil price increases, the portfolio remains focused on high-quality, cash-generative businesses with limited commodity exposure. The manager sees a bifurcated market with expensive growth assets versus ignored quality businesses, positioning firmly in the latter camp. Small caps showed momentum through the quarter with supportive macro conditions including strong labor markets and broadening economic expansion. The fund's concentrated approach targets companies trading at attractive valuations relative to long-term fundamentals, with management teams that use downturns strategically. While geopolitical outcomes remain unpredictable, the manager expresses confidence in the portfolio's positioning for either scenario and strong prospective performance.
1 Main Capital focuses on small, high-quality, undervalued businesses that generate significant free cash flow and are well-positioned regardless of macro scenarios, with particular emphasis on companies trading at attractive valuations relative to their long-term fundamentals.
Manager sees a bifurcated market with expensive growth assets on one side and high-quality, cash-generative businesses being ignored on the other. The fund is positioned in the latter camp. Management teams use downturns to acquire competitors, buy back shares, and widen moats. While timing is uncertain, the manager remains confident in strong prospective performance.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 30 2026 | 2026 Q1 | IWG.L, KKR | AI, Alternative Asset Managers, Commercial real estate, oil, private credit, small caps, value |
IWG KKR |
1 Main Capital declined 4.6% in Q1 2026, hurt by IWG's 25% drop on AI fears and geopolitical tensions. The fund reinitiated KKR after a 30% decline, viewing private credit concerns as overblown. Despite near-term uncertainty from Iran conflict, the manager remains confident in the portfolio's high-quality, cash-generative businesses positioned for strong long-term performance. |
| Jan 24 2026 | 2025 Q4 | BFIT.AS, DNTL, IWG.L, LMB, MBUU, MCFT, PRKR, RLGT, SUP, WATR | Building Systems, concentrated, FCF, Industrial Services, small caps, value | LMB | 1MC delivered 20.1% net returns in 2025 through concentrated investing in undervalued small-cap businesses. The fund's largest winners contributed 30% gross while successful position management limited downside from detractors. Manager significantly increased Limbach Holdings position after 55% decline, viewing the building systems company as mispriced given its successful transition to higher-margin business model. |
| Oct 7 2025 | 2025 Q3 | BFIT.AS, DNTL.TO, IWG.L, KKR, LMB, MBUU, MCFT, RICK, RLGT | Capital Allocation, Concentration, cyclicals, fundamentals, Logistics, small caps, value | RLGT | 1MC returned 6.3% net in Q3, underperforming indices as top holdings IWG and BFIT declined. The concentrated value fund initiated Radiant Logistics at 7x EBITDA and partially sold DNTL after acquisition announcement. Manager remains confident in multi-bagger potential of core holdings despite economic uncertainty, focusing on fundamentally strong businesses trading at low multiples with patient capital approach. |
| Aug 23 2025 | 2025 Q2 | BFIT.AS, DNTL.TO, IWG.L, MCFT, SSUP, WATR.L | alpha, Concentration, Cyclical, small caps, value |
MCFT MCFT |
1MC outperformed in Q2 by focusing on ignored small-cap value opportunities while markets chase large tech. The fund re-initiated MasterCraft Boat as dealer destocking ends and maintains concentrated positions in quality businesses trading below intrinsic value. Market bifurcation creates ideal conditions for disciplined fundamental investors. |
| Apr 30 2025 | 2025 Q1 | ARVN, BFIT.AS, CZR, DNTL.TO, ENZ, IWG.L, NVS, PFE, THRD, WATR.L | Biotechnology, Cash, Defensive, small cap, Trade Policy, value, volatility |
ARVN THRD ENZ |
1 Main Capital outperformed benchmarks in Q1 with defensive positioning in service-oriented businesses while opportunistically investing in distressed biotech companies trading below cash. Manager remains concerned about trade war impacts but optimistic medium-term, expecting policy corrections. Portfolio concentrated in top five positions representing 70% of capital, with new Cannell Capital partnership providing additional resources and stability. |
| Feb 14 2025 | 2024 Q4 | BFIT, CZR, DNTL.TO, IWG.L, WATR.L | Concentration, Flexible Office, market breadth, Passive investing, small caps, value |
IWG.L SUP.TO |
Concentrated value fund underperformed in Q4 as narrow market leadership favored mega-caps over smaller companies. Top holding IWG declined despite business progress in transitioning to asset-light model. Historic market concentration and passive flows create mispricing opportunities. Portfolio positioned defensively for constrained growth environment while avoiding labor-dependent and import-reliant businesses. |
| Oct 25 2024 | 2024 Q3 | AAPL, BFIT, CZR, DNTL.TO, IWG.L, LMB, PRKR, QCOM | Concentration, Fed policy, Litigation, rates, small caps, value | PRKR | 1 Main Capital's concentrated small-cap portfolio underperformed in Q3 despite the Russell 2000 rally, with economically sensitive top holdings remaining down year-to-date. The fund added a speculative litigation play in ParkerVision with 20-50x potential upside. Manager expects controlled economic growth with Fed support, maintaining conviction in current positioning for medium-term outperformance. |
| Jul 27 2024 | 2024 Q2 | BFIT, BNED, CZR, DNTL.TO, FUN, IWG.L, LMB | Concentration, Education, Opportunistic, Recapitalization, small caps, value | BNED | 1 Main Capital delivered 12.8% net returns in Q2 through concentrated small cap value investing, with four positions driving most performance. Manager maintains conviction in multi-decade underperforming small caps trading at attractive valuations, adding opportunistic position in Barnes & Noble Education post-recapitalization. Portfolio of cheap, well-capitalized companies positioned for economic cycles with significant upside potential. |
| May 16 2024 | 2024 Q1 | BFIT, CZR, DNTL.TO, ENZ, IWG.L, LMB | Concentration, FCF, gaming, small caps, underperformance, value | CZR | Concentrated small-cap value fund underperformed in Q1 but manager views this as temporary noise rather than fundamental issues. Top holdings trade at compelling valuations below 10x maintenance FCF despite being down significantly from highs. New position Caesars Entertainment expected to generate substantial free cash flow growth. Small-cap underperformance cycle creates attractive opportunities for patient capital. |
| Jan 23 2024 | 2023 Q4 | DNTL.TO, ENZ, IWG.L, KKR, LMB, RICK | Concentration, Quality, Roll-ups, small caps, value | CLMB | 1 Main Capital delivered 48.9% returns in 2023 through concentrated investments in undervalued, high-quality businesses. The Fund focuses on public roll-ups like dentalcorp, IWG, and Limbach Holdings, where strong management teams consolidate fragmented industries. Despite macro uncertainties, the manager maintains high conviction that current holdings remain significantly undervalued with attractive growth prospects. |
| Nov 11 2023 | 2023 Q3 | DNTL.TO, ENZ, IWG.L, LMB, SP | Concentration, fundamentals, small caps, technology, value |
^GSPC ENZ |
1 Main Capital Partners outperformed major indices in Q3 despite a slight decline, with YTD returns of 20.3%. Manager Yaron Naymark runs a concentrated small-cap portfolio, capitalizing on nonfundamental flows that temporarily depress quality businesses. With 75% in top five positions and a focus on fundamental value, the fund targets mispriced opportunities in an environment favorable for skilled stock pickers. |
| Jul 23 2023 | 2023 Q2 | BFIT, DNTL.TO, IWG.L, KKR, LMB | Concentration, Europe, Quality, small cap, value |
BFIT DNTL.TO IWG.L KKR CLMB |
Concentrated small-cap value manager delivered 20.6% first-half returns through disciplined focus on recurring-revenue businesses trading below normalized earnings. Top holdings include European gym operator Basic-Fit, Canadian dental consolidator dentalcorp, and alternative asset manager KKR. Portfolio positioned defensively for potential economic slowdown while maintaining conviction in quality businesses that can capitalize on downturns. |
| Apr 13 2023 | 2023 Q1 | DNTL.TO, LMB | Consolidation, growth, healthcare, Industrial, Quality, small cap, value |
DNTL.TO CLMB |
1 Main Capital outperformed benchmarks with 12.2% Q1 returns, adding dentalcorp Holdings and re-entering Limbach Holdings. Manager sees exceptional value opportunities despite banking stress and economic slowdown. Maintains concentrated approach focused on quality businesses at attractive valuations, expressing highest conviction in current portfolio since fund inception in 2018. |
| Jan 24 2023 | 2022 Q4 | APG, FIGS | - | - | |
| Jan 11 2022 | 2022 Q3 | IWG LN, KKR | - | WILC |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Alternative Asset ManagersKKR represents a compelling investment as a top-tier mega-alt positioned to take share within alternatives. Despite private credit concerns, KKR's diversified fee base across PE, real assets, and credit provides resilience. The firm has grown AUM from $200B to $700B and targets exceeding $1T by 2030. |
Private Equity Credit AUM Fees Growth |
AIAI disruption fears are overblown for portfolio companies. For IWG, AI should drive startup formation and accelerate enterprise adoption of short-term leases. KKR has minimal software exposure at 7% of AUM and has incorporated AI risks into underwriting for years. |
Disruption Startups Software Risk | |
Private CreditPrivate credit bubble fears are exaggerated, particularly for KKR. Direct lending represents less than 20% of KKR's credit book and just 5% of total AUM. The firm's credit business is diversified across leveraged credit and asset-based finance backed by hard assets. |
Bubble Direct Lending Diversification Risk | |
Commercial Real EstateIWG benefits from rising office vacancies created by shrinking demand for long-term leases, generating a growing pipeline of landlords open to partnering under its asset-light managed partnership model. This creates more short-term supply and demand for IWG's services. |
Vacancies Partnerships Asset Light Demand | |
OilOperation Epic Fury resulted in rising oil prices that contributed to IWG's pullback and introduced meaningful uncertainty. Higher oil prices may cause near-term economic slowdown but should have no meaningful bearing on long-term business value. |
Prices Geopolitical Economic Temporary | |
Small CapsSmall caps entered 2026 with significant momentum and continued to lead through the quarter. The environment for small, high-quality, undervalued businesses looks particularly attractive given supportive macro backdrop and broadening economic expansion. |
Momentum Quality Undervalued Expansion | |
| 2025 Q4 |
AIAI has been the defining theme of market leadership in 2025, driving data center capex and benefiting semis, electrical equipment, and tech hardware. The theme experienced volatility in Q4 with concerns over durability, but reasserted dominance after NVIDIA's strong earnings. AI data centers require enormous power, creating opportunities for companies like Bloom Energy. |
Data Centers Semiconductors Power Infrastructure |
ElectrificationThe portfolio maintains its largest absolute and relative exposure to the Electrification theme within Industrials. However, the manager has modestly reduced exposure to some larger holdings in this theme during the quarter. |
Power Grid Infrastructure Energy | |
BiotechBiotech was a standout performer during the quarter, delivering its best quarter in five years. Performance was driven by an improving rate environment, easing regulation with more M&A activity, and excitement around AI's promise in driving efficiencies in drug discovery. |
Pharmaceuticals M&A Drug Discovery | |
SolarFirst Solar benefited from Trump Administration's 'One Big Beautiful Bill' which drove US demand for non-China solar products. The company differentiates with thin-film CdTe technology offering better performance in hot/humid/low light conditions. |
Renewable Energy Manufacturing Trade Policy | |
SpaceRocket Lab operates as an end-to-end space company in Launch Services and Space Systems segments. The stock was up nearly 50% in the quarter on strong earnings and growing backlog, though the manager's late initiation meant it was a relative performance detractor. |
Defense Satellites Launch Services | |
| 2025 Q3 |
Value1MC invests in good businesses with aligned management at low multiples that have slowly de-rated but continued to execute over long periods. The fund seeks companies that have endured stagnant periods despite healthy underlying cash generation and growth, with poor investor sentiment signaling attractive entry points. |
Value Multiples Fundamentals Mispricing Contrarian |
LogisticsThe fund initiated a new core investment in Radiant Logistics, an underfollowed non-asset based third-party logistics company trading at 7x trailing EBITDA. The company operates through an agency network and has grown revenues 35 times since 2006 while maintaining a pristine balance sheet. |
Logistics 3PL Transportation Freight Network | |
Small CapsThe fund focuses on small-cap investments where non-fundamental flows can overwhelm fundamental flows, especially when there is economic concern. This creates compelling entry points for disciplined investors with patient capital, as demonstrated by investments in RLGT and ski/wake boat manufacturers. |
Small Caps Russell 2000 Illiquidity Mispricing Patient Capital | |
| 2025 Q2 |
ValueThe fund focuses on buying good businesses with aligned management at attractive prices, particularly when the market has given up on names. Small boring businesses are being ignored while large tech commands outsized valuations, creating opportunities for disciplined value investors. |
Value Undervalued Attractive Prices Market Dislocation Fundamentals |
Small CapsThe fund is concentrated in small-cap investments, noting that profitable companies in the Russell 2000 trade at 16x forward earnings compared to 22x for the S&P 500. This valuation gap creates opportunities as small caps are being ignored by the market. |
Small Caps Russell 2000 Valuation Gap Ignored Stocks | |
FitnessBasic-Fit was one of the largest contributors in Q2, appreciating 37%. The fund continues to own it in size and remains optimistic about its continued performance. |
Fitness Basic-Fit European Fitness Gym Chains | |
| 2025 Q1 |
BiotechnologyThe Fund made several new biotech investments in Q1, representing a low double-digit percentage of assets. Manager is focusing on simple assets like cash and shareholder incentives rather than deep science understanding. Examples include Arvinas with over $1 billion in cash and significant licensing agreements, and Third Harmonic Bio which announced dissolution and cash return to shareholders. |
Cash Licensing Pipeline Dissolution Strategic Review |
Trade PolicyManager expresses concern about current trade war policies, noting they are tough to rationalize and will harm the economy without leading to meaningful reshoring. Companies cannot reshore capacity overnight and are pausing discretionary activity until uncertainty subsides. Manager advocates for more targeted approach with select tariffs in key areas like semiconductors, pharmaceuticals, and autos. |
Tariffs Reshoring Supply Chain Policy Uncertainty Manufacturing | |
ResilienceThe Fund is positioned defensively with minimal direct exposure to businesses most impacted by trade war or weakening economy. Portfolio is weighted towards service-oriented businesses with limited macro sensitivity. Manager emphasizes holding businesses that should thrive in any environment and believes the Fund is well-positioned for strong future performance despite market turbulence. |
Defensive Service-Oriented Macro Sensitivity Positioning Volatility | |
| 2024 Q4 |
Flexible OfficeIWG is the global leader in flexible office space with $4 billion of system sales across 4k+ locations. The company is transitioning to a managed workspace model where landlords fund buildouts while IWG collects recurring management fees. The managed and franchised segment is expected to grow from 15% to nearly half of system sales by decade end. |
Coworking Real Estate Asset Light Management Fees Recurring Revenue |
Market ConcentrationThe ten largest companies in the S&P 500 now represent almost 40% of the index, a historic level. Market breadth was narrow in 2024 with gains largely driven by the largest US mega-caps. The forward P/E multiple of the top ten is approaching 30x, significantly higher than smaller companies. |
Mega Caps Concentration Valuations Market Breadth Passive Flows | |
Passive InvestingThe continued shift of assets from active to passive strategies creates nonfundamental flows that can distort asset prices. As money is pulled from active strategies and allocated to passive indexes, cheap stocks get sold and expensive stocks get bought, creating opportunities for active managers to capitalize on mispricings. |
Active Management Price Distortions ETFs Index Funds Mispricing | |
| 2024 Q3 |
Small CapsSmall cap valuations had become unusually cheap relative to their large cap counterparts. Small cap earnings are more sensitive than large caps to economic growth and interest rates. The RTY rally began early in the quarter when inflation data came in below expectations, spurring optimism that the Fed would begin to cut interest rates. |
Valuations Interest Rates Economic Growth Fed Policy Russell 2000 |
RatesThe Fed waited too long to cut rates and an economic slowdown is inevitable. Powell wants to be remembered as Fed Chair Volker, not Burns, meaning he will keep rates as high as he can for as long as he can, or until we see a looming slowdown. Any coming recession would likely be met with lower rates and fiscal stimulus. |
Fed Policy Interest Rates Economic Slowdown Monetary Policy Recession | |
| 2024 Q2 |
Small CapsManager believes small caps provide highly attractive long-term investment opportunities due to fatigue from multi-decade underperformance and increased volatility during economic uncertainty. The Fund's performance was driven by just four small cap stocks representing under one-third of the portfolio. |
Value Underperformance Volatility Opportunities |
EducationBNED operates 1,245 college bookstores serving 6 million students and launched First Day Complete program providing course materials at discounted rates with 80% revenue uplift upon adoption. The company needed recapitalization due to pandemic pressures but offers significant growth potential. |
Bookstores Students Textbooks Digital | |
| 2024 Q1 |
Small CapsManager discusses extreme underperformance of small caps versus large caps over the last 5 years, noting this is one of the most extreme cycles in history dating back to 1926. Small cap underperformance driven by differences in earnings growth and multiple compression, with unprofitable companies dragging down overall index performance. Manager believes this creates attractive opportunities in small and mid-cap space. |
Russell 2000 Size Factor Valuation Earnings Multiples |
ValueFund strategy focuses on investing in good businesses with attractive growth prospects at low valuations. Current top 5 holdings trading below 10x maintenance FCF and 53.4% below post-COVID highs on weighted average basis. Manager believes these represent compelling value at current prices with strong growth prospects. |
Valuation FCF Undervalued Growth Maintenance | |
GamingNew position in Caesars Entertainment, one of largest gaming and hospitality companies in US with 52 properties across 18 states. Company has grown EBITDAR by nearly $1 billion since 2020 acquisition, with significant investments in physical properties and digital platform that should drive future cash flow generation to $2 billion annually. |
Caesars EBITDAR Digital Properties Cash Flow | |
| 2023 Q4 |
ValueManager focuses on high-quality, well-managed businesses trading at attractive multiples that represent upside rather than downside to investment value. Emphasizes finding undervalued companies with attractive growth prospects where multiple expansion can contribute to returns alongside earnings growth. |
Undervalued Multiple Expansion Quality Growth Attractive Multiples |
| 2023 Q3 |
Small CapsSmall-cap stocks continue to trade as though the economy is at peak levels and a recession is imminent. The lack of investor confidence in near-term fundamentals is leading to exacerbated moves when nonfundamental flows occur. This creates an excellent environment for good stock pickers. |
Small Caps Value Cyclical |
ValueThe Fund's current portfolio consists of businesses that have greater earnings power and lower valuations due to changes in composition, as well as organic growth, cash generation, and capital deployment at underlying businesses. The manager believes this creates a more attractive expected prospective return profile. |
Value Earnings Quality | |
| 2023 Q2 |
ValueManager focuses on high-quality businesses trading at below-market multiples with conservative assumptions. Emphasizes companies that are cheap on normalized earnings and currently under-earning rather than over-earning to benefit from potential overextrapolation. |
Value Multiples Normalized Earnings Conservative Quality |
FitnessBasic-Fit is the largest low-cost gym operator in Europe with 1,300 locations and 4 million members. The company is expected to surpass pre-COVID membership levels this year and plans to continue growing locations by 15%+ annually with strong unit economics. |
Fitness Gyms Europe Membership Growth | |
Alternative Asset ManagersKKR has grown AUM from under $200 billion to over $500 billion with dry powder exceeding $100 billion. Many businesses remain subscale including real estate, infrastructure, credit, and Asia, with potential for several multiples of AUM growth. |
Alternative Assets AUM Private Equity Growth Scale | |
Commercial Real EstateIWG is transitioning to a capital-light business model and stands to benefit from high office vacancies as landlords explore managed partnerships. The company is likely to re-list in the US within twelve to eighteen months. |
Flex Office Real Estate Capital Light Partnerships Office | |
| 2023 Q1 |
ValueManager emphasizes finding high quality businesses at attractive valuations, describing current portfolio as having low valuations with strong growth prospects. Views current environment as providing plentiful opportunities for exceptional forward returns despite market pessimism. |
Value Valuations Undervalued Attractive Quality |
HealthcareInitiated position in dentalcorp Holdings, Canada's largest dental practice operator. Views dental service organizations as solid businesses with diversified cash-paying customer base, resistant to technological disruption and economic fluctuations. Sees consolidation opportunity in fragmented market. |
Healthcare Dental Consolidation Defensive Cash | |
Industrial ServicesRe-entered Limbach Holdings position after CEO change, viewing new leadership as right for the business. Company transitioning from lower-margin general contractor work to higher-margin owner-direct relationships, driving EBITDA margin expansion from 3% to 6%. |
Industrial Services Margins Transition Infrastructure |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 30, 2026 | Fund Letters | 1 Main Capital | IWG | International Workplace Group | Other | Specialized REITs | Bull | London Stock Exchange | AI Beneficiary, asset-light model, Co-working, Flexible Workspace, management fees, operating leverage, Share Buybacks | Login |
| Apr 30, 2026 | Fund Letters | 1 Main Capital | KKR | KKR & Co | Asset Management | Asset Management & Custody Banks | Bull | New York Stock Exchange | Alternative Asset Manager, AUM growth, Credit, insider buying, management fees, Mega-alts, private equity, Real assets | Login |
| Jan 24, 2026 | Fund Letters | Yaron Naymark | LMB | Limbach Holdings, Inc. | Industrials | Commercial & Professional Services | Bull | NASDAQ | Acquisitions, Buildingsystems, Freecashflow, infrastructure, Margins, Ownerdirect | Login |
| Oct 7, 2025 | Fund Letters | Yaron Naymark | RLGT | Radiant Logistics | Industrials | Air Freight & Logistics | Bull | NYSE | 3pl, Acquisitions, capital allocation, compounding, Freight, Logistics, Transportation, valuation | Login |
| Aug 23, 2025 | Fund Letters | Yaron Naymark | MCFT | MasterCraft Boat Holdings, Inc. | Consumer Discretionary | Recreational Vehicles | Bull | NASDAQ | boats, buybacks, Cyclical, Recreation, turnaround | Login |
| Aug 1, 2025 | Fund Letters | 1 Main Capital | MCFT | MasterCraft Boat | Consumer Discretionary | Leisure Products | Bull | NASDAQ | brand loyalty, Cyclical Recovery, Dealer Destocking, leisure products, net cash, operating leverage, recreational boats, Share Buybacks | Login |
| Jul 8, 2025 | Seeking Alpha | Quipus Capital | WILC | G Willi-Food International | Consumer Staples | Food Distribution | Neutral | NASDAQ | — | Login |
| Apr 1, 2025 | Fund Letters | 1 Main Capital | THRD | Third Harmonic Bio | Pharmaceuticals, Biotechnology & Life Sciences | Biotechnology | Bull | NASDAQ | arbitrage, Biotech, Cash-Return, Liquidation, Special Situation, strategic review | Login |
| Apr 1, 2025 | Fund Letters | 1 Main Capital | ARVN | Arvinas | Pharmaceuticals, Biotechnology & Life Sciences | Biotechnology | Bull | NASDAQ | Biotech, cash-rich, clinical stage, Distressed, Partnership, PROTAC, Protein degraders, Value | Login |
| Apr 1, 2025 | Fund Letters | 1 Main Capital | ENZ | Enzo Biochem | Health Care | Life Sciences Tools & Services | Neutral | NYSE | Asset backed, book value discount, diagnostics, life sciences, Net-Net, strategic review, turnaround | Login |
| Feb 1, 2025 | Fund Letters | 1 Main Capital | IWG.L | International Workplace Group | Real Estate | Specialized REITs | Bull | London Stock Exchange | asset-light model, cash generation, Coworking, Flexible Workspace, Franchising, GAAP Transition, Global, Managed services, Real Estate, Share Buybacks | Login |
| Feb 1, 2025 | Fund Letters | 1 Main Capital | SUP.TO | Superior Industries International | Consumer Discretionary | Auto Parts & Equipment | Bull | Toronto Stock Exchange | automotive, cash generation, Cost Reduction, Cyclical Recovery, debt refinancing, Europe, high-risk, manufacturing, Wheels | Login |
| Oct 1, 2024 | Fund Letters | 1 Main Capital | PRKR | ParkerVision Inc | Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | Binary Outcome, Intellectual Property, Opportunistic, Patent Litigation, RF Technology, semiconductors, Special Situation, Technology Patents, Wireless Communication | Login |
| Jul 1, 2024 | Fund Letters | 1 Main Capital | BNED | Barnes & Noble Education | Consumer Discretionary | Specialty Retail | Bull | NYSE | Bookstores, College, Education, Equity, growth, recapitalization, turnaround, US | Login |
| Apr 1, 2024 | Fund Letters | 1 Main Capital | CZR | Caesars Entertainment | Consumer Discretionary | Casinos & Gaming | Bull | NASDAQ | Casinos, Digital transformation, EBITDAR Growth, Free Cash Flow, Gaming, hospitality, iGaming, Las Vegas, Real Estate, Sports betting, synergies, turnaround | Login |
| Jan 1, 2024 | Fund Letters | 1 Main Capital | CLMB | Limbach Holdings | Industrials | Construction & Engineering | Bull | NASDAQ | Building Systems, consolidation, construction, Engineering services, HVAC, Management Change, Roll-up, turnaround | Login |
| Nov 1, 2023 | Fund Letters | 1 Main Capital | ^GSPC | SP Plus Corporation | Commercial & Professional Services | Commercial Services & Supplies | Bull | NASDAQ | acquisition target, asset-light, management contracts, market share gains, Parking, Real Estate Services, technology platform | Login |
| Nov 1, 2023 | Fund Letters | 1 Main Capital | ENZ | Enzo Biochem Inc | Health Care Equipment & Services | Life Sciences Tools & Services | Bull | NYSE | acquisition target, Activist Situation, Asset Sale, biotechnology, cash-rich, life sciences, patents, turnaround | Login |
| Jul 1, 2023 | Fund Letters | 1 Main Capital | BFIT | Basic-Fit | Consumer Discretionary | Leisure Facilities | Bull | Euronext Amsterdam | Defensive Consumer, European expansion, Low-cost fitness, market consolidation, post-COVID recovery, recurring revenue, Unit economics | Login |
| Jul 1, 2023 | Fund Letters | 1 Main Capital | DNTL.TO | dentalcorp | Health Care | Health Care Services | Bull | Toronto Stock Exchange | Canadian market, cash generation, Defensive Healthcare, Dental Services, Healthcare consolidation, Practice acquisitions, strategic review | Login |
| Jul 1, 2023 | Fund Letters | 1 Main Capital | IWG.L | IWG | Real Estate | Office REITs | Bull | London Stock Exchange | capital-light model, Contrarian Investment, Flexible Workspace, Forced Selling, Managed partnerships, Office market, UK Listing | Login |
| Jul 1, 2023 | Fund Letters | 1 Main Capital | KKR | KKR & Co | Financials | Asset Management & Custody Banks | Bull | New York Stock Exchange | alternative assets, asset management, AUM growth, cyclical earnings, Deferred income, Dry powder, private equity | Login |
| Jul 1, 2023 | Fund Letters | 1 Main Capital | CLMB | Limbach | Industrials | Construction & Engineering | Bull | NASDAQ | business transformation, HVAC contractor, M&A Consolidation, margin expansion, Mission-critical Infrastructure, net cash, Owner-direct model | Login |
| Apr 1, 2023 | Fund Letters | 1 Main Capital | DNTL.TO | dentalcorp Holdings | Health Care | Health Care Services | Bull | Toronto Stock Exchange | Canada, Cash-paying, defensive, Dental Services, DSO, healthcare, private equity, Rollup, strategic review | Login |
| Apr 1, 2023 | Fund Letters | 1 Main Capital | CLMB | Limbach Holdings | Industrials | Construction & Engineering | Bull | NASDAQ | business transformation, HVAC, Leadership Change, margin expansion, Mission-critical Infrastructure, net cash, Specialty Contractor, Value | Login |
| TICKER | COMMENTARY |
|---|---|
| IWG.L | IWG declined by approximately 25% in the quarter, costing the Fund more than 4%. Investors were spooked by a Citrini Research report "The 2028 Global Intelligence Crisis," which triggered a cascading selloff of many service companies perceived to be at risk from AI disruption. Operation Epic Fury and the resulting rise in oil prices, as well as IWG's Q4'25 earnings call which tempered 2026 FCF expectations, contributed further to the pullback. While the market reacted with its customary "shoot first ask questions later" mentality, I continue to believe that our investment in IWG will yield strong results in the years ahead. With respect to management's FCF commentary, some 2026 FCF was instead pulled into 2025, which came ahead of expectations. More importantly, IWG's medium-term business outlook remains compelling. The company expects at least 4% top-line growth this year, with significant operating leverage driving low-teens EBITDA growth. It also continues to target $1 billion of EBITDA over the medium term, which I believe is conservative. If achieved, the stock is currently trading at less than 3x 2030 free cash flow, after accounting for the ongoing share count reduction driven by an aggressive buyback program. As for AI, I believe that IWG is a stealthy winner. On the demand side, AI should drive startup formation and push enterprises to accelerate their adoption of short-term leases. On the supply side, rising office vacancies created by shrinking demand for long-term leases should generate a growing pipeline of landlords open to partnering with IWG under its asset-light managed partnership model. |
| KKR | During the quarter, the Fund reinitiated a core position in KKR after it declined more than 30%, caught up in a private credit scare that was exacerbated by the previously mentioned Citrini report. As a reminder, the Fund profitably owned KKR from 2019 to 2024, with the view that alternative asset managers ("alts") would take share from traditional asset managers, and that KKR was one of the top-tier firms ("mega-alts") positioned to take share within the alts. Since we initially invested, KKR's AUM has more than tripled from $200 billion to $700 billion. In 2026, the firm should generate over $5 billion of annual management fees at 70% operating margins, split roughly evenly across private equity (37%), real assets (33%), and credit (30%). PE, the most mature of the three, continues to grow AUM and fees at a double-digit pace. Real assets AUM has grown 8x to $200 billion since 2019, the Asia platform has grown 4x to $80 billion, and its K-Series retail platform more than doubled AUM to $34 billion in 2025 alone. Despite this growth, the runway ahead remains long. Management anticipates exceeding $1 trillion in AUM by 2030 — a target I believe will prove conservative. The firm's credit business accounts for just 30% of total fees and a smaller percentage of profits. Within that 30%, roughly half is in leveraged credit — liquid bonds and loans with externally validated marks — and roughly a third is in asset-based finance backed by hard assets. Direct lending, where the bubble fears are most concentrated, represents less than 20% of the credit book and just 5% of total AUM. Meanwhile, software companies account for only 7% of AUM, a smaller share than many competitors and even the broad public equity and credit indices. KKR's team has been aware of AI risks and incorporating them into underwriting for years. Even if there are losses, I expect KKR to shine on a relative basis — and I believe the coming years will see a shakeout among mid-sized alt managers, with mega-alts like KKR taking further share as allocators gravitate toward blue-chip names with the longest track records and the least career risk. It is also worth noting that KKR just closed its flagship Americas NAX4 fund at $23 billion, meaningfully reducing near-term fundraising risk. And the firm has already notched several high-profile exits this year, including the $5 billion sale of CoolIT to Ecolab — a 15x return in three years. Near-term market volatility may weigh on additional exits and performance income, but KKR remains an exceptionally high-quality business poised to grow earnings at a double-digit rate for the foreseeable future. Insiders seem to agree, and despite already owning nearly a third of the company, they spent $50 million on open market purchases as the stock pulled back. At a low double-digit multiple of 2026 owner's earnings, the risk/reward looks compelling. |
| 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 | |||
