| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Cable Car Capital operates as a global opportunistic fund with eight custodians facilitating niche strategies across different regions. The fund has evolved into a more trading-oriented approach due to extreme volatility and price-value dislocations in equity markets characterized by broader retail participation. Key activities include active litigation with ten resolved matters involving contract enforcement and shareholder rights, SPAC-related litigation and structured financings, and biotech investments during the current downcycle. The manager served on the board of Arca Biopharma through its merger with Oruka Therapeutics, establishing a model for similar transactions. Currently, the fund is aggressively positioned in crypto Treasury strategies, capitalizing on public companies trading at premiums to net asset value through both PIPE commitments at discounts and synthetic put positions in MSTR via convertible bonds. The fund expects eventual compression of these premiums as new supply overwhelms demand. Cable Car continues expanding its structured finance capabilities and remains involved in multiple ongoing biotech strategic alternatives processes.
Cable Car Capital employs a global, opportunistic strategy focused on arbitrage situations, activist positions in small-cap biotechnology during downturns, SPAC-related litigation and structured financings, and capitalizing on crypto Treasury strategy dislocations through both long and short positions.
The manager expects eventual compression of crypto Treasury premiums to NAV as new supply overwhelms demand, though timing is unpredictable. They remain involved in several ongoing biotech strategic alternatives processes and continue active litigation strategies.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jun 16 2025 | 2025 Q1 | MSTR, ORKA | activism, arbitrage, Biotechnology, crypto, global, Litigation, SmallCap, SPACs | - | Cable Car Capital runs a global opportunistic strategy focused on arbitrage opportunities, biotech activism during downturns, SPAC litigation, and crypto Treasury dislocations. The fund is positioned both long and short crypto Treasury strategies, expecting premium compression as supply overwhelms demand. Active litigation and structured finance capabilities drive returns across multiple niche strategies. |
| Jun 16 2025 | 2025 Q1 | MSTR, ORKA | activism, arbitrage, Biotechnology, crypto, global, Litigation, SmallCap, SPACs |
ORKA MSTR |
Cable Car Capital runs a global opportunistic strategy focused on arbitrage opportunities, biotech activism during downturns, SPAC litigation, and crypto Treasury dislocations. The fund is positioned both long and short crypto Treasury strategies, expecting premium compression as supply overwhelms demand. Active litigation and structured finance capabilities drive returns across multiple niche strategies. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q1 |
SPACsThe fund has been actively involved in SPAC litigation and structured financings. They served as lead plaintiff in multiple litigations against SPAC sponsors who attempted to keep termination fees, resulting in recoveries for public equity investors. They also participated in several de-SPAC transactions and structured financings of small companies. |
Litigation Termination Fees De-SPAC Structured Financing |
BiotechnologyThe manager describes biotech as having one of the most easily observed business cycles, with opportunities arising during downturns when companies trade at negative enterprise value. They have emulated activist and mean reversion strategies during biotech downturns and served on the board of Arca Biopharma through its merger with Oruka Therapeutics. |
Business Cycles Negative Enterprise Value Activist Mean Reversion Clinical Development | |
CryptoThe fund is focused on crypto Treasury strategies, capitalizing on public companies becoming holding vehicles for digital assets and trading at multiples of net asset value. They are positioned on both sides with PIPE commitments at discounts and synthetic put positions in MSTR through convertible bonds, expecting eventual compression of premiums to NAV. |
Treasury Strategies Premium to NAV PIPE Convertible Bonds Digital Assets | |
| 2025 Q1 |
SPACsThe fund has been actively involved in SPAC litigation and structured financings. They served as lead plaintiff in multiple litigations against SPAC sponsors who attempted to keep termination fees, resulting in recoveries for public equity investors. They also participated in several de-SPAC transactions and structured financings of small companies. |
Litigation Termination Fees De-SPAC Structured Financing |
BiotechnologyThe manager describes biotech as having one of the most easily observed business cycles, with opportunities arising during downturns when companies trade at negative enterprise value. They have emulated activist and mean reversion strategies during biotech downturns and served on the board of Arca Biopharma through its merger with Oruka Therapeutics. |
Business Cycles Negative Enterprise Value Activist Mean Reversion Clinical Development | |
CryptoThe fund is focused on crypto Treasury strategies, capitalizing on public companies becoming holding vehicles for digital assets and trading at multiples of net asset value. They are positioned on both sides with PIPE commitments at discounts and synthetic put positions in MSTR through convertible bonds, expecting eventual compression of premiums to NAV. |
Treasury Strategies Premium to NAV PIPE Convertible Bonds Digital Assets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jun 16, 2025 | Fund Letters | Cable Car Capital | MSTR | MicroStrategy Incorporated | Information Technology | Application Software | Bear | NASDAQ | Bitcoin treasury, closed-end fund, Convertible Bonds, Digital Assets, Pairs Trade, PIPE, premium to NAV, Regulatory Arbitrage, Synthetic Short | Login |
| Jun 16, 2025 | Fund Letters | Cable Car Capital | ORKA | Oruka Therapeutics | Health Care | Biotechnology | Bull | NASDAQ | activist, Biotech Downcycle, biotechnology, board representation, capital return, M&A, Mean Reversion, Reverse merger | Login |
| TICKER | COMMENTARY |
|---|---|
| ORKA | From 2022-2024 the fund was the largest shareholder, and I served on the board of Arca Biopharma, culminating in its merger with Oruka Therapeutics (ORKA). I believe the ORKA transaction is a good model for similarly situated issuers: the transaction valuation should ideally be validated by concomitant financing, and the company should commit to returning most or all of its capital in connection with the transaction, ensuring an outcome superior to liquidation for shareholders irrespective of the subsequent performance of the target. |
| MSTR | Hoping to emulate the success of Strategy (MSTR), public companies are rushing to become holding companies for digital assets and hoping to trade at multiples of their net asset value. MSTR advances a range of fanciful explanations in its investor communications, though they no doubt understand perfectly well the root cause, which is simple. MSTR will continue inventing new kinds of preferred stock with silly names until enough shares have been printed to overwhelm demand. On the short side, we have structured a sizeable synthetic put position in MSTR through its convertible bonds, which will benefit from an eventual compression of the premium to NAV. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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| No industry data available | |||
