| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 14.7% | 2.4% | 29.6% |
| 2025 |
|---|
| 29.6% |
Cedar Creek Partners delivered strong performance in 2025, returning 29.6% net of fees versus 17.8% for the S&P 500, driven by undervalued microcap and expert market securities. The fund maintains three core categories: expert market stocks (36% exposure), control positions led by Solitron Devices, and generally undervalued securities including a 20% allocation to community banks. Key developments included adding a major position in Exco Resources, a natural gas producer positioned for significant production growth with favorable pricing dynamics. The manager reduced cash from 17% to 7% while deploying capital into attractive opportunities. Solitron Devices, where the manager serves as CEO, saw record defense bookings exceeding $27 million backlog. Community banks remain attractively priced below six times earnings with acquisition potential. Portfolio trades at 7.1 times forward earnings with strong return on equity of 13%. The manager continues to find more attractive ideas than available capital, maintaining selective deployment focused on deep value opportunities with clear catalysts.
Cedar Creek Partners focuses on undervalued microcap and over-the-counter securities, particularly expert market stocks, community banks, and control positions, seeking to generate superior risk-adjusted returns through concentrated holdings of securities trading at attractive valuations with clear catalysts for value realization.
Manager expects continued deployment of capital with more attractive ideas than available cash, maintaining roughly 5% cash for redemptions and opportunities. Community banks expected to screen better as ECIP banks repurchase preferred stock, while Solitron positioned for improved performance with strong defense backlog.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 21 2026 | 2025 Q4 | ENDI, MCBS, SLBK, SODI, SPY | Community Banks, defense, Expert Market, Microcap, Natural Gas, OTC, value |
MCBS PHIG FLFG EXCE SODI ENDI SLBK |
Manager added major position in Exco Resources, an independent oil and gas company focused on onshore US shale development with 90% natural gas production. Production increased significantly from 22 Bcfe in March to 36 Bcfe in September 2025, with capex budget increasing from $185 million in 2025 to $430 million in 2026. At current two-year strip pricing of $3.75 per mcf, Exco could generate substantial cash flows. Fund allocated 20% to community banks trading at attractive valuations below six times earnings. Manager believes these modestly growing banks should trade at higher valuations and would be attractive acquisition candidates. ECIP banks are expected to screen better once they can repurchase outstanding preferred stock at deep discounts. Solitron Devices, where the manager serves as CEO, saw material uptick in defense orders beginning November 2024. Large orders included HIMARS components from L3Harris and AMRAAM components from RTX, with November 2025 bookings reaching highest ever at $13.9 million. Backlog exceeded $27 million, positioning for improved revenue and earnings. |
| Oct 21 2025 | 2025 Q3 | CZBS, ENDI, MCBS, PCHM, PHIG, PROM, SLBK, SODI | banks, defense, Micro Caps, Small business, value |
SODI ENDI PHIG SODI ENDI PHIG |
Cedar Creek gained 9.9% with strong returns from microcap holdings and expert-market stocks. The manager highlights deep value opportunities in community banks trading at low multiples and in defense supplier Solitron Devices amid increased military demand. The fund remains concentrated in undervalued, cash-generative niche firms. |
| Jul 23 2025 | 2025 Q2 | ENDI, IQV, MCBS, PCHM, PHIG, PROM, SLRC, SODI | Balance Sheets, Intrinsic Value, Mean reversion, Patience, value |
PROM ENDI |
The letter emphasizes disciplined value investing focused on businesses trading below intrinsic value due to temporary dislocations or neglect. The manager highlights patience, balance sheet strength, and downside protection as critical in a market dominated by momentum and macro noise. Cedar Creek argues that normalized earnings power and mean reversion provide attractive long-term return potential. |
| Apr 15 2025 | 2025 Q1 | CZBS, ENDI, EVRC, FIEB, IQV, MCBS, PCHM, PDRX, PROM, SLBK, SLRC, SODI, WCRS | - | - | |
| Feb 10 2025 | 2024 Q4 | CZBS, ENDI, EVRC, PCHM, PDER, PROM, ROYTL, SODI, WCRS | - | - | |
| Oct 23 2024 | 2024 Q3 | CZBS, ENDI, PCHM, PROM, ROYTL, SODI | - | - | |
| Jul 30 2024 | 2024 Q2 | CZBS, ENDI, FIEB, LNF CN, MFBP, PCHM, PROM, ROYTL, SODI | - | - | |
| May 20 2024 | 2024 Q1 | CZBS, ENDI, PCHM, PROM, ROYTL, SODI | - | - | |
| Jan 23 2024 | 2023 Q4 | CZBS, IQV, PCHM, PDRX, PROM, ROYTL, SKAS, SODI, UBAB | - | - | |
| Dec 10 2023 | 2023 Q3 | - | - | - | |
| Jul 21 2023 | 2023 Q2 | CZBS, IQV, MFBP, PDRX, PROM, ROYTL, SLRC, SODI | - | - | |
| Apr 25 2023 | 2023 Q1 | BMTX, CZBS, MFBP, PDRX, ROYTL, SODI | - | - | |
| Jan 20 2023 | 2022 Q4 | CZBS, MFBP, MGAG, PDRX, ROYTL, SODI | - | - | |
| Oct 20 2022 | 2022 Q3 | BFCC, BMTX, CZBS, FSWA, HRBR, MFBP, PDRX, RBCN, ROYTL | - | - | |
| Jul 28 2022 | 2022 Q2 | BMTX, HRBR, NNUP, ROYTL, WCRS | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
Community BanksFund allocated 20% to community banks trading at attractive valuations below six times earnings. Manager believes these modestly growing banks should trade at higher valuations and would be attractive acquisition candidates. ECIP banks are expected to screen better once they can repurchase outstanding preferred stock at deep discounts. |
Valuations Acquisitions ECIP Earnings Book Value |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines | |
Natural GasNorth American gas showed strength on cold weather despite bearish sentiment. Production growth concentrated in Permian Basin while other shales declined. Supply growth expected to plateau as Permian oil production slows, setting stage for higher prices as LNG demand expands. |
Shale Permian LNG Weather | |
| 2025 Q3 |
BanksDBS Bank was added as a new core holding, recognized for converting scale and technology into structural competitive advantages. The bank achieved 18% ROE through growing fee-based businesses like wealth management, reduced cyclicality, and strong capital allocation with progressive dividends and share repurchases. |
Wealth Management Digital Banking Singapore Fee Income Capital Allocation |
DefenseThe team initiated a position in Curtiss-Wright, believing the company is entering a period where multiple near-term growth drivers are converging, including rising defense budgets, commercial aerospace production ramps, nuclear power plant life extensions and new builds, and submarine production. |
Defense Budgets Aerospace Nuclear Submarines | |
MicroCaps |
||
| 2025 Q2 |
ValueThe manager continues to find attractive value opportunities despite expensive markets, purchasing undervalued companies like Centene, GlaxoSmithKline, Carrefour and PayPal trading at low multiples with strong fundamentals. |
Undervalued Low Multiples Contrarian Opportunistic |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 23, 2025 | Fund Letters | Tim Eriksen | ENDI | ENDI Corp. | Financials | Asset Management & Custody Banks | Bull | - | asset management, AUM growth, cash flow, Margins, valuation | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | MCBS | MetroCity Bankshares, Inc. | Financials | Banks | Neutral | NASDAQ | Deposits, loan growth, M&A, Regulation, valuation | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | PHIG | PHI Group, Inc. | Industrials | Airlines | Bull | Dubai Financial Market | Margins, Medevac, Net-Deleveraging, Offshore, Utilization | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | FLFG | Federal Life Group, Inc. | Financials | Life & Health Insurance | Bull | Dubai Financial Market | Insurance, Minority, profitability, Reinsurance, Takeout | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | EXCE | EXCO Resources, Inc. | Energy | Oil & Gas Exploration & Production | Bull | Dubai Financial Market | CapEx, cashflow, Hedging, Naturalgas, Reserves | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | SODI | Solitron Devices, Inc. | Information Technology | Electronic Components | Bull | Dubai Financial Market | backlog, Bookings, Defense, Programs, semiconductors | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | ENDI | ENDI Corp. | Financials | Asset Management & Custody Banks | Bull | Dubai Financial Market | Accounting, AUM, EBITDA, Fixedincome, Margins | Login |
| Jan 21, 2026 | Fund Letters | Tim Eriksen | SLBK | Skyline Bankshares, Inc. | Financials | Banks | Bull | Dubai Financial Market | Bookvalue, buybacks, Credit, Deposits, M&A | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | SODI | Solitron Devices Inc. | Information Technology | Aerospace & Defense | Bull | - | Amraam, backlog, Contracts, Defense, Himars, margin expansion, semiconductors | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | ENDI | ENDI Corp. | Financials | Asset Management & Custody Banks | Bull | - | asset management, AUM, fixed income, Liquidity, Margins, valuation | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | PHIG | PHI Group Inc. | Financials | Aerospace & Defense Services | Bull | Dubai Financial Market | Aviation, deleveraging, Margins, Oil & Gas, restructuring, turnaround | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | SODI | Solitron Devices Inc. | Information Technology | Aerospace & Defense | Bull | - | Amraam, backlog, Contracts, Defense, Himars, margin expansion, semiconductors | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | ENDI | ENDI Corp. | Financials | Asset Management & Custody Banks | Bull | - | asset management, AUM, fixed income, Liquidity, Margins, valuation | Login |
| Oct 21, 2025 | Fund Letters | Tim Eriksen | PHIG | PHI Group Inc. | Financials | Aerospace & Defense Services | Bull | Dubai Financial Market | Aviation, deleveraging, Margins, Oil & Gas, restructuring, turnaround | Login |
| Jul 23, 2025 | Fund Letters | Tim Eriksen | PROM | Propel Media Inc. | Energy | Interactive Media & Services | Bull | - | advertising, arbitrage, digital media, microcap, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| ENDI | ENDI Corp (otc: ENDI) – we profiled ENDI in our 2024 first quarter letter when the share price was around $6.50 per share. The share price declined during the fourth quarter from $17.55 per share to $16.75 per share. ENDI owns CrossingBridge Advisors which manages fixed income mutual funds and a few managed accounts. |
| MCBS | First IC had agreed to be acquired by MetroCity Bankshares (nasdaq: MCBS) for cash and stock. The deal closed in early December; however, we are still waiting on both the cash and stock proceeds. |
| SLBK | This included First IC mentioned above, which was just over 6% of the fund, as well as a few ECIP banks we re-entered into in Q4 as prices fell, Skyline Bankshares (otc: SLBK) which we profiled in our Q1 2025 letter, and the basket of smaller banks we have been building. |
| SODI | Solitron Devices (otc: SODI) - the bid price for shares increased from $16.40 per share to $18.69 per share during the fourth quarter. As a reminder, the fund manager is CEO and a board member of Solitron. The fund owns 11.2% of Solitron's outstanding shares and the fund manager and his family own 3.0%. |
| SPY | Over the exact same period, the S&P 500 generated an annualized return of around 10.2%. A dollar invested passively in an S&P 500 ETF became roughly eleven dollars. The SPDR S&P 500 ETF Trust, is the most widely owned and actively traded ETF in the world. Its market capitalization today is roughly USD 700 billion—only about 1% of the total market capitalization of the S&P 500 constituents. Yet SPY's typical daily trading volume is USD 30–40 billion, while the combined daily trading volume of the underlying S&P 500 companies is approximately USD 500–700 billion. |
| 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 | |||
