| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | 41.4% |
New West Partners delivered 41.38% YTD returns versus 5.68% for the S&P 500, driven by two key strategies. First, the fund exploited systematic underpricing of risk in options markets through a volatility hedge on semiconductors, where implied volatility was below realized volatility. This directionally agnostic insurance strategy generated ~17% gains during April's tariff-induced market decline. Second, the fund capitalized on Google's antitrust trial outcome through concentrated positions in digital advertising beneficiaries Magnite and PubMatic. Using a combination of long-dated calls and short-term puts, the MGNI position returned 7x after the stock doubled from under $12 to $24. The manager acknowledges being better lucky than smart on timing but credits thorough due diligence and opportunistic positioning during market weakness. Key risks include continued systematic risk mispricing and policy-driven volatility. The fund is transitioning to SEC registration to offer separate Quality and Special Situations strategies while maintaining operational efficiency.
New West Partners exploits systematic market inefficiencies through volatility strategies and special situations investing, particularly targeting underpriced risk in options markets and antitrust-driven opportunities in digital advertising beneficiaries.
Manager is transitioning to SEC registered entity structure to provide more diverse investment options and simpler onboarding process. Will offer Quality and Special Situations strategies individually or combined. Compliance will provide updates as registration process progresses.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 14 2025 | 2025 Q2 | GOOGL, MGNI, PUBM | Advertising, Antitrust, Options, semiconductors, special situations, tariffs, volatility |
MGNI PUBM MGNI PUBM |
New West Partners generated 41.38% YTD returns through volatility arbitrage and special situations investing. A semiconductor options strategy provided downside protection during tariff-induced selloffs, while concentrated bets on Google antitrust beneficiaries Magnite and PubMatic delivered outsized gains. The fund is transitioning to SEC registration to offer more targeted investment strategies. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q2 |
VolatilityManager exploited systematic underpricing of risk in options markets through delta hedging strategy on semiconductor industry. The implied volatility was less than realized volatility, allowing insurance to be purchased at below fair value and potentially for free through rebalancing gains. |
Options Delta hedging Risk pricing Insurance |
AdvertisingGoogle antitrust trial regarding monopolistic behavior in digital advertising created opportunity for beneficiary companies like Magnite and PubMatic. These companies were forced to operate in Google's shadow but stand to benefit from increased market share if Google is required to cease monopolistic practices. |
Antitrust Digital advertising Market share Monopoly | |
SemiconductorsSemiconductor industry was the target for volatility hedge strategy due to underpriced options. The sector experienced significant volatility during tariff-induced market drawdown, validating the directionally agnostic insurance approach. |
Options Volatility Tech sector Tariffs |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 14, 2025 | Fund Letters | Kyle Tushaus | MGNI | Magnite, Inc. | Communication Services | Communication Services | Bull | NASDAQ | adtech, advertising, antitrust, Digital, Margins, Programmatic, Publishers, Streaming | Login |
| Jul 14, 2025 | Fund Letters | Kyle Tushaus | PUBM | PubMatic, Inc. | Information Technology | Communication Services | Bull | NASDAQ | adtech, advertising, growth, marketplace, Publishers, Scalability, Streaming, valuation | Login |
| Jul 14, 2025 | Fund Letters | New West Capital | MGNI | Magnite Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | Ad Tech, antitrust, digital advertising, EBITDA Conversion, Google, market share, Monopoly, Multibagger, Options Strategy, Special situations | Login |
| Jul 14, 2025 | Fund Letters | New West Capital | PUBM | PubMatic Inc | Communication Services | Interactive Media & Services | Bull | NASDAQ | Ad Tech, antitrust, digital advertising, EBITDA Conversion, Google, market share, Monopoly, Multibagger, Options Strategy, Special situations | Login |
| TICKER | COMMENTARY |
|---|---|
| MGNI | This was done specifically on MGNI, when the stock was under $12 per share. At close of Q2 2025, the stock was trading at $24 per share, the puts had expired worthless (more than paying back our cost for the calls), and the remaining call position had increased 7x from our purchase price. You have a few companies, namely Magnite (MGNI) and PubMatic (PUBM), that have been forced to operate and grow in the shadow of Google's ad tech dominance. If Google is required to cease its monopolistic behavior and cede market share to them, given their already established (albeit small) market positions these companies will be able to convert that additional revenue at a higher rate than the revenue it took them to get them to where they are now. |
| PUBM | You have a few companies, namely Magnite (MGNI) and PubMatic (PUBM), that have been forced to operate and grow in the shadow of Google's ad tech dominance. If Google is required to cease its monopolistic behavior and cede market share to them, given their already established (albeit small) market positions these companies will be able to convert that additional revenue at a higher rate than the revenue it took them to get them to where they are now. |
| GOOGL | Google had been put on trial for being accused of operating as a de facto monopoly in the digital advertising industry for quite some time. Which was found to be true by a jury trial in April of this year. If Google is required to cease its monopolistic behavior and cede market share to them, given their already established (albeit small) market positions these companies will be able to convert that additional revenue at a higher rate. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
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