Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 35% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 35.0% | 17.0% | 17.0% | 6.0% | 11.0% | 46.0% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 0% | 35% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 35.0% | 17.0% | 17.0% | 6.0% | 11.0% | 46.0% |
Seven Corners Capital delivered strong performance in 2025, returning 35% versus 18% for the S&P 500, representing 17% outperformance. Since 2020, the portfolio has appreciated 218% versus 130% for the index, demonstrating consistent alpha generation. The concentrated portfolio maintains six core holdings representing 88% of AUM, reflecting a high-conviction value investing approach. Key positions include Pershing Square Holdings trading at a 24% discount to NAV, Turning Point Brands benefiting from explosive growth in smokeless tobacco products, and Genworth Financial offering discounted exposure to private mortgage insurance. The manager emphasizes patient capital deployment in companies with clear value catalysts, including potential NAV discount closure, litigation recoveries, and commodity price normalization. Recent corporate actions at Rocket Companies through acquisitions of Redfin and Mr Cooper demonstrate the portfolio's focus on transformative business combinations. While acknowledging risks from competition and corporate governance issues, the manager maintains conviction in the portfolio's positioning for continued outperformance through disciplined value investing principles.
Seven Corners Capital employs a concentrated value investing strategy focused on companies trading at significant discounts to intrinsic value, with particular emphasis on NAV discounts, sum-of-the-parts valuations, and secular growth opportunities in niche markets.
The manager appears optimistic about the portfolio's positioning, highlighting multiple value catalysts across holdings including NAV discount closure, litigation recovery, and commodity price recovery potential.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 18 2026 | 2025 Q4 | ACT, CART, GNW, HHH, PSHZF, RKT, SD, TPB | concentrated, discount, energy, Mortgage, NAV, Tobacco, value |
PSHZF TPB GNW CART SD RKT |
Seven Corners Capital's concentrated value strategy delivered 35% returns in 2025, outperforming the S&P 500 by 17%. The six-holding portfolio targets companies trading at significant discounts to intrinsic value, with key positions in Pershing Square Holdings, Turning Point Brands, and Genworth Financial offering clear catalysts for value realization through NAV convergence and business transformation. |
| Jul 18 2025 | 2025 Q2 | ACT, CART, COOP, GNW, HHH, PSHZF, RFIN, RKT, SD, TPB | Compounding, concentrated, discount, energy, financials, technology, value |
PSHZF TPB GNW CART SD RKT |
Seven Corners Capital outperformed the S&P 500 by 5% in H1 2025 through concentrated value investing in discount situations and compounding businesses. Key holdings include Pershing Square at 34% NAV discount, explosive growth at Turning Point's smokeless tobacco business, and Rocket Companies' transformative mortgage acquisitions creating integrated platform. |
| Dec 31 2024 | 2024 Q4 | ACT, CART, GNW, HHH, PSHZF, SD, TPB | activism, discount, energy, NAV, value |
PSHZF TPB GNW SD CART |
Seven Corners Capital runs a concentrated value strategy targeting discount situations and sum-of-parts plays. Despite 2024 underperformance, the fund maintains strong pandemic-period outperformance through positions in NAV-discount vehicles like Pershing Square, potential activist targets like Turning Point Brands, and energy assets benefiting from supply constraints at Sandridge Energy. |
| Nov 1 2024 | 2024 Q3 | ACT, GNW, PSHZF, RKT, SD, TPB | Concentration, Discounts, energy, Mortgage, value |
PSHZF GNW TPB RKT SD |
Seven Corners Capital runs a concentrated value strategy targeting deep discounts with clear catalysts. The portfolio includes Pershing Square Holdings at 31% NAV discount, Genworth Financial below sum-of-parts value, and energy exposure through Sandridge. Despite Q3 underperformance, the fund has significantly outperformed since 2020 through patient, concentrated investing in mispriced securities. |
| Jun 30 2024 | 2024 Q2 | ACT, GNW, PSHZF, RKT, SD, TPB | activism, Buybacks, Discounts, energy, financials, value |
PSHZF GNW TPB SD RKT |
Seven Corners Capital's concentrated value portfolio underperformed in H1 2024 but maintains conviction in five core positions with specific catalysts. Key themes include NAV discount closure at Pershing Square Holdings, business separation at Genworth Financial, potential activist intervention at Turning Point Brands, energy price support at Sandridge Energy, and mortgage rate normalization at Rocket Companies. |
| Apr 15 2024 | 2024 Q1 | ACT, GNW, PSHZF, RKT, SD, TPB | activism, discount, energy, financials, Tobacco, value |
PSHZF GNW TPB SD RKT |
Seven Corners Capital runs a concentrated value strategy targeting discount situations and activist opportunities. The portfolio returned 9% in Q1 2024, with significant outperformance since 2020. Top holdings include Pershing Square Holdings trading at 26% NAV discount, Genworth's Enact Holdings sum-of-parts play, and energy exposure through Sandridge betting on sustained commodity prices. |
| Dec 1 2024 | 2023 Q4 | ACT, GNW, HHC, MACK, PSHZF, SD | activism, discount, energy, Pharmaceuticals, value |
PSHZF GNW MACK AAVE-USD |
Concentrated value fund targeting discount-to-sum-of-parts plays across four core positions. PSHZF offers 40% upside from NAV discount closure, GNW trades below its Enact Holdings stake value, MACK awaits FDA approval catalyst worth $17/share, and Sandridge Energy benefits from drilling decline supporting energy prices under Icahn's stewardship. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
TobaccoTurning Point Brands' FRE smokeless tobacco brand is growing at an extremely high rate, with Modern Oral Net Sales increasing 627.6% year-over-year in Q3 2025. The company benefits from the long-term decline in traditional cigarette use and has launched a joint venture with Tucker Carlson for the ALP smokeless tobacco product. |
Smokeless FRE Modern Oral Nicotine Alternative |
InsuranceGenworth Financial provides indirect ownership in private mortgage insurer Enact Holdings at a discount, plus exposure to Long Term Care and Life & Annuity businesses. Howard Hughes Corporation is acquiring Vantage Group Holdings, a P&C and specialty insurer, for $2.1 billion as part of becoming a diversified holding company. |
Mortgage Insurance P&C Specialty Reinsurance Holdings | |
E-commerceInstacart's business model creates a virtuous circle where increased consumer usage improves speed and quality of selection, leading to further adoption. The company continues to work with retailers on price parity, which drives faster growth and better user retention compared to marked-up retailers. |
Grocery Delivery Marketplace Price Parity Convenience Retention | |
OilSandridge Energy represents exposure to oil and gas assets amid secular decline in drilling and revival of inflation. The company has maximized free cash flow conversion through expense cuts and well optimization, with additional production acquired in the Western Anadarko basin. |
Production Free Cash Flow Anadarko Drilling Assets | |
MortgageRocket Companies completed transformative acquisitions of Redfin and Mr Cooper, creating an integrated platform from home search to mortgage origination and servicing. The combined company will service more than $2.1 trillion in loan volume with expected annual synergies of approximately $500 million. |
Origination Servicing Integration Synergies Platform | |
| 2025 Q2 |
TobaccoTurning Point Brands benefits from steady, high-quality compounding business model via Zig-Zag and Stoker's brands, which should benefit from tailwind in long-term decline of traditional cigarettes. Stoker's FRE brand of smokeless tobacco is growing at extremely high rate with Modern Oral sales up nearly 10-times versus prior year. |
Smokeless FRE Modern Oral Traditional Cigarettes Compounding |
MortgageRocket Companies announced transformative acquisitions of Redfin and Mr Cooper to create seamless experience from home search to mortgage servicing. Combined company will service more than $2.1 trillion in loan volume with expected annual run-rate synergies of approximately $500 million. |
Servicing Origination Synergies Integration Recapture | |
E-commerceInstacart continues demonstrating success of underlying business model with virtuous circle where more consumer use leads to better speed and quality of selection as designated shoppers' skills increase. Company has incrementally built upon foundation created during pandemic period. |
Grocery Delivery Virtuous Circle Pandemic GTV | |
OilSandridge Energy positioned to benefit from secular decline in O&G drilling combined with revival of inflation supporting carbon-based energy prices going forward. Company has cut unnecessary expenses to bone and maximized free cash flow conversion while reactivating dormant wells. |
Drilling Inflation Free Cash Flow Recompletion ESG | |
| 2024 Q4 |
ValuePortfolio focuses on companies trading at discounts to intrinsic value, including NAV discounts and sum-of-the-parts situations. Multiple holdings trade below their fundamental worth based on asset values. |
Discount NAV Undervalued Sum-of-parts Intrinsic value |
EnergySecular decline in oil and gas drilling combined with revival of inflation will support carbon-based energy prices going forward. ESG policies actually benefit existing oil and gas asset owners by limiting new supply. |
Oil Gas Energy prices ESG Carbon | |
| 2024 Q3 |
ValueThe portfolio demonstrates classic value investing principles through concentrated positions in companies trading at significant discounts to intrinsic value. Examples include Genworth Financial trading at a discount to its Enact Holdings stake and Pershing Square Holdings trading at a 31% discount to NAV. The manager seeks to unlock value through corporate actions and discount closures. |
Discount NAV Intrinsic Value Sum-of-Parts Unlocking |
EnergySandridge Energy represents the largest energy holding, positioned for a secular decline in oil and gas drilling that should support carbon-based energy prices going forward. The company has cut unnecessary expenses and maximized free cash flow conversion while maintaining single-digit annual PDP decline rates over the next decade. |
Oil Gas Free Cash Flow Drilling Production | |
MortgageRocket Companies represents a play on future mortgage rate declines when inflation becomes subdued again. The position was established in December 2022 as rates were rising, positioning for an eventual reversal in the interest rate cycle. |
Rates Refinancing Housing Interest Cycle | |
| 2024 Q2 |
BuybacksMultiple portfolio companies are actively repurchasing shares. Pershing Square Holdings continues to repurchase shares under its repo program. Genworth Financial has been actively repurchasing its stock in recent quarters. |
Share Repurchases Capital Allocation Shareholder Returns |
DividendsTurning Point Brands could see a substantial increase in the dividend along with a consequent decrease in its practice of taking equity stakes in other companies. This represents a potential catalyst for improved shareholder returns. |
Dividend Increase Capital Allocation Shareholder Returns | |
EnergySandridge Energy represents the largest energy holding with a thesis that secular decline in oil and gas drilling, combined with revival of inflation generally, will support carbon-based energy prices going forward. The company has cut unnecessary expenses to the bone and maximized free cash flow conversion. |
Oil Natural Gas Energy Prices Free Cash Flow | |
MortgageRocket Companies represents a play on a future decline in mortgage rates if and when inflation becomes subdued again. The position was purchased in December 2022 as a bet on mortgage rate normalization. |
Mortgage Rates Interest Rates Housing Finance | |
| 2024 Q1 |
EnergyThe fund maintains a significant energy position in Sandridge Energy, betting on secular decline in O&G drilling combined with inflation revival supporting carbon-based energy prices. The thesis is that if you own O&G assets, then ESG is your friend. The company has cut unnecessary expenses to the bone and maximized free cash flow conversion. |
Oil Natural Gas Energy Transition Inflation |
TobaccoTurning Point Brands represents a steady compounding business model via its Zig-Zag and Stoker's brands, though waters have been muddied by struggles of its NewGen brands segment. The company could become target of activist investors focused on separating legacy cashflowing business from perpetually struggling New Gen vaping business. |
Tobacco Dividends Value | |
MortgageRocket Companies represents a play on a future decline in mortgage rates if and when inflation becomes subdued again. The position was purchased in December 2022 as the newest large position in the portfolio. |
Mortgage Rates Inflation | |
| 2023 Q4 |
ValuePortfolio consists of discount-to-sum-of-parts plays including PSHZF trading at 29% discount to NAV, GNW trading at discount to its 81.6% ACT stake value, and MACK as classic uncorrelated sum-of-parts opportunity. These positions are viewed as theoretically independent of overall market movements. |
Discount NAV Sum-of-parts Valuation Arbitrage |
EnergySandridge Energy represents largest energy holding with thesis that secular decline in O&G drilling combined with inflation revival will support carbon-based energy prices going forward. Company has cut expenses to maximize free cash flow conversion and instituted regular dividend plus special dividend. |
Oil Gas Drilling Inflation Dividends | |
PharmaceuticalsMACK position based on potential $225 million CVR payment from Ipsen if FDA approves Onivyde for pancreatic cancer treatment, with PDUFA date of February 13, 2024. Company has no debt and cash runway until 2027. |
FDA Oncology CVR Biotech Approval |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 18, 2026 | Fund Letters | Scott Klarquist | PSHZF | Pershing Square Holdings, Ltd. | Financials | Asset Management | Bull | Euronext Stock Exchange | activist, Alignment, buybacks, capital allocation, NAV discount | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | TPB | Turning Point Brands, Inc. | Consumer Staples | Tobacco | Bull | New York Stock Exchange | cashflow, Governance, growth, Smeless nicotine, tobacco | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | GNW | Genworth Financial, Inc. | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Activism, buybacks, Insurance, Optionality, Sum-of-parts | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | CART | Maplebear Inc. (Instacart) | Consumer Discretionary | Internet Retail | Bull | NASDAQ | ecommerce, grocery, network effects, Platforms, profitability | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | SD | SandRidge Energy, Inc. | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | capital discipline, energy, Free cashflow, inflation, Oil & Gas | Login |
| Jan 18, 2026 | Fund Letters | Scott Klarquist | RKT | Rocket Companies, Inc. | Financials | Mortgage Finance | Bull | New York Stock Exchange | Housing, Integration, Mortgage, scale, synergies | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | PSHZF | Pershing Square Holdings Ltd. | Financials | Closed-End Funds | Bull | Euronext Stock Exchange | Activism, Capitalallocation, Closedend, discount, rerating | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | TPB | Turning Point Brands, Inc. | Consumer Staples | Tobacco | Bull | New York Stock Exchange | cashflow, Consumerbrands, Nicotine, Secularshift, tobacco | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | GNW | Genworth Financial, Inc. | Financials | Life & Health Insurance | Bull | New York Stock Exchange | Activism, buybacks, Insurance, restructuring, Sumoftheparts | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | CART | Maplebear Inc. (Instacart) | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | advertising, convenience, ecommerce, marketplace, Networkeffects | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | SD | SandRidge Energy, Inc. | Energy | Oil & Gas Exploration & Production | Bull | New York Stock Exchange | energy, Freecashflow, inflation, Oilgas, Supplydiscipline | Login |
| Jul 18, 2025 | Fund Letters | Scott Klarquist | RKT | Rocket Companies, Inc. | Financials | Mortgage Finance | Bull | New York Stock Exchange | Fintech, Housing, Mortgages, platform, synergies | Login |
| Jan 13, 2025 | Fund Letters | Seven Corners Capital | CART | Instacart (Maplebear Inc.) | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | advertising revenue, Consumer Discretionary, e-commerce, grocery delivery, marketplace, network effects, Post-Pandemic Winner, technology | Login |
| Jan 13, 2025 | Fund Letters | Seven Corners Capital | PSHZF | Pershing Square Holdings | Financials | Asset Management & Custody Banks | Bull | Euronext Amsterdam | activist, asset management, Berkshire Model, closed-end fund, Hedge Fund, holding company, NAV discount, Value | Login |
| Jan 13, 2025 | Fund Letters | Seven Corners Capital | GNW | Genworth Financial | Financials | Life & Health Insurance | Bull | NYSE | Holding Company Discount, Insurance, Mortgage Insurance, Regulatory, Share Buybacks, spin-off, Sum-of-parts, Value | Login |
| Jan 13, 2025 | Fund Letters | Seven Corners Capital | SD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | Carl Icahn, contrarian, E&P, energy, ESG Beneficiary, Free Cash Flow, Oil & Gas, turnaround, Value | Login |
| Jan 13, 2025 | Fund Letters | Seven Corners Capital | TPB | Turning Point Brands | Consumer Staples | Tobacco | Bull | NYSE | Activist Target, cash generation, consumer staples, dividend, Legacy Brands, Rolling Papers, Smokeless Tobacco, tobacco | Login |
| - | Fund Letters | Seven Corners Capital | TPB | Turning Point Brands | Consumer Staples | Tobacco | Neutral | NYSE | Activist Target, business separation, consumer staples, Legacy Brands, tobacco, Value trap | Login |
| - | Fund Letters | Seven Corners Capital | PSHZF | Pershing Square Holdings | Financials | Asset Management & Custody Banks | Bull | Euronext Amsterdam | arbitrage, asset management, closed-end fund, concentrated portfolio, Fee Reduction, Hedge Fund, NAV discount | Login |
| - | Fund Letters | Seven Corners Capital | PSHZF | Pershing Square Holdings | Financials | Asset Management & Custody Banks | Bull | Euronext Amsterdam | asset management, Berkshire Model, Bill Ackman, closed-end fund, Corporate Restructuring, Hedge Fund, NAV discount, value unlock | Login |
| - | Fund Letters | Seven Corners Capital | GNW | Genworth Financial | Financials | Multi-line Insurance | Bull | NYSE | Corporate Restructuring, Insurance, Mortgage Insurance, Regulatory Approval, Share Buybacks, spin-off, Sum-of-parts, value unlock | Login |
| - | Fund Letters | Seven Corners Capital | TPB | Turning Point Brands | Consumer Staples | Tobacco | Neutral | NYSE | Activist Target, business separation, capital allocation, Dividend Increase, Legacy Position, tobacco, Underperformance | Login |
| - | Fund Letters | Seven Corners Capital | PSHZF | Pershing Square Holdings | Financials | Asset Management & Custody Banks | Bull | Euronext Amsterdam | asset management, closed-end fund, Fee Reduction, Hedge Fund, NAV discount, Structural changes, Value | Login |
| - | Fund Letters | Seven Corners Capital | MACK | Merrimack Pharmaceuticals | Health Care | Biotechnology | Bull | NASDAQ | Binary catalyst, biotechnology, CVR payment, FDA approval, insider buying, NOLs, Pancreatic cancer, PDUFA date | Login |
| - | Fund Letters | Seven Corners Capital | AAVE-USD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | Asset Optimization, Carl Icahn, dividend, E&P, ESG Beneficiary, Free Cash Flow, oil and gas, turnaround | Login |
| - | Fund Letters | Seven Corners Capital | GNW | Genworth Financial | Financials | Multi-line Insurance | Bull | NYSE | conglomerate discount, Insurance, Mortgage Insurance, restructuring, Sum-of-parts, Value | Login |
| - | Fund Letters | Seven Corners Capital | RKT | Rocket Companies | Financials | Thrifts & Mortgage Finance | Bull | NYSE | Cyclical, financials, founder-led, Housing, Interest rates, mortgage finance | Login |
| - | Fund Letters | Seven Corners Capital | RKT | Rocket Companies | Financials | Thrifts & Mortgage Finance | Bull | NYSE | Cyclical Recovery, founder-led, Housing finance, interest rate sensitivity, mortgage finance, Rate normalization | Login |
| - | Fund Letters | Seven Corners Capital | GNW | Genworth Financial | Financials | Multi-line Insurance | Bull | NYSE | Long-term Care, Mortgage Insurance, Regulatory Approval, share repurchase, spin-off, Sum-of-parts, value unlock | Login |
| - | Fund Letters | Seven Corners Capital | PSHZF | Pershing Square Holdings | Financials | Asset Management & Custody Banks | Bull | Euronext Amsterdam | activist, asset management, closed-end fund, Hedge Fund, NAV discount, Value | Login |
| - | Fund Letters | Seven Corners Capital | TPB | Turning Point Brands | Consumer Staples | Tobacco | Bull | NYSE | Activist Target, Dividend Increase, Legacy Brands, Rolling Papers, Smokeless Tobacco, spin-off, tobacco | Login |
| - | Fund Letters | Seven Corners Capital | RKT | Rocket Companies | Financials | Thrifts & Mortgage Finance | Bull | NYSE | founder-led, housing market, Interest Rate Cycle, Mortgage Lending, Refinancing, technology platform | Login |
| - | Fund Letters | Seven Corners Capital | SD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | Asset Acquisition, Carl Icahn, Energy Value, ESG Beneficiary, Free Cash Flow, Oil & Gas, operational efficiency | Login |
| - | Fund Letters | Seven Corners Capital | GNW | Genworth Financial | Financials | Life & Health Insurance | Bull | NYSE | asset separation, discount to NAV, Insurance, restructuring, share repurchase, Sum-of-parts, value unlock | Login |
| - | Fund Letters | Seven Corners Capital | SD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | Carl Icahn, energy, ESG, Free Cash Flow, Oil & Gas, Value | Login |
| - | Fund Letters | Seven Corners Capital | SD | SandRidge Energy | Energy | Oil & Gas Exploration & Production | Bull | NYSE | Anadarko Basin, Carl Icahn, ESG Impact, Free Cash Flow, Oil & Gas, supply constraints, Well Recompletion | Login |
| TICKER | COMMENTARY |
|---|---|
| CART | Instacart's stock appreciated about 10% in 2025, underperforming the overall market, but remains up about 50% from SCC's cost basis. In Q3 2025, orders grew 14% year-over-year, GTV increased 10%, and both net income and Adjusted EBITDA expanded. Net income for Q3 2025 came in at $144MM, or $0.51/diluted share. On a forward (fiscal 2026) basis, the company trades at 20X expected earnings of ~$2.25/share, which seems reasonable given its growth prospects and the inherent strength of its business model. |
| GNW | GNW continues to represent a way to obtain (A) (at a discount) indirect ownership in its 80% owned subsidiary, Enact Holdings (ACT), a private mortgage insurer, and (B) a call option on its other businesses (Long Term Care and Life & Annuity). GNW currently owns 115 million shares of ACT; with 399 million shares of GNW outstanding, this means that each share of GNW represents ownership of 0.289 shares of ACT, worth $11.44 as of the end of 2025 (versus the $9 GNW share price). |
| HHH | 2025 marked a pivotal year for HHH as it began its transformation into a leading diversified holding company. Strong results across real estate subsidiary's high-quality portfolio of MPCs. 2025 MPC EBT guidance of $450 million reflects record-high land sale profitability. Completed transaction with Pershing Square in May 2025. |
| PSHZF | PSHZF, led by billionaire hedge fund manager Bill Ackman, finished 2025 up 37% (including dividends), outperforming a 21% increase in its NAV (thus, PSH's discount to NAV decreased to 24%). The long thesis continues to be two-fold: (1) a bet that Bill Ackman will outperform the overall market with his stock picking and uncanny ability to make huge sums via hedging; and (2) more importantly over the intermediate term, the closing of the sizable NAV discount. Simply closing the current discount would result in a ~32% appreciation in the stock, assuming NAV were to remain constant. |
| RKT | Rocket Companies, a fully integrated mortgage provider which we received shares of following the recent closing of its acquisition of Mr. Cooper, underperformed due to evolving market expectations surrounding the path of interest rates, which is key driver of its mortgage originations business. Rocket Companies, following its 2025 acquisition of Mr. Cooper, became a combined company with a market capitalization exceeding $50 billion. As a result, the position moved well beyond our small-cap mandate, and we exited the position. |
| SD | Sandridge is SCC's largest energy holding, whose stock has been relatively stagnant (along with the price of oil & natural gas) over the past 2 years. The long thesis here remains that the secular decline in O&G drilling, combined with the revival of inflation generally, will support carbon-based energy prices going forward (in other words, if you own O&G assets, then ESG is your friend). |
| TPB | TPB is trading at a high single-digit free cash flow yield. The nicotine pouch market has exploded, driving dramatic growth in TPB's business. TPB initially guided 2025 nicotine pouch sales to $60-80 million, then raised that to $80-95 million in March, $100-110 million in August, and $125-130 million in November. TPB could generate over $5.00 per share in earnings this year and $6.00+ next year as the market continues to grow. Looking out a few years, if TPB can garner 8% market share in a $12bn+ nicotine pouch market, it would generate approximately $1bn in sales. We think TPB could be worth $200-300 per share in the next few years. |
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