Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
White Brook Capital's Q1 2026 commentary highlights a challenging macro environment with higher inflation, oil prices, and debt costs following U.S. military action against Iran. The manager believes oil price normalization will take longer than markets expect, leading to delayed Federal Reserve rate cuts. AI continues advancing but employment impacts remain uncertain, with significant gaps between marketing claims and actual capabilities ahead of major IPOs. The portfolio focuses on undervalued small-cap opportunities, particularly in healthcare. Key holdings include ICON, a contract drug manufacturer trading at low multiples after a minor revenue restatement caused a 40% stock decline; Perma-Fix Environmental, positioned for nuclear waste disposal growth; S&P Global, purchased during an AI-driven sell-off; and two healthcare companies with conservative guidance the manager expects to be revised upward. The manager anticipates meaningful performance contributions beginning in Q2, with significant progress by Q3, despite the more challenging operating environment for companies generally.
White Brook Capital focuses on undervalued small-cap companies with strong fundamentals trading at significant discounts to intrinsic value, particularly in healthcare and specialized industrial sectors where conservative guidance masks underlying growth potential.
The manager expects meaningful performance contributions from current holdings in 2026, with news beginning in Q2 and significant progress by Q3. The operating environment looks materially harder for the next year due to higher inflation, oil prices, and debt costs, though individual portfolio companies are well-positioned for growth.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 22 2026 | 2026 Q1 | ICLR, PESI, RPID, SMTI, SPGI | AI, energy, healthcare, inflation, small caps, value |
ICLR PESI SPGI SMTI RPID |
White Brook Capital sees a challenging macro environment from geopolitical tensions driving higher inflation and delayed rate cuts, while AI adoption creates uncertainty. The fund focuses on undervalued small-cap healthcare and industrial companies trading at significant discounts, including ICON after a revenue restatement and S&P Global purchased during market volatility, expecting meaningful contributions in 2026. |
| Jan 31 2026 | 2025 Q4 | BLDR, FND, GOOG, JAKK, MSFT, MSTR, NVDA, PTLO, RPID, TSM | AI, crypto, growth, healthcare, inflation, semiconductors, small caps, value | - | White Brook Capital's manager sees opportunity in selective stock picking across market caps while avoiding AI and crypto manias. The firm's small cap strategy significantly outperformed in 2025, leading to confidence in a new all-cap approach targeting potential doubles. Key positions include semiconductor leaders as AI rent extractors and undervalued housing plays awaiting industry recovery. |
| Oct 16 2025 | 2025 Q3 | AMS, BLDR, BOF, CCLDO, CVEO, FND, GOOG, INFU, JAKK, MSFT, NVDA, PAYS, PTLO, QIPT, RGTI, RPID, TGT, TSM, TTSH | AI, Bubble, cash flow, growth, Homebuilders, small caps, value |
PTLO US TGT US |
White Brook Capital delivered strong small cap performance led by 300% gains in Rapid Micro Biosystems while warning of AI bubble dynamics. Value strategies underperformed as cash-generating companies lack market recognition. Manager maintains housing conviction expecting mortgage rate benefits and stays cautious on narrative-driven pricing over fundamentals across broader markets. |
| Jul 15 2025 | 2025 Q2 | AMZN, GOOGL, INFU, JAKK, META, MSTR, NVDA, PAYS, RPID | AI, crypto, defense, Ethics, Housing, small caps, SPACs, Strategy | - | White Brook Capital pivoted from underperforming midcap strategy to three new approaches, with Small Cap strategy delivering 191% YTD returns. The firm maintains pacifist investment criteria excluding defense despite sector strength, focuses on housing recovery and AI infrastructure, while warning of market mania signs in SPACs and crypto treasury companies. |
| Apr 5 2025 | 2025 Q1 | - | Cash, Fund Closure, Midcap, Separately Managed, Trade Policy, uncertainty | - | White Brook Capital Partners is closing after tariff announcements created an exceptionally unpredictable economic environment that makes midcap investing particularly challenging. The fund has liquidated positions and will return cash to investors. The firm continues with separately managed accounts, recommending higher cash allocations until policy uncertainty clarifies or compelling opportunities emerge. |
| Jan 27 2025 | 2024 Q4 | AFYA, BLDR, BOX, DNUT, GBX, GPRE, INFU, KAR, LTH, MOS, OKTA, PTLO, RPID, W | Brazil, Fertilizers, Food, healthcare, Housing, mid cap, technology, value | - | White Brook Capital owns good companies in out-of-favor industries expecting 2025 inflections. Brazilian investments should benefit from currency stabilization, housing plays are positioned for market recovery, and food concepts show operational improvements. Technology holdings offer AI upside while policy changes should benefit ethanol investments. Manager expects much better performance after forgettable 2024. |
| Oct 22 2024 | 2024 Q3 | AFYA, BLDR, DNUT, GPRE, LTH, MOS, OKTA, PETQ, W | consumer, Housing, M&A, Midcap, technology, value |
W OKTA DNUT AFYA GPRE BLDR |
White Brook Capital focuses on undervalued midcap stocks positioned for M&A activity and housing recovery. The fund sold PetIQ at takeout and reinvested in Wayfair, Okta, and Krispy Kreme. Manager expects increased M&A activity with lower debt costs and believes midcaps remain cheap relative to expensive large cap technology stocks. |
| Jun 30 2024 | 2024 Q2 | AFYA, BLDR, GPRE | AI, Biofuels, Brazil, Homebuilders, Rate Cuts, small caps, undervalued, value |
BLDR GPRE AFYA |
White Brook Capital's small-cap focused portfolio underperformed in H1 2024 as mega-cap AI stocks dominated. Manager sees AI valuations as disconnected from fundamentals and believes small caps are grossly undervalued. Expected Fed rate cuts should catalyze small-cap outperformance, with portfolio positioned for companies to double in value as economic conditions normalize and sector rotation begins. |
| Apr 27 2024 | 2024 Q1 | AFYA, BLDR, GBX, GPRE, KAR, KNX, LTH, PETQ, PTLO, RILY | consumer, healthcare, Pet Care, small caps, Trade Down, value | PETQ | White Brook Capital sees compelling value in small and mid-cap stocks while large caps remain expensive. The fund added three new positions including PetIQ, a pet care company benefiting from aging pet demographics and consumer trade-down trends. The manager repositioned the portfolio to exploit diverging consumer spending patterns between affluent and lower-income segments. |
| Jan 25 2024 | 2023 Q4 | AFYA, BLDR, GBX, GPRE, MOS, RILY | AI, Biofuels, commodities, Fertilizers, Homebuilders, mid cap, private credit, value |
BLDR IMOS GPRE RILY |
White Brook Capital targets undervalued mid-caps while avoiding expensive AI-driven mega-caps. Largest position Builders Firstsource benefits from housing recovery. Commodity exposure through Mosaic fertilizers and troubled Green Plains ethanol. Holds B Riley Financial through short attacks. Expects mid-caps to outperform as infrastructure spending and economic normalization benefit this overlooked segment. |
| Oct 20 2023 | 2023 Q3 | AFYA, BLDR, BOX, GBX, KNX, MOS, U | Autos, Homebuilders, interest rates, Rail Equipment, small caps, value |
DFGBX BLDR |
White Brook outperformed midcaps but lagged large caps in Q3 as recession fears drove systematic multiple compression despite solid fundamentals. Manager sees small and midcap stocks as very attractive for long-term capital, believing they are systemically undervalued. More bullish on economy than consensus given strong employment trends, expecting normalization by early 2024. |
| Jan 25 2023 | 2022 Q4 | BOX, GBX, MOS, RILY | - | - | |
| Apr 11 2022 | 2022 Q3 | BOX, GBX, ITRI, KAR | - | - | |
| Jun 30 2022 | 2022 Q2 | AFYA, ITRI | - | - | |
| Mar 31 2022 | 2022 Q1 | IAC, KAR, MHK, MTCH, QRTEA | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI advances continue with Anthropic's Claude and Google's Gemini leading, while OpenAI trails. Tools are becoming helpful for knowledge workers, particularly in finance, but employment impacts remain uncertain. The gap between marketing and capability is large with upcoming IPOs, making it prudent to treat news flow with skepticism. |
Artificial Intelligence Employment IPO |
OilAmerican military action against Iran has significantly impacted energy prices negatively in the near term. Oil price normalization will take longer than the market assumes, leading to higher inflation and delayed Federal Reserve rate cuts. This creates a more challenging operating environment for companies. |
Energy Inflation Geopolitical | |
SemiconductorsThe AI supply chain presents conflicting signals - Nvidia maintains dominance but cloud providers are contracting alternatives. Memory constraints exist but new processes may reduce requirements significantly. New chip production capacity is coming online but helium shortages create bottlenecks. |
Nvidia Memory Supply Chain | |
BiotechnologyContract drug manufacturing shows strong fundamentals with ICON's $24+ billion backlog and positioning in high-growth oncology and GLP-1 segments. The sector benefits from increasing demand for specialized manufacturing services despite some near-term execution challenges. |
Contract Manufacturing Oncology GLP1 | |
| 2025 Q4 |
AfricaFund delivered exceptional performance with 67.21% returns in 2025, significantly outperforming the 44.7% benchmark. Portfolio companies show strong fundamentals with forward PE of 6.1x, dividend yield of 8.0%, and expected EPS growth of 19.2%. Manager emphasizes that valuations remain attractive despite strong performance, with no multiple expansion driving returns. |
Frontier Markets Emerging Markets Equities Value Growth |
LiquidityManager provides detailed analysis of liquidity challenges in African frontier markets, noting structural factors including foreign investor participation, local retail involvement, and institutional buy-and-hold behavior. Acknowledges liquidity constraints but theorizes that bull market conditions should improve trading volumes and market participation. |
Market Structure Trading Institutional Foreign Investment | |
Capital MarketsDiscussion of African capital market development including recent IPO activity in Nigeria, privatization efforts in Kenya, and proliferation of new investment products in Tanzania. Manager notes structural tailwinds from growing pension savings pools and young demographics providing future equity demand. |
IPOs Privatization Market Development Demographics | |
| 2025 Q3 |
AIManager views AI spending as creating a bubble with mixture of substance and hype. Compares to fiber optic cable overinvestment but notes silicon processors have much shorter lifespans. Sees problematic warrant and share issuances in AI ecosystem deals. |
Artificial Intelligence Data Centers Semiconductors Bubble Spending |
Small CapsSmall Cap Absolute Growth Strategy has had tremendous success in first year, vastly exceeding expectations. Capital markets reopening is viewed as positive for small cap stocks. Strategy focuses on companies with significant growth potential but acknowledges higher volatility. |
Growth Micro Cap Liquidity Performance Volatility | |
ValuePerformance of value oriented stocks continues to be disappointing. All-Cap Portfolio shifted from mid to all-cap but remains overweight value and has trailed performance. Companies generating actual cash flow have trouble catching a bid. |
Cash Flow Underperformance Intrinsic Value Narrative | |
HomebuildersManager maintains belief that country is underhoused. Expects benefits to home building supply companies as mortgage rates decline or stay below 6.5%. Housing market remains near lows with mortgage rates above 7% slowing transactions. |
Housing Mortgage Rates Construction Supply | |
| 2025 Q2 |
SPACsSPACs are returning to market as a sign of mania, similar to 2021 when they led to tremendous short-term returns for sponsors but typical SPACs fell over 90% long-term. This represents a concerning market trend pushing extremes. |
SPACs Mania Speculation |
CryptoBitcoin treasury companies are becoming more numerous and trading at premiums to their bitcoin holdings. MicroStrategy's success has created an 'Infinite Money Machine' where companies issue shares to buy bitcoin repeatedly, benefiting leadership and shareholders during the mania but likely to destroy value when it ends. |
Bitcoin Treasury Premium Mania | |
Defense SpendingDefense sector is expected to be very profitable over the next several years due to wars in Ukraine, Gaza, and Iran, plus increased US defense budgets and NATO countries spending 5% of budgets on defense. Defense companies significantly outperformed during the period, up over 23%. |
Defense NATO Military Spending | |
AILarge cap tech companies are treating AI development as a 'race' and spending aggressively to compete, evidenced by Nvidia's processor spend and Meta's hundreds of millions on talent. The portfolio owns infrastructure companies and AI implementation companies but remains cautious on model builders. |
AI Infrastructure Competition Spending | |
Small CapsWhite Brook launched a Small Cap Absolute Growth Strategy that has been a standout performer, up 191.63% year to date gross of fees. The manager sees significant opportunities in small and micro caps currently and expects the strategy to continue growing positions. |
Small Cap Growth Opportunities Performance | |
| 2025 Q1 |
Trade PolicyThe manager cites tariff announcements as a key factor in the fund closure decision, describing the economic environment as exceptionally unpredictable due to trade policy uncertainty. The administration's willingness to operate in a parallel reality creates a challenging investment environment. |
Tariffs Policy Uncertainty Administration |
| 2024 Q4 |
BrazilTwo portfolio companies have significant Brazilian operations affected by currency devaluation of over 25% in 2024. Brazilian government passed fiscal measures reducing spending in late 2024, and currency pressures have abated. The manager expects significant returns if Brazil's currency stabilizes or improves versus the dollar. |
Currency Fiscal Exports Devaluation Real |
FertilizersPhosphate demand far exceeds supply with new battery use cases removing supply from fertilizer markets. Potash is well supplied and subject to international politics, with Belarus sanctioned but Russian potash flooding markets. Canadian potash may face Trump administration tariffs. |
Phosphate Potash Sanctions Tariffs Batteries | |
FoodPortfolio includes restaurant chains showing operational improvements. Portillo's announced same-store sales growth and is exploring financing buildings rather than leasing, enabling faster growth and improved free cash flow. Krispy Kreme doubled McDonald's rollout forecast despite cyber attack impacts. |
Restaurants Same Store Sales Franchising Partnerships Growth | |
HousingTwo investments positioned to benefit from housing market recovery. Builders FirstSource generated over $1.2 billion cash flow despite higher rates, while the nation remains underhoused. Wayfair is taking market share in a depressed environment and should benefit when the industry turns. |
Homebuilding Interest Rates Market Share Cash Flow Recovery | |
| 2024 Q3 |
HousingWhite Brook maintains a housing recovery thesis backed by a healthy US consumer, investing in Wayfair and Builders First Source. The fund expects lower mortgage rates and housing supply deficits to drive performance over the next 3 years, with hurricane rebuilding providing near-term support. |
Homebuilders Building Materials Mortgage Home Furnishings |
ValueThe fund focuses on midcap and small cap stocks which remain cheap relative to large caps and are good targets for M&A activity. White Brook expects significantly more transaction activity as debt costs have relatively lowered for acquirers. |
Small Caps Buybacks Quality | |
| 2024 Q2 |
AIManager expresses skepticism about current AI valuations and technology approach, particularly questioning large language models and AI hallucination as features rather than bugs. Notes that mega-cap AI companies are worth more than entire countries' public markets. |
Artificial Intelligence Nvidia Valuation Technology Hallucination |
Small CapsPortfolio focuses exclusively on small and mid-cap companies which were flat in first half while S&P 500 hit new highs. Manager believes small caps are grossly undervalued and underfollowed, with portfolio positioned for doubling in value. |
Russell 2000 Undervalued Outperformance Mid Cap | |
HomebuildersBuilders First Source suffered from elevated mortgage rates weakening new home and renovation demand. Manager expects building to resume as 30-year mortgage rates fall below 6.75% with 3-5 year upside as housing supply catches up with demand. |
Mortgage Rates Housing Supply New Homes Renovations | |
BiofuelsGreen Plains faced investor mismanagement issues but appears to have found discipline. Cheap corn across futures curve should support low operating costs, with potential for new management or sale at higher prices in second half 2024 or early 2025. |
Ethanol Corn Strategic Review Operating Costs | |
| 2024 Q1 |
Pet CareThe manager sees pet care as benefiting from aging pet populations requiring more medications and supplements, while less affluent consumers trade down to cost-effective products like PetIQ's offerings. The company benefits from pets' continued existence rather than just initial purchases, with supplements becoming their largest business segment. |
Pet medications Veterinary services Pet supplements Flea treatments Pet distribution |
Trade DownLess affluent consumers are feeling inflation effects and trading down while still spending on pets, favoring PetIQ's more cost-effective products and services. This dynamic creates opportunities for value-oriented providers in consumer categories. |
Consumer inflation Value products Cost-effective services Consumer spending Price sensitivity | |
Small CapsThe manager explicitly states that mid-cap and small-cap stocks are cheap both relatively and absolutely, while the S&P 500 remains expensive on historical and relative basis. This creates opportunities in the smaller capitalization space. |
Valuation disparity Mid-cap value Small-cap opportunities Market inefficiency Relative value | |
| 2023 Q4 |
AIManager expresses skepticism about AI valuations and implementation challenges. Discusses unresolved issues around data utility, monetization models, and the gap between investment levels and practical effectiveness. Notes that current AI applications like Microsoft Copilot are expensive to develop and poor value for money. |
Artificial Intelligence Technology Valuations Implementation Monetization |
Private CreditDescribes the growth of private credit as the new hot asset class, replacing traditional bank lending. Notes that private credit provides financing at junk-like yields with leverage enhancement and mark-to-model advantages. Mentions the emergence of collateralized loan obligations from these funds. |
Alternative Credit Shadow Banking Leverage Yield CLO | |
FertilizersMaintains substantial position in Mosaic for potash and phosphate exposure. Expects stable pricing in 2024 with 2% CAGR demand growth. Highlights potential battery demand catalyst from Tesla and Ford adoption of phosphate batteries. Views the company as generating substantial free cash flow with manageable debt. |
Potash Phosphate Agriculture Battery Metals Cash Flow | |
BiofuelsHolds troubled position in Green Plains for ethanol production and sustainable aviation fuel development. Company is converting to derive higher value products from corn including corn oil and high-density feed protein. Management execution issues persist despite strong strategic positioning. |
Ethanol Sustainable Aviation Fuel Corn Processing Management Conversion | |
HomebuildersBuilders Firstsource remains largest position as single-family homebuilding accelerates with settling interest rates. Company charges fixed percentage on building materials distribution and has proven to be excellent free cash flow operators. Expects more muted but positive returns after 1.5x appreciation. |
Building Materials Distribution Housing Cash Flow Interest Rates | |
| 2023 Q3 |
Small CapsManager believes small and midcap stocks are very attractive for long term capital and systemically penalized by recession fears despite better outcomes becoming more probable. Small companies are newly competitive against larger peers as supply chain pressures have receded. |
Small Caps Value Recession |
HomebuildersDespite higher interest rates slowing existing housing market, new homes are being built above consensus rate. The US continues to be under housed with occupancy at all-time highs, and the housing shortage will need to be rectified over the medium term. |
Homebuilders Housing Construction | |
Rail EquipmentRailcar industry planning for 40,000 deliveries over next 2-3 years to replace expensive cars. Higher interest rates benefit railcar lessors with lease rate increases of $100 per car per month for each 1% rate increase. |
Rail Equipment Logistics Rates | |
AutosUS new car inventory climbed to highest levels since spring 2021, back to normal for the industry. New car dealers have less bargaining power, which should lead to lower realized prices in the short term. |
Autos Inventory Pricing |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 22, 2026 | Fund Letters | White Brook Capital | ICLR | Icon Public Limited Company | Diagnostics & Research | Life Sciences Tools & Services | Bull | NASDAQ | Biotech Services, contract research organization, contrarian, drug development, GLP-1, Obesity Therapeutics, Oncology, revenue recognition, Value | Login |
| Apr 22, 2026 | Fund Letters | White Brook Capital | PESI | Perma-Fix Environmental | Waste Management | Environmental & Facilities Services | Bull | NASDAQ | Department of Energy, environmental services, Forever Chemicals, government contracts, growth, Hanford, Hazardous Waste, Nuclear Waste, Pfas, small-cap | Login |
| Apr 22, 2026 | Fund Letters | White Brook Capital | SPGI | S&P Global | Financial Data & Stock Exchanges | Financial Exchanges & Data | Bull | New York Stock Exchange | AI, analytics, contrarian, credit ratings, data centers, Defensive growth, financial data, Private Credit, Toll Business | Login |
| Apr 22, 2026 | Fund Letters | White Brook Capital | SMTI | Sanara Medtech | Medical Instruments & Supplies | Health Care Equipment | Bull | NASDAQ | CMS reimbursement, growth, healthcare, Hospital Distribution, Medical devices, medical technology, small-cap, wound care | Login |
| Apr 22, 2026 | Fund Letters | White Brook Capital | RPID | Rapid Micro Biosystems | Medical Devices | Life Sciences Tools & Services | Bull | NASDAQ | Amgen, biotechnology, Laboratory Equipment, life sciences, Merck, Microbial Detection, pharmaceutical manufacturing, Samsung Biologics, small-cap | Login |
| Oct 16, 2025 | Fund Letters | Basil F. Alsikafi | TGT US | Target Corp | Consumer Discretionary | General Merchandise Stores | Bull | NYSE | cashflow, consumer, dividend, management, retail, turnaround | Login |
| Oct 16, 2025 | Fund Letters | Basil F. Alsikafi | PTLO US | Portillo’s Inc | Consumer Discretionary | Restaurants | Bull | NASDAQ | growth, management, Margins, Restaurants, turnaround, valuation | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | DNUT | Krispy Kreme, Inc | Consumer Staples | Packaged Foods & Meats | Bull | NASDAQ | capital-efficient, CPG Transformation, Distribution Expansion, McDonald's Partnership, Outsourced Service, Premium Donuts, Retail Partnerships, Underearning | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | AFYA | AFYA, Inc | Consumer Discretionary | Education Services | Bull | NASDAQ | Brazil, controlling family, Depressed valuation, Free Cash Flow, insider buying, Medical Education, Minority Squeeze, Takeout Candidate | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | GPRE | Green Plains Inc | Energy | Oil & Gas Refining & Marketing | Bull | NASDAQ | Activist Situation, Biorefining, Comparable Transactions, Debt Covenant, Ethanol, Management Pressure, Proxy Contest, Sale Catalyst | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | BLDR | Builders FirstSource, Inc | Industrials | Building Products | Bull | NASDAQ | Building Products, construction materials, Housing Permits, Housing recovery, Hurricane Rebuilding, mortgage rates, political support, supply deficit | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | W | Wayfair, Inc | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Consumer Discretionary, e-commerce, Free Cash Flow, Furniture Retail, Housing recovery, Tariff risk, US consumer | Login |
| Sep 30, 2024 | Fund Letters | White Brook Capital | OKTA | Okta, Inc | Information Technology | Systems Software | Bull | NASDAQ | access management, identity management, Market Impatience, Nascent Growth, SMB Employment, Software, technology | Login |
| Jul 16, 2024 | Fund Letters | White Brook Capital | BLDR | Builders First Source | Materials | Building Products | Bull | NASDAQ | Building materials, construction, Cyclical, homebuilding, Housing supply, materials, mortgage rates | Login |
| Jul 16, 2024 | Fund Letters | White Brook Capital | GPRE | Green Plains | Energy | Oil, Gas & Consumable Fuels | Bull | NASDAQ | activist investor, Biofuels, Corn Processing, energy, Ethanol, strategic review, turnaround | Login |
| Jul 16, 2024 | Fund Letters | White Brook Capital | AFYA | Afya Ltd | Consumer Discretionary | Diversified Consumer Services | Bull | NASDAQ | Bertelsmann, Brazil, Currency, Education Services, Emerging markets, Medical Education, take-private | Login |
| Mar 31, 2024 | Fund Letters | White Brook Capital | PETQ | PetIQ, Inc. | Consumer Staples | Pet Products | Bull | NASDAQ | Community Clinics, consumer staples, Defensive growth, Distribution, Generic Medications, Inflation beneficiary, pet healthcare, Retail Partnerships, supplements, Veterinary Services | Login |
| Sep 30, 2023 | Fund Letters | White Brook Capital | DFGBX | Greenbrier Companies | Industrials | Construction Machinery & Heavy Transportation Equipment | Bull | NYSE | backlog visibility, Industrial Equipment, interest rate sensitivity, Leasing Operations, manufacturing capacity, Railcar Manufacturing, Replacement Demand, Transportation equipment | Login |
| Sep 30, 2023 | Fund Letters | White Brook Capital | BLDR | Builders FirstSource | Industrials | Building Products | Bull | NASDAQ | Building Products, construction materials, Free Cash Flow, Homebuilder Supplier, Housing shortage, Housing supply, interest rate impact, Renovation Activity | Login |
| Dec 31, 2023 | Fund Letters | White Brook Capital | BLDR | Builders FirstSource Inc | Materials | Building Products | Bull | NASDAQ | Building materials, Distribution, Fixed Percentage Model, Free Cash Flow, homebuilding, Housing shortage, Private-label | Login |
| Dec 31, 2023 | Fund Letters | White Brook Capital | IMOS | Mosaic Co | Materials | Fertilizers & Agricultural Chemicals | Bull | NYSE | agriculture, battery materials, capital allocation, commodity, Fertilizers, Free Cash Flow, Phosphate, Potash | Login |
| Dec 31, 2023 | Fund Letters | White Brook Capital | GPRE | Green Plains Inc | Energy | Oil & Gas Refining & Marketing | Bull | NASDAQ | Activist Target, Biofuels, Corn Processing, Ethanol, renewable energy, Sustainable aviation fuel, turnaround, Value | Login |
| Dec 31, 2023 | Fund Letters | White Brook Capital | RILY | B Riley Financial Inc | Financials | Investment Banking & Brokerage | Bull | NASDAQ | Asymmetric Risk, Capital markets, contrarian, Distressed, investment banking, M&A, Russell 2000, Short squeeze | Login |
| TICKER | COMMENTARY |
|---|---|
| ICLR | Icon Public Limited Company is a global contract drug manufacturing company we've followed for some time but was always too well priced to own. In February, the company disclosed an internal investigation into revenue recognition that would impact revenue by less than 2%. The stock fell 40%. We like the fundamentals of the contract drug manufacturing industry and ICON's record $24+ billion backlog. We don't believe the restatement should impact their margin opportunity, their existing contracts, or their ability to win new business and anticipate a significant rally after their formal restatement filing. We believe the company trades at a low double digit multiple of free cash flow, a fraction of its historical average and a price that materially underestimates the strength of their business. |
| PESI | Perma-Fix Environmental is a hazardous waste disposal company in the early days of a J-curve in revenue growth. Their most significant near term opportunity is the disposal of nuclear waste at their Hanford plant. This $200 million market capitalization company with $60 million in revenue will add $1-2 million per month in revenue to grout low activity nuclear waste in the next year as the disposal ramps to at least $70 million per year for the next 10 years. Additionally, there is an additional opportunity to earn a piece of an additional $4 billion in work currently being evaluated and awarded by the Department of Energy where Perma-Fix has the only regional facility to support the contract. |
| SPGI | S&P Global is one of the financial market's greatest toll businesses. White Brook bought a position during the first quarter when one of the quarter's AI driven market sell-offs drove the price from >$550 to ~$380 on the speculation that artificial intelligence will destroy its moat. In reality growth and tumult in private credit, data center financing, and AI driven financial engineering products reinforce the necessity of the company's services as a provider of ratings, analytics, and insight. We believe the company is a rare combination of defensive resilience and high-growth potential and are thrilled by the price that we were able to buy it. |
| SMTI | Sanara Medtech continues to be an extremely favorable risk reward. On their fourth quarter call they offered revenue guidance of 13-17% growth in line with sell side expectations but below the 20% some hoped for. At their valuation, we believe the forecasted growth to be more than good enough and likely to be revised upward. With increasing evidence of their product's efficacy recently released and a focus on increasing per hospital doctor penetration, we continue to believe that there is significant room for sustained growth rate acceleration. |
| RPID | Rapid Micro Biosystems also continues to be an extremely favorable risk reward. On their fourth quarter call, similar to last year, they also offered underwhelming guidance. We believe guidance to be conservative given increasing business momentum with significant early rollouts with Amgen, Samsung Biologics, and Merck Millipore - all of which have capacity and are likely to place large follow-on orders. We believe management is exceptionally conservative, the company is well positioned, and the company represents the best risk reward in the portfolio. |
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