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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Cedar Creek Partners 2024 Q4 Investor Letter | Buyside Digest

Back to Fund Profile (Cedar Creek Partners)

Primary Source Intelligence • Q4 2024 Letter Analysis

Cedar Creek Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Cedar Creek Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+15.2%

Digest Analysis

Quick Take

"Cedar Creek Partners targets deeply undervalued microcap stocks trading at 7.7x forward earnings. Defense contractor Solitron Devices benefits from record HIMARS and AMRAAM demand driven by Ukraine conflict."

Executive Summary

Cedar Creek Partners returned 5.2% net in 2024, underperforming major indices but maintaining its 19-year track record of 14.0% annualized returns. The fund focuses on microcap and OTC stocks, with current holdings trading at 7.7x forward earnings and 6.2x earnings net of cash. Expert market exposure increased to 31% of the portfolio despite regulatory challenges. Key positions include defense contractor Solitron Devices, which received record $8 million in bookings driven by HIMARS and AMRAAM programs benefiting from Ukraine demand. The fund also holds positions in companies executing shareholder-friendly capital allocation, including Western Capital Resources and Citizens Bancshares, both reducing share counts significantly. Special dividend plays like Pardee Resources, which paid $25 per share in December, provide additional return drivers. While expert market holdings declined in 2024, the manager believes these deeply discounted positions will generate satisfactory returns over time. Cash levels increased to 8% from new capital and acquisition proceeds.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evidenced by concentrated portfolio with detailed analysis of individual holdings. Manager provides specific position sizing (Propel 10%, First IC 5%, others 4% each) and clear investment theses. Increased expert market exposure despite regulatory headwinds demonstrates strong conviction in specific names.

Growth Outlook

25%

BearishBullish

Bearish (25%)

Manager acknowledges falling short of major indices in 2024 but expresses confidence in portfolio construction for future years. Sees attractive valuations in current holdings but no broad market enthusiasm expressed.

Risk Appetite

50%

DefensiveAggressive

Balanced (50%)

Increased expert market exposure to 31% despite regulatory restrictions shows risk appetite. Re-entered several positions and maintained concentrated approach. Cash increased to 8% but primarily due to inflows and acquisitions rather than defensive positioning.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

Cash increased from 3% to 8% primarily due to new money inflows and acquisition proceeds rather than active deployment. Re-entered three positions (Evercel, Pardee, Western Capital) but no major new deployment described. Net neutral to slight deployment activity.

Forward Guidance

40%

CautiousExpansionary

Neutral (40%)

Manager states belief in generating solid returns in coming years and expects expert market holdings to perform satisfactorily over time. Specific catalysts identified for defense holdings but overall guidance is measured rather than aggressive.

Language Signal

30%

BearishBullish

Bearish (30%)

Language focuses on attractive valuations, solid returns, and satisfactory performance rather than strong bullish terminology. More emphasis on patience and long-term value realization than immediate upside opportunity.

Perceived Risk

25%

Low RiskElevated

Low Risk (25%)

Limited risk discussion beyond acknowledging underperformance in 2024. Manager notes regulatory challenges with expert market stocks but frames these as opportunities rather than significant risks. No macro or systemic risk concerns expressed.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

Manager states having more attractive ideas than capital and sees plenty of room for new investment. Current holdings described as trading at incredibly attractive prices. Multiple specific opportunities identified across defense, banking, and special situations.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Clear long-term orientation with 19-year track record emphasized. Manager willing to hold through short-term volatility as evidenced by expert market positions. Expects multi-year thesis realization for defense programs and other holdings. No urgency for near-term catalysts.