CZR - 1 Main Capital Partners Q4 2024 Fund Letter

2025-02-14 23:20:00 ET

Summary

• The Fund returned (2.8)% in Q4, bringing the YTD return to 8.2%, compared to 25.0% for the S&P 500 and 11.5% for the Russell 2000.
• Despite underperformance in 2024, I remain optimistic about our holdings, particularly IWG, which has significant upside potential due to its managed workspace model.
• Market breadth was narrow in 2024, driven by US mega-caps, leading to significant concentration in SPX-linked passive strategies and potential price distortions.
• The Fund is well-positioned for strong future performance, focusing on cheap, cash-generative, and growing companies, while avoiding businesses overly dependent on low-cost labor and low interest rates.

Dear Partners,

In the fourth quarter, 1 Main Capital Partners, L.P. (the “Fund”) returned (2.8)% net, bringing its year-to- date return to 8.2%. This compares to full year returns of 25.0% and 11.5% for the S&P 500 ( SP500 , SPX ) and Russell 2000 ( RTY ) ¹ , respectively. Since its inception nearly six years ago, the Fund has delivered an annualized net return of 20.9%, compared to 13.1% and 6.5% for the SPX and RTY, respectively. Accordingly, a $1 million investment at inception would be worth $3.7 million today, after all fees and expenses. The same amount invested in the SPX or RTY (with dividends reinvested) would be worth $2.3 million and $1.5 million, respectively. ...

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