TPB - Atai Capital Management Q1 2024 Letter

2024-05-02 08:00:00 ET

Summary

• Atai ("Value" in Japanese) Capital Management is a long-only, concentrated, unlevered fund run through separately managed accounts (SMAs). We employ a repeatable small-cap-focused value strategy and are based in Fort Worth, Texas.
• Atai Capital experienced a decline of 1.2% in the first quarter net of all fees.
• We added one small tracker position throughout the quarter and increased our size materially in an undisclosed position.

Dear Partners,

Atai Capital experienced a decline of 1.2% in the first quarter net of all fees. This compares to a 10.6% total return for the S&P 500 ( SP500 , SPX ), a 5.2% total return for the Russell 2000 ( RTY ), and a 4.7% total return for the Russell Microcap.

As a reminder, we run a concentrated portfolio of mostly uncorrelated stocks (IE-not included in an index and or a minor component of one), so periods of both relative underperformance and outperformance should be expected. However, that does not make our underperformance compared to the S&P 500 any less frustrating in the short term. Nevertheless, I remain enthusiastic about our portfolio's prospective returns....

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