ADYEY - Deep Sail Capital Partners Q1 2024 Investor Letter

2024-04-24 06:30:00 ET

Summary

• Our mission at Deep Sail Capital is to compound the capital of our Limited Partners over long periods of time while being mindful of tax implications.
• For Q1 2024, Deep Sail Capital Partners returned 13.0% net of fees while averaging 84% net long exposure.
• In the first quarter, the fund outperformed our benchmarks, the Russell 2000 index and the Russell Mid-Cap Growth Index.
• The short portfolio generated a positive return for the fund in Q1, partly driven by the regression to the mean in some high-flying shorts like Affirm Holdings, Tesla, and Archer Aviation.

Investors,

For the first quarter of 2024, Deep Sail Capital Partners (the "Fund") returned 13.0% net of fees while averaging 84% net long exposure. Please consult your individual capital account statements for your individual net returns.

In the first quarter, the fund outperformed our benchmarks, the Russell 2000 index and the Russell Mid-Cap Growth Index. Both the long portfolio and the short portfolio generated positive returns for the fund in Q1. The long portfolio performance was driven by strong performance within several microcap companies, including Creative Realities ( CREX ) (for which I described my investment thesis in the Q3 2023 investor letter) and Atlas Engineered Products ( APEUF ) (for which I described my investment thesis in the Q2 2022 investor letter)....

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