HMHC - Greystone Capital Management - Houghton Mifflin Harcourt: A Dominant Cash Generative Business

• During the quarter we entered into a core position in Houghton Mifflin Harcourt, a small cap education company undergoing a strategic business shift set to enhance their customer captivity, value prop and margin profile.
• Reality suggests that HMHC is a dominant cash generative business currently at an inflection point, with a new streamlined cost structure capable of delivering strong fundamentals through all cycles.
• There are currently significant industry tailwinds that exist in the form of increased education spending by state and local districts, with a large boost being provided by ‘catch up’ spend earmarked for COVID related learning loss.

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