UNTC - Kingdom Capital Advisors Q2 2024 Investor Letter

2024-07-12 07:10:00 ET

Summary

• Kingdom Capital Advisors is a Registered Investment Advisor. Using separately-managed accounts, KCA provides investors access to its actively-managed portfolio of small-cap and micro-cap equities.
• We’ve completed ten quarters since the launch of Kingdom Capital Advisors.
• Kingdom Capital Advisors returned 5.40% (net of fees) in the second quarter, vs. -3.28% for the Russell 2000 TR, 4.28% for the S&P 500 TR, and 8.05% for the NASDAQ 100 TR.
• Our top contributors to Q1 returns were Regis Corporation and Entravision, while Hanesbrands and Abacus Life warrants were our largest detractors.

Fellow Investors,

We've completed ten quarters since the launch of Kingdom Capital Advisors. A short time by investment measures, but an exciting time, nevertheless. Our primary benchmark, the Russell 2000 TR, is basically flat since KCA's inception as "small cap" stocks struggle to garner interest. Meanwhile, the S&P 500 and the NASDAQ continue to mint new all-time highs on the backs of "mega-cap" technology stocks. Despite investors' lack of interest in our chosen corner of the market and the relative underperformance of "small cap" stocks, we've managed to outpace the major US indices since January 2022. This brief measurement period has provided some initial validation for our stock-picking strategy, and we eagerly await an investing environment where "small caps" experience relative strength....

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