WHGLY - Palm Valley Capital Fund Q1 2021 Commentary

• The Palm Valley Capital Fund invests in small cap stocks. While our Fund is new, its underlying absolute return-based investment strategy is not. We have practiced the same strategy throughout our careers in investment management.
• For the quarter ending March 31, 2021, the Palm Valley Capital Fund gained 3.60%, trailing the S&P Small Cap 600 Index (+18.23%) and the Morningstar Small Cap Index (+11.62%).
• We increased our Fund’s investment exposure last spring when stocks fell sharply and valuations improved, and we have reduced risk during the market’s warp speed return to bubble territory.
• While some investors are selling gold due to rising interest rates, they may be ignoring the possibility that increasing rates are telegraphing higher inflation as opposed to sustainable economic growth.
• During the last three months, we established positions in the Sprott Physical Gold Trust, SSR Mining, Carters, and WH Group.

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