SSRM - Palm Valley Capital Fund Q3 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 third quarter ending September 30, 2021, the Palm Valley Capital Fund declined 1.06% compared to losses of 2.85% and 3.67% for the S&P SmallCap 600 and Morningstar Small Cap Index, respectively.
• The Fund’s securities declined 3.4% over the period, which was mainly due to our precious metals holdings. Cash represented 79.8% of Fund assets at quarter end. This was a slight reduction over the period. We believe the Fund’s average discount expanded.
• We did not completely sell any positions during Q3. During the quarter, we purchased TreeHouse Foods, the market leading provider of private label foods in the U.S.

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