TCTZF - SaltLight Capital Q1 2024 Co-Investor Letter

2024-05-07 23:25:00 ET

Summary

• SaltLight Capital Management started in 2015 and has grown tremendously, with assets under management doubling each year. Our investment process is continuously evolving.
• The SaltLight Worldwide Flexible Fund is off to a good start this year, with a +9.2% return for the first quarter.
• In this letter, we talk general portfolio updates, pontificate on ‘self-healing’ as a thesis, delve into the offshore oil supplier opportunity and review a few members of our ‘Distressed 5’ South African businesses.

Dear Co-investor

The SaltLight Worldwide Flexible Fund is off to a good start this year, with a +9.2% return in the first quarter of 2024. We had contributions from our ‘Distressed 5’ SA portfolio, AppLovin ( APP ) and our Offshore Oil exposure.

In this letter, we discuss general portfolio updates, pontificate on ‘self-healing’ as a thesis, delve into the offshore oil supplier opportunity, and review a few members of our ‘Distressed 5’ South African businesses.

Portfolio Update

Over the past six months, we’ve observed increasing divergences within our portfolio. Our investments in AI Infrastructure from three to four years ago have performed admirably for us; however, we became concerned with their high valuations and have pruned them significantly. The remaining portfolio is demonstrating solid underlying momentum, which is a reason for optimism for future returns....

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