BOLRF - Second Quarter 2019 Letter: Pent-Up Alpha
We have posted our brief quarterly letter.
Speed Read:
- Our underperformance this year reflects irrational prices that have become even less rational, particularly with the view we have on the board of our largest position;
- Our portfolio has higher FCF growth (+61% in the last 18 months) and a higher FCF yield (14%) than the market and even FANG, yet the securities still managed to under-perform. This has led to significant pent-up alpha as fundamental value will continue to accelerate in the next 18 months;
- Hyperbolic discounting, a cornerstone of behavioral economics, suggests when the