ATEX - Steel City Capital Investments Q2 2021 Letter

• Steel City Capital Investments, LLC is a registered investment advisor that provides investment management services to a long-biased investment fund and separately managed accounts. We adhere to a value-oriented investment in our pursuit of generating long term growth of capital for investors.
• In the second quarter Steel City Capital, LP gained 3.2%, net of fees and expenses. Year-to-date, the Partnership gained 11.1%, net.
• Despite the overall positive outlook provided by management, shares barely moved on the day of the presentation. It wasn’t until the following day that, without warning, ATEX rocketed ~17% higher.
• Management updated guidance, and frankly, the financial outlook is worse than I was expecting. Adjusted OperatingIncome is forecast at $75 million. PAC – ex. SBC – is forecast at$66 million.
• This is larger than the company's cumulative net loss for the past six years combined! A historically unprofitable insurance company with growing net losses is not worth $4.6 billion.

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