2023-11-08 02:25:00 ET
Summary
- LRT Capital is a fundamental investment hedge fund. Our sole aim in crafting our investment program is to maximize long-term investment returns.
- October was a challenging month for the investment strategy, with long holdings declining sharply due to poor reactions to earnings releases.
- Despite the decline, year-to-date returns are ahead of the S&P 500 and most other relevant indexes.
- The portfolio manager believes the drawdown will be short-lived and expects good results in the months ahead.
Dear Friends & Partners,
Our investment returns are summarized in the table below:
Strategy | Month | YTD | 12 Months | 24 Months | 36 Months | Inception |
LRT Global Opportunities | -14.73% | +16.47% | +14.66% | -11.71% | +7.64% | +19.47% |
Results as of 10/31/2023. Periods longer than one year are annualized. All results are net of all fees and expenses. Past returns are no guarantee of future results. Please see the end of this letter for additional disclosures.
October was a challenging month for our strategy, with our long holdings declining sharply due to idiosyncratic events, primarily poor reactions to earnings releases, partially offset by our hedges. Leading the decline were our positions in Align Technology Inc ( ALGN ), Asbury Automotive Group, Inc. ( ABG ), Simpson Manufacturing Co., Inc. ( SSD ) and InMode Ltd. ( INMD ). Despite the decline other the past two months, year-to-date (+16%) we are well ahead of the S&P 500 (+9.2%) and the Russell 2000 (-4.6%) and most other relevant indexes. During the month I reduced risk and I believe that our portfolio has very little downside right now. I believe protecting capital is the most important thing right now, and that significant upside and opportunities lie ahead.
I expect this drawdown to be relatively short-lived and that our strategy to deliver good results in the months ahead.
As always, if you have any questions, please don’t hesitate to contact me. Thank you for your ongoing support.
Lukasz Tomicki,
Portfolio Manager LRT Capital
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
For further details see:
LRT Capital Management October 2023 Investor Update