Black Bear Value Partners Q4 2024 Letter

2025-01-10 02:30:00 ET

Summary

• The Black Bear Value Fund returned -1.4% in 2024, underperforming the S&P 500's +25.0%, but remains optimistic about its concentrated investments and long-term theses.
• Key investments include undervalued foreign stocks, housing, met coal, energy, and regional bank/REIT turnarounds, with significant potential for high returns in the next 12-24 months.
• Short positions in banks, private credit lenders, and legacy data centers are expected to face valuation corrections due to overmarked assets and economic risks.
• The portfolio is poised for significant gains as companies exit investment cycles, with strong management teams and compelling valuations driving future performance.

“You have to accept the fact that sometimes you are the pigeon, and sometimes you are the statue.” -Claude Chabrol

To My Partners and Friends:

Black Bear Value Fund, LP (the “Fund”) returned -9.4% in December and -1.4% in 2024. The S&P 500 ( SP500 , SPX ) returned -2.4% in December and +25.0% in 2024. The HFRI Index returned -1.2% December and +11.5% in 2024. We do not seek to mimic the returns of the S&P 500 and there will be variances in our performance....

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