Investments

We are long shares of Maxar Technologies, a leading provider of space-based imagery and infrastructure as it nears the launch of a game-changing new constellation, WorldView Legion. The operational and financial benefits of the new fleet once it enters service will be nothing short of transformative…

We are long shares of Acutus Medical, a small-cap medical device company that we believe will play a central role in changing the treatment paradigm for persistent atrial fibrillation (AF) and other complex arrhythmias. Evidence that catheter ablation successfully treats less advanced forms of AF has been mounting for years, but persistent AF remains intractable: pharmaceutical intervention rarely succeeds and 30-50% of patients undergoing ablation suffer a relapse into AF in less than a year. Because unresolved AF increases the risk of stroke, heart failure, dementia, and other cardiac disease, the unmet need for…

We are long shares of UP Fintech, the holding company of Tiger Brokers, which we believe is positioned to become the Robinhood of China. Love it or hate it, you have to admit that Robinhood has created an enormous amount of value for its investors in a very short time: having debuted its trading app in 2015, the company…

“I’ve heard a lot about Korn Ferry’s ability to build a brand around digital transformation and attract the  right leaders…and to make use of the data and insights to drive strategic sales growth…as we prioritize our own digital transformation, they’re favored to win projects” – HR executive from a $10bn+ global business…

We are long shares of Intelsat and SES, two large satellite operators with significant and underappreciated 5G spectrum assets. For us, this is an unusual position to be in. For years, with our reports on Globalstar (2014), Straight Path (2015) and DISH (2016), we have publicly railed against the excesses of spectrum hype. Time and again, we have argued, equity investors have gotten carried away with their enthusiasm about offbeat frequencies and futuristic…

We are long shares of Adamas Pharmaceuticals, a small-cap drug company on the eve of launching its first product: a treatment called Gocovri for patients with Parkinson’s disease. The mainstay therapy for Parkinson’s is a drug called levodopa, which usually works well but frequently causes involuntary and often painful movements called dyskinesias. High-quality Phase 3 studies have proven that Gocovri significantly reduces dyskinesias and improves patients’ overall conditions, leading the FDA to designate Gocovri the one and only drug approved for…

We were impressed with the quality of Luxoft’s people. More than 70% of Luxoft employees are senior specialists with over 7 years of experience, and over 80% are educated to Master’s or Ph.D. level. At Luxoft we’ve found teams of experts ready to grill you with tough questions. And that’s what you need on complex projects.

– Daniel Marovitz, Former COO at DB’s global banking unit…

We are long shares of Webster Financial (WBS). Our full 44-page report is available here.

We also issued a letter to the company this morning encouraging management and the board of directors to explore strategic options to highlight the value of HSA Bank, including a potential spin-off of the asset.

Additionally, we will host in-person meetings on March 5th and 6th in New York to discuss our views with interested investors. Please contact myself and Theresa Callahan at tcallahan@kerrisdalecap.com if you would be interested in attending these meetings…

Our 42-page report explaining our long thesis for JGWPT Holdings (JGW) is available here.

We are long shares of JGWPT Holdings (NYSE:JGW), which, via its J.G. Wentworth and Peachtree brands, is the number-one player in an attractive consumer-finance market niche. JGW provides liquidity to personal-injury plaintiffs, lottery winners, and others who are entitled to long-term payment streams but have near-term financial needs. Despite its 60-70% market share, attractive organic growth rate, and ability to compound capital through acquisitions and platform expansion, JGW trades at a consensus P/E ratio of 7x, an EV/EBITDA multiple of 8x, and at nearly half of our estimate of intrinsic value…

Our 35-page report explaining our long thesis for Lindsay Corp. (LNN) is available here.

We are long shares of Lindsay Corporation (NYSE:LNN), a global irrigation business headquartered in Omaha, Nebraska. Lindsay owns a world-renowned brand name (Zimmatic), sells into an under-penetrated market and benefits from the secular trends of increasing global food scarcity and rising protein consumption. Given this long-term growth opportunity, a robust capital efficiency profile (ROIC of 25%+), and the stock trading at 13.7x net-cash P/E on trough FY 2014E earnings, we believe shares trade at a 50% discount to our conservative estimate of intrinsic value…

Our 19-page report explaining our long thesis for Prime Office REIT-AG (PMO.DE) is available here.

Summary 
Prime Office REIT-AG (PMO.DE or “Prime”) is an undervalued German REIT with several near-term catalysts that could unlock its true intrinsic value. With a current share price of just €2.98, Prime Office trades at a high 55.1% discount to book value (“NAV” or “net asset value”) and a 22.4% discount to gross asset value (“GAV”), more than double that of comparable German commercial real estate companies. Prime Office is a busted IPO from June 2011 that owns twelve multi-story office properties in Tier-1 German cities including Munich, Stuttgart, and Frankfurt. These hard-to-replicate, well-equipped buildings house high credit quality tenants like Medtronic, Daimler-Benz, and Deutsche Telekom…

We believe that AMERCO (“UHAL” or the “Company”) is highly undervalued. We are long the stock.

Our 30-page report explaining our long thesis for UHAL is available here.

AMERCO is an underfollowed holding company that owns one of America’s most ubiquitous businesses: U-Haul, the nation’s dominant do-it-yourself (“DIY”) moving company. For over 60 years, numerous well-financed competitors have tried, and failed, to encroach on U-Haul’s ever-growing lead in the DIY moving equipment rental market. Today, U-Haul controls its market niche, with more than 8x as many hubs as its nearest competitor, and is growing revenue and profit at a steady clip while gaining market share…