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Third Quarter 2018 Letter: Time to Simplify

Our third quarter letter discusses our performance, our opportunity set, and some important changes that will simplify our lives.

Click here to read our 3-page third quarter letter.

Speed Read:

  • The quarter was not satisfactory in an otherwise decent year. Our portfolio’s risk-reward hit an unprecedented high today, which is often a reliable indicator of future performance;
  • Having >30x our assets under management, we’ve outgrown our old structure. Starting 1/1/19, we’ll have just a domestic fund and international fund with separate classes to prevent dilution to our coinvestment, which remains our highest conviction opportunity;
  • Our Founders’ class is closing by the end of this year and the fee structure will slightly change for new investors. There will be no change for existing investors until we proactively lower fees with even greater scale;
  • Finally, we briefly summarize the research updates we’ve posted and will continue to post on our concentrated portfolio as well as give a preview to a presentation we’ll give towards the end of this month to an international value conference.

Third quarter 2018 letter to investors.

This Post Has 2 Comments

  1. Stephen,

    Why do you think that Tripadvisor’s hotel revenue continues to decline in 2018? I think many people reasoned that their initial rollout of direct booking confused some of their users, but this would seem to be an easy fix. Why hasnt the direct booking worked out better? Will TRIP abandon it all-together?

    Personally, I always use direct booking on tripadvisor, and I think it works much better than being linked to another website. I can’t wrap my head around why the users are growing, but the hotel revenue is declining.

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