Tourlite Capital Management Fourth Quarter 2022 Investor Letter

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To My Partners:

Tourlite Fund, LP Founder Class returned 3.4% for nan Fourth Quarter of 2022. The money has returned 5.0% since inception successful April 2022, compared to a -14.2% diminution for nan S&P 500.1,2 Below, we show greater item connected capacity contribution.

Fourth Quarter 2022

Since Inception (Apr ’22 - Dec ‘22)

Tourlite Founders



S&P 500



HFRI Equity Market Neutral



HFRI Equity Hedge Index



Gross Contribution & Year End Portfolio Exposures3

Gross Contribution & Year End Portfolio Exposures3

Performance Commentary

Our basal long/short equity portfolio performed highly good successful 2022. Our agelong portfolio declined -12.7%, outperforming a diminution of -14.2% for nan S&P 500 and -14.0% for nan Russell 2000. Our short portfolio returned 32.2%. This represents a important outperformance of 18% supra nan inverse S&P 500 and 18.2% for nan inverse Russell 2000. During nan 2nd and 3rd 4th of nan year, we allocated a greater information of our vulnerability to hedges, resulting successful a antagonistic resistance connected performance.

Relative Performance of Long & Short Portfolio [8]

Relative Performance of Long & Short Portfolio

Given our constricted nett vulnerability during nan year, we show nan capacity of nan HFRI Market Neutral Index.[9] While a adjacent benchmark for 2022, it whitethorn not beryllium nan champion comparison successful a emblematic twelvemonth if our nett vulnerability is accrued to our targeted 15-20% nett vulnerability range. The HFRI Equity Hedge Index[10][11] is simply a broader long/short beingness pinch a higher beta comparative to nan equities market.

Year-to-Date Gainers & Detractors



Auto Basket Short

Event Driven Investment



Undisclosed Long


Auto Retail Short

Arbitrage Position

Consumer Short

Perimeter Solutions

Special business investments had a antagonistic effect of -7.3% connected our gross performance. These investments included arena driven, arbitrage, activism, and different typical situations. In situations wherever we believed to person identified a difficult catalyst, nan money purchased equity options. In immoderate of these scenarios we believed nan consequence reward to beryllium up to 4:1. At nan clip of entering these positions, we had nan belief that nan marketplace was not correctly pricing successful nan imaginable scope of imaginable outcomes. In hindsight, location are immoderate of these positions we would not make again but we would for many, arsenic we judge we correctly analyzed nan disposable information.

When analyzing performance, we see our batting mean and slugging percentage. Batting mean is nan percent of positions wherever we generated alpha. Slugging percentage, a usability of position sizing, reflects nan magnitude of alpha generated erstwhile correct vs. alpha mislaid erstwhile incorrect. Ideally, if winners are sized larger than losers, your slugging percent is higher than batting average. For 2022, we had a higher batting mean than slugging percent owed to a fistful of ample typical business investments.

Much of these losses were owed to timing alternatively than having an incorrect thesis. Being early, particularly erstwhile utilizing derivatives, often results successful being wrong. As we look to amended our slugging percentage, we purpose to tighten our consequence guidance by reducing nan size of individual typical business positions. This will let america to withstand greater value variability while our theses play out.

A ample detractor successful our typical business portfolio was an arbitrage position during nan 3rd quarter. While location was nary timeline for nan worth of nan securities converge, we believed it to beryllium highly apt complete time. The evident consequence was nan chance nan dispersed would widen earlier converging. After accumulating a position, nan dispersed betwixt these securities widened, negatively impacting nan fund’s capacity for nan period of August. Though discussions pinch management, it became unclear erstwhile location would beryllium a catalyst to trim nan spread, and truthful we exited nan position astatine a loss. In nan pursuing months, a scheme was announced that would converge nan spread betwixt nan securities and nan dispersed meaningfully converged. Our correction was having a position excessively ample to withstand nan existent downside risk, moreover arsenic our original thesis played out.

Investment Strategy & Objectives

Our finance accuracy is derived from nan belief that a business’ semipermanent expertise to make rate travel is nan superior driver of value. We are focused connected purchasing precocious value businesses astatine charismatic valuations and purpose to return short positions successful companies pinch mediocre fundamentals trading supra adjacent value.

We look to seizure diversified sources of alpha from some agelong and short positions. Our long/short portfolio, built upon nan instauration of our basal investigation process, allows america to execute our stated objectives to thrust alpha and hedge risk. We attraction connected acquiring precocious value businesses trading astatine a important discount to adjacent value. These businesses see compounders, orphans, affirmative anticipation spread and typical situations. Our short portfolio uses a barbell attack to harvester accepted basal shorts (over earners, structural declines, forensic accounting, fallen angels) pinch much fierce shorts (frauds, fades).

Our nonsubjective is to execute supra market, risk-adjusted returns complete nan people of a rhythm by capturing nan dispersed betwixt our agelong and short portfolios. With a little relationship to nan marketplace and economical cycles, we judge this offers america elasticity pinch nan portfolio’s exposures and nan expertise to usage leverage.

Generally, nan portfolio’s exposures will autumn wrong nan pursuing parameters. Net vulnerability betwixt 0% - 50%, pinch a emblematic vulnerability person to 15% - 20%, and gross exposures betwixt 180% - 250%. We position nett vulnerability connected a beta adjusted basis. We see a blend of nan institution circumstantial opportunity group and macroeconomic factors successful determining our exposures. For example, a robust opportunity set, pinch an abundance of charismatic short positions, allows america to trim nan portfolio’s nett vulnerability and summation our gross vulnerability (leverage) to seizure nan expected dispersed successful early stock value performances.

Market Outlook

Many judge nan “health” of nan American user whitethorn limit nan effect of an economical contraction. We hesitate to judge these arguments arsenic nan effect of ostentation has impacted those crossed each income levels. 1 successful 4 workers making complete $200k per twelvemonth opportunity they unrecorded paycheck to paycheck. The number is importantly higher for nan mean American. According to a study by Lending Club, nan fig is complete 60%.[12] Savings rates are down, prices person soared, and now plus prices person retraced.

In our 3rd 4th letter, we discussed nan likelihood of a 4th fourth marketplace rally fixed bearish positioning and a imaginable displacement backmost to dovish reside driven by slowing inflation. The October CPI study connected November 10th of 7.7% YoY / 0.4% MoM, each 20bps beneath expectations, resulted successful nan S&P 500 spiking 5.5% and nan Nasdaq gaining 7.4%. This was an astir 4.5 modular deviation move for some indexes.[13] According to Bloomberg, $225 cardinal of short positions were covered complete nan two-day rally.

At nan extremity of nan year, we saw a continued sell-off successful sectors exposed to taxation nonaccomplishment trading (i.e. technology) and flows into cyclical names. The comparative outperformance of cyclicals successful nan 4th quarter, going into a imaginable recession, provides a ripe hunting crushed for opportunities. We spot galore cyclicals pinch highest net trading astatine mid-cycle multiples.

Entering 2023, we proceed to spot nan aforesaid downside consequence to net successful nan arena of economical contraction. We judge nan attraction is shifting distant from ostentation to economical conditions and earnings. To update our study from our anterior letters, nan S&P 500 returned -18% and nan NASDAQ Composite declined -33% successful 2022. Since nan opening of nan year, statement estimates for nan S&P 500 Ex-Energy person declined -10% for 2023 and -10% for 2024. Current statement estimates connote a year-over-year summation of ~13% for 2023 and ~11% for 2024.

Past Peak to Trough Declines[14]

SPX Price


P/E Multiple

Dot-Com Bubble




Financial Crisis








Current (ex-Energy)15




Unsupported image type.

While nan power of macroeconomic factors and facet exposures continued to consequence successful precocious relationship betwixt securities successful nan marketplace during nan 4th quarter, our study shows nan level of this relationship has begun to travel down successful segments of nan market. As nan macro taxable continues to displacement from ostentation to recession and net travel into greater focus, we judge location should beryllium greater dispersion among stock prices. This gets america excited for basal banal picking successful 2023.

Increase successful Daily Correlation (Q4 vs Q3) Among Top Constitutes[15],[16]

Increase successful Daily Correlation (Q4 vs Q3) Among Top Constitutes

Portfolio Update

At nan extremity of nan quarter, our portfolio’s assemblage attraction represented: user (~40%), industrials (~40%), exertion (~10%), different (~10%).[17],[18] The Fund’s nett vulnerability continued to stay debased during nan 3rd quarter. Our gross vulnerability during nan 4th astatine ~160%, continued to stay little than our expected scope (180% - 250%). We scheme to proceed expanding our gross vulnerability arsenic nan opportunity group improves and correlations wrong factors proceed to decline.

Our agelong and short portfolios person different durations. The quality of holding agelong positions pinch a multi-year sky is nan imaginable for periodic periods of underperformance successful nan absence of a catalyst. This has been nan lawsuit for Perimeter Solutions, a important position successful nan money which knowledgeable an ~50% drawdown since we made our first investment. A successful short book helps alleviate nan detraction from wide money performance.

Portfolio Exposures[19][20]

Portfolio Exposures

Unsupported image type.

Select New Positions

Long: APi Group (APG)

APi Group is simply a occurrence information business that inspects, maintains, and repairs occurrence information systems. The installation and attraction of these systems are non-discretionary and are regulated by law. APi’s acquisition of Chubb’s occurrence and information business from Carrier Group provides further standard pinch its ample European footprint. There is simply a important opportunity for separator description arsenic guidance is focused connected improving Chubb’s margins to APi’s levels.

We judge institution guidance to beryllium conservative. The marketplace and sell-side analysts are underestimating nan existent normalized net powerfulness of APi’s business. We judge nan marketplace is excessively focused connected nan Company’s indebtedness load (3.5x EBITDA) which will beryllium continued to beryllium paid down complete clip to management’s target of nether 2.5x.

With a double-digit 2023 free rate travel output and azygous digit EBITDA multiple, we judge this business trades astatine a important discount to adjacent value. On a comparative basis, backstage marketplace transactions person seen valuations astir 20x EBITDA. We judge a mediate crushed is reasonable.

Long: Undisclosed Technology Spin-off

During nan 4th fourth we began to acquisition shares of a caller spin-off which we judge has important upside. New guidance has laid retired a elaborate scheme to move astir nan business and execute optimal levels of profitability. The business offers a comparatively sticky merchandise pinch debased turnover and precocious switching costs. We judge normalized net powerfulness from a successful turnaround reflects a existent P/E of 3x.

Long: Provention Bio (PRVB)

We accumulated a mini position successful Provention arsenic a consequence of its upcoming FDA support notification. We believed nan stock value was not factoring accusation disposable successful nan market. We published our findings successful a statement connected our website,, and Twitter.

As we expected, connected November 17th, Provention announced nan support for its Teplizumab drug.

We support a position successful Provention and judge nan Company is simply a apt acquisition target.

New Short: Undisclosed Short

This is 1 of our highest condemnation short positions. The Company is simply a misunderstood, profitless, Covid beneficiary which claims to beryllium revolutionizing its industry. Based connected our research, we judge it to beryllium a flawed business model, improbable to execute nan level of profitability nan marketplace is presently assuming.

On a per customer basis, nan Company’s valuation is 5-10x much costly than peers. While Wall Street continues to worth this business connected a gross multiple, we judge this to beryllium inappropriate arsenic nan Company uses a different gross nickname methodology than peers. Current guidance and Wall Street estimates are excessively precocious and presume unrealistic projections based connected inflated levels of profitability. Most misleading to investors is nan position of nan Company’s cardinal gross profit metric which we judge to beryllium overstated by astir 3x.

Update connected Select Positions

Long: Perimeter Solutions (PRM)

Perimeter is nan sole qualified supplier of aerial occurrence retardant for galore applications. This ngo captious merchandise represents a mini information of its customers’ spend, and gross is recurring successful quality arsenic semipermanent secular tailwinds (growth successful number and size of fires) support growth. Perimeter is led by what we see to beryllium an experienced, best-in-class, superior allocation focused guidance team.

Perimeter checks our boxes for an investment. It is simply a marketplace leader successful a increasing market, beardown rate travel procreation and return connected capital, talented guidance team, trading astatine an charismatic valuation.

On December 12th, Morgan Stanley published a statement from management’s roadworthy show:

“PRM's awesome competitory moat successful its halfway marketplace remains its top worth proposition — and nan top investor debate… Near term, it seems apt that Fortress (the imaginable entrant) will scope afloat qualification for usage by nan US Forest Service successful 2023. However, this will apt transportation much header than applicable risk. The existent constituent of contention is whether it is logistically businesslike for firefighting agencies to usage multiple, non-compatible fire-retardant solutions.”

Perimeter’s shares sold disconnected complete 10%. We work together that nan consequence is much successful nan header than consequence to nan underlying business and marketplace share.

We judge location are a fewer reasons nan banal continues to waste and acquisition wherever it does today:

1. Concern complete nan support of a imaginable competitor's merchandise for aerial use

The consequence of a competitor taking marketplace stock is unlikely. Perimeter is presently nan only supplier pinch USDA approval. While it is apt Fortress will beryllium approved successful nan near-term, Perimeter’s infrastructure and integration into nan proviso concatenation provides a lasting competitory advantage to thief support marketplace share. This, mixed pinch nan truth that Perimeter’s merchandise represents only ~3% of customers suppression spend, makes it challenging and improbable for Federal and State agencies to move providers.

2. Variability successful net arsenic a consequence of variety successful occurrence season

We understand occurrence seasons are not perfectly linear but nan wide inclination successful acres burned continues to support portion growth. We judge location was immoderate misunderstanding of nan occurrence suppression marketplace this year. This year’s occurrence play had a ample number of acres burned successful Alaska. Since occurrence retardants are not often utilized successful distant locations wherever nan occurrence is not a threat to humans aliases infrastructure, this did not supply support to Perimeters volumes.

3. Some investors are turned distant by unsocial compensation structure

In our view, if it’s a intelligibly defined scheme and you tin exemplary it out, you tin relationship for it going forward. We for illustration a guidance squad that is paid to execute and has tegument successful nan game.

Revenue should beryllium capable to compound astir 10% from a operation of accrued volumes and mid-single digit value increases. Volume maturation will beryllium fueled by continued increases successful acres burned, larger fires, and further stretched retired occurrence seasons. Outside of its North American Fire business, further maturation should travel from underpenetrated world markets and nan Specialty Products segment. International is presently astir 20% of revenues and gaining traction. The 2nd limb of Perimeter, which gets little attraction and represents 1/3rd of revenues, is Specialty Products which, arsenic of nan 3rd quarter, has grown year-over-year revenues 40% and has much than doubled EBITDA.

Based connected our 2023 projections, astatine nan existent stock value of astir $9, Perimeter is trading astir a 6% free rate travel yield. That is for a business pinch sizeable competitory advantages that should turn free rate travel per stock by complete 25% per twelvemonth for nan adjacent 2 years astatine least. This is simply a business mostly uncorrelated to economical cycles and we judge location is constricted downside to normalized earnings. We spot a way to adjacent $1 per stock of free rate travel by 2025.

Long: Verra Mobility (VRRM)

Verra Mobility is simply a leader successful proscription exertion and operates successful 3 segments: commercial, authorities and parking. The commercialized and authorities segments correspond 85%+ of revenues. Verra is an charismatic business pinch mid-to-high azygous digit gross maturation and sustainable competitory advantages.

Commercial services supply tolling services and usurpation guidance for commercialized fleets (i.e., rental cars). Verra is integrated pinch tolling authorities and has a gross divided pinch rental car operators. The business should use from 2 cardinal tailwinds including nan continued displacement from rate to cashless tolls and conversion of highways to toll roads. Currently ~65% of toll booths are cashless and that is expected to turn to complete 80% complete nan adjacent fewer years. Verra is highly integrated into nan rental car strategy pinch semipermanent contracts and exertion that would beryllium costly to replicate. The marketplace statement is Verra’s rental car business has recession consequence arsenic it is tied to recreation demand. In addition, location is commentary that ridesharing and autonomous driving is simply a consequence to terminal value. We position maturation of ridesharing and autonomous driving arsenic a affirmative semipermanent catalyst for nan fleet guidance business.

The Government conception offers solutions to cities and schoolhouse districts including red-light, velocity and autobus lane camera enforcement. Most of these relationships are gross shares and Verra maintains ownership of nan hardware/cameras. Future maturation will travel from expanding offerings to states pinch constricted existent enforcement (i.e., only person reddish ray cameras) and breaking into nan 17 states pinch nary photograph enforcement. While NYC is nan crown jewel, and take successful California, Florida and Connecticut would importantly move nan needle, nan value of fragmented relationships pinch smaller cities and municipalities is underappreciated. In a recession, authorities revenues should beryllium durable on pinch astir of Parking. Most authorities relationships are gross shares and Verra maintains ownership of nan hardware/cameras.

On November 2nd, Verra stock value had a antagonistic guidance to its 3rd 4th earnings, falling complete 15%. We judge location were precocious expectations arsenic a consequence of its beardown 2nd quarter, particularly for nan Commercial business. We identified 3 reasons for nan beardown 2nd 4th and weaker than expected 3rd quarter:

  • A ample magnitude of recreation request was pulled up to nan 2nd quarter, TSA Passenger

Volumes grew 26% from nan first to 2nd 4th and grew only 1% successful nan 3rd quarter.[21]

  • Hurricane Ian had an effect astatine nan extremity of nan 4th and opening of nan 4th fourth arsenic Florida did not complaint tolls for 18 days.
  • Rental car buying successful nan 2nd 4th typically results successful a beardown title registration business. The 2nd 4th of 2022 was exceptionally beardown arsenic rental car companies bought much aggressively than normal. This resulted successful a $3.5 cardinal Q-o-Q decline, erstwhile this typically represents a $1 cardinal headwind.

TSA information remained beardown successful nan 4th quarter, up ~14% year-over-year but an ~3% diminution from nan 3rd quarter. Based connected our projections for 2023, Verra trades astatine complete a 7.5% free rate travel yield.

Exited Short: Ranpak Holdings (PACK)

From our fund’s inception successful April 2022 to nan extremity of July, we were short Ranpak Holdings. We nary longer person a position. The position was 1 of our top contributors to capacity during

2022. In our Second Quarter missive we highlighted this “Industrial Short” arsenic “an business packaging business that has knowledgeable important tailwinds from maturation of e-commerce.” We would for illustration to item Ranpak arsenic an illustration of a anterior short position.

Ranpak is simply a 2019 vintage SPAC that manufactures machines and insubstantial products and sells them though a razor/razor leaf model. Think of nan insubstantial filler successful your Amazon packages. Ranpak would supply customers its machines for free aliases a mini costs and waste those customers its insubstantial products. In April 2022, nan Company had an ~$1.6 cardinal marketplace capitalization.

There were signals of marketplace stock declining arsenic maturation trailed e-commerce. Increased title from competitors entering insubstantial products (i.e., Sealed Air, SEE) and innovations specified arsenic right-sized-packaging. We judge guidance lacked assurance owed to an summation successful insider selling.

Consensus saw continued e-commerce tailwinds and partnerships pinch companies including Amazon would substance 10%+ integrated growth. In addition, Ranpak’s insubstantial products connection an advantage pinch ESG conscious customers compared to integrative bubble wrap alternative.

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We expected maturation to normalize backmost to mid-single digits arsenic covid e-commerce tailwinds lapped and transmission checks showed declining income pinch Amazon, its largest customer. Rising inventory levels and declining margins contempt nan maturation of e-commerce confirmed this thesis. On nan ESG front, our master calls uncovered shifts to “right-sized” packaging arsenic nan astir ESG friends solution.

Ranpak traded astatine complete 25x highest EBITDA, costly connected an absolute ground and much than 2x its closest, much diversified competitor Sealed Air. Ranpak’s GAAP adjacent group starring EBITDA separator of 31% was misleading owed to capitalizing of instrumentality costs. This resulted successful an ~10% benefits to reported EBITDA. Shortly aft going public, nan Company raised money astatine $5 per share, earlier seeing their stock value apical retired supra $40. We exited our position astir ~$5 per share.

Hidden Value Stocks Interview

In December, I was interviewed by Hidden Value Stocks, a spin-off newsletter from ValueWalk. I was nan first long/short money featured. We discussed Tourlite’s finance strategy and a fewer of our holdings. A transcript tin beryllium recovered connected nan documents conception of our website.

This puts an extremity to our rookie year. In Ty Cobb’s 1905 rookie campaign, his .238 mean sat adjacent nan mediate of nan battalion successful master baseball. The Hall of Famer’s profession .366 mean remains baseball’s all-time record. Like Cobb, we consciousness our first twelvemonth was a learning year, and we delivered coagulated results comparative to peers successful a challenging marketplace environment.

Thank you for your spot and support. Please consciousness free to scope retired to maine pinch immoderate questions.


Jeffrey G. Cherkin


This missive is being furnished by Tourlite Capital Management, LP (“Tourlite”) connected a confidential ground to recipient and does not represent an offer, inducement aliases proposal to waste aliases an connection to bargain immoderate securities, finance products aliases finance advisory services. Such an connection aliases inducement of an finance successful Tourlite Fund, LP (the “Fund”) whitethorn beryllium made only by transportation of nan Fund’s confidential offering documents that incorporate a explanation of nan worldly position relating to specified investment, of which this missive is not a part. The accusation and opinions expressed herein are provided for informational purposes only, are arsenic of nan day indicated, are summary successful nature, are not complete, are taxable to alteration and should not beryllium relied upon by immoderate personification successful making an finance decision. An finance successful nan Fund is speculative owed to a assortment of risks and considerations arsenic are elaborate successful nan confidential offering documents of nan Fund, and this missive is qualified successful their entirety by nan much complete accusation contained therein.

This missive is strictly confidential, and nan accusation contained herein aliases provided herewith whitethorn not beryllium disclosed aliases distributed by nan recipient to immoderate different personification (other than nan recipient’s affiliates, partners, members, directors, officers, labor and advisors and different agents who person a morganatic request for specified accusation successful relationship pinch evaluating nan recipient’s investment). Your receipt and reappraisal of this missive constitutes your statement to comply pinch these provisions.

An finance successful nan Fund involves a important grade of risk, and location tin beryllium nary assurance that its finance objectives will beryllium achieved aliases that its investments will beryllium profitable. This missive contains various estimates, targets and projections that are based upon various assumptions made arsenic of nan day specified estimates, targets aliases projections were developed. Actual realized returns connected unrealized investments and proceeds will dangle upon various factors including, but not constricted to, early operating results, nan worth of nan assets and marketplace conditions astatine nan clip of immoderate disposition, immoderate related transaction, operational and different costs and nan timing and mode of sale. While estimates, targets and projections provided herein are believed to beryllium reasonable approximations based upon disposable accusation disposable to Tourlite arsenic of nan day of this letter, nary guarantee aliases assurance tin beryllium provided arsenic to their accuracy aliases that specified estimates, targets aliases projections will beryllium achieved aliases met. Unless different noted, nan capacity results of nan Fund included successful this missive are presented connected a net-of-fees ground and bespeak nan conclusion of, among different things, underlying guidance and capacity fees and expenses arsenic good arsenic brokerage and/or custodial fees and expenses. Performance results besides see nan reinvestment of dividends and different earnings. Certain of nan capacity accusation presented successful this missive are unaudited estimates based upon nan accusation disposable to Tourlite arsenic of nan day hereof, and are taxable to consequent revision arsenic a consequence of nan Fund’s audit. An investor’s existent capacity and existent fees whitethorn disagree from nan capacity accusation shown owed to, among different factors, superior contributions, withdrawals and eligibility to participate successful “new issues.” The worth of investments tin spell down arsenic good arsenic up. Past capacity is not needfully an denotation of early capacity aliases profitability.

References to Dow Jones, S&P 500, NASDAQ, Bloomberg and different indices herein are for informational and wide comparative purposes only. There are important differences betwixt specified indices and nan finance programme of nan Fund. The Fund does not put successful each aliases needfully immoderate important information of nan securities, industries aliases strategies represented by specified indices. References to indices do not propose that nan Fund will, aliases is apt to, execute returns, volatility aliases different results akin to specified indices.

Certain accusation group distant successful this missive is based upon accusation obtained from various 3rd parties believed by Tourlite to beryllium reliable. Neither Tourlite nor immoderate of its affiliates has independently verified immoderate specified accusation and they shall not person immoderate liability associated pinch nan inaccuracy aliases inadequacy thereof.

This missive and nan accompanying chat see forward-looking statements. All statements that are not humanities facts are forward-looking statements, including immoderate statements that subordinate to early marketplace conditions, results, operations, strategies aliases different early conditions aliases developments and immoderate statements regarding objectives, opportunities, positioning aliases prospects. Forward-looking statements are needfully based upon speculation, expectations, estimates and assumptions that are inherently unreliable and taxable to important business, economical and competitory uncertainties and contingencies. Forward-looking statements are not a committedness aliases guaranty astir early events.

The accusation successful this missive is not intended to provide, and should not beryllium relied upon for, accounting, legal, aliases taxation proposal aliases finance recommendations. Each recipient should consult its ain tax, legal, accounting, financial, aliases different advisors astir nan issues discussed herein.


1 Any nett returns presented herein bespeak nan returns of nan Fund assuming an investor “since inception”, pinch nary consequent superior contributions aliases withdrawals. These returns are not needfully suggestive of your nett returns successful nan Fund, and you should follow-up pinch Tourlite if you person immoderate questions astir nan returns presented herein

2 Bloomberg Total Return

Approximate vulnerability based connected portfolio building astatine opening of January 2023

Beta-adjusted exposures are calculated comparative to nan S&P 500 based connected six-months of humanities regular returns

5 Index/hedges includes scale options

6 Event driven/special business investments, equity options. Dollar vulnerability represents gross and beta represents net

7 Other includes rate hedges and different trading costs. Borrow costs included successful short return

8 Performance of short portfolio is comparative to nan inverse of selected Index

9 HFRI EH Equity Market Neutral Index. Beta comparative to S&P 500 = 0.06

10 HFRI Equity Hedge (Total) Index. Beta comparative to S&P 500 = 0.46

11 Details connected exited Ranpak position highlighted successful Portfolio Update section

12 Sources: MarketWatch, Nov. 19, 2022,Fortune, June 2, 2022

13 Based connected returns since 2000. Data from Bloomberg HRH function

14 Bloomberg data. Trailing EPS isolated from for existent play 15 S&P 500 Ex-Energy

15 Tourlite analysis. We utilized nan aforesaid information group of companies (top 5 companies connected cardinal “Factors to Watch” connected Bloomberg and nan holdings of nan ARK Innovation ETF (ARKK)) arsenic our anterior letters to support consistency.

16 Growth = 5-year existent income growth. Value = PORT US Value. Volatility = 3 Month Volatility. Momentum = PORT US Momentum

17 Industry gross exposure

18 Other sectors correspond healthcare and existent estate

19 Approximate vulnerability based connected portfolio building astatine opening of January 2023

20 Beta-adjusted exposures are calculated comparative to nan S&P 500 based connected six-months of humanities regular returns

21 TSA Checkpoint Passenger Volumes (

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