Yost Partners and Yost Focused Long funds returned -1.0% and +5.4% net, respectively, versus the MSCI World Index return of +7.7% for the first quarter of 2023.
The firm's Q1 investor update, which ValueWalk has been able to review, focuses on Yost's Talen Energy trade. During the month of April, the fund launched a special purpose vehicle (Yost SPV, I) to participate in the restructuring of a set of power generation assets owned by Talen Energy.
The letter explained the Talen opportunity has exciting risk asymmetry thanks to a complex restructuring process. When the company emerges from bankruptcy, it will be worth around $4.5 billion. However, Yoast's analysts believe the group's assets alone are worth $6 billion to $6.5 billion.
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