HCI Boosts Khrom Capital To 12% YTD; 20% CAGR Returns Since 2008

Eric Khrom's Khrom Capital returned 12% net for the second quarter, bringing its year-to-date return to 3% net. Since the fund’s inception 17 years ago, it has returned 2,216% gross and 1,067% net, versus 550% for the S&P 500 and 250% for the Russell 2000 Value index. The annualized return since inception us 19.9% gross and 15.2% net, versus 11.4% for the S&P and 7.5% for the Russell 2000 Value. The hedge fund now has $891 billion, according to a Q2 investor presentation reviewed by Hedge Fund Alpha.

Khrom Capital’s portfolio construction

Khrom Capital’s strategy is long only with 12 to 15 core investments, a weighted average market cap of $9.9 billion, and a 6.7% average position size. The firm is sector agnostic, utilizing value-oriented stock picking with a concentrated portfolio focused on North America.