Is This Low-Liquidity Stock Worth Considering? These Emerging Managers Are Bullish

Trading low-liquidity stocks can be quite risky because it can be a challenge to get rid of the shares if they don’t perform well. However, in the case of ENDI Corp., holding onto the shares has turned out to be a great move for at least three hedge funds.

Shares of ENDI Corp. (OTCMKTS:ENDI), previously known as Enterprise Diversified and, before that, SiteStar, have put up some explosive growth over the last year, surging 70% year to date as of Sept. 8 and more than doubling over the past year.

History of ENDI Corp.

For those who have invested in or followed ENDI Corp. over the last several years, it’s been a wild ride — one that multiple hedge fund managers agree has only served to improve this company. Tim Eriksen of Cedar Creek Partners shared the company’s history in his Q1 2024 letter to investors.

Nearly a decade ago, private investor Jeff Moore and Arquitos Capital’s Steven Kiel took the company over. ENDI Corp. then invested in Dave Waters’ Alluvial Fund — and then trouble emerged. The company’s investment in an HVAC company in Arizona ended up being a horrendous failure. Then its real estate investment, Mt. Melrose, executed poorly, pouring out capital to purchase more homes than it could rehab and market in a reasonable amount of time. The company was sold eventually.