Black Bear Value Fund’s performance update for the month ended May 31, 2025.
Dear Partners and Friends,
- Black Bear Value Fund returned -6.3%, net, in May and is -7.8% QTD and -9.0% YTD.
- The HFRI Value Index returned +4.2% in May and is +4.4% QTD and +3.8% YTD.
- The S&P 500 returned +6.3% in May and is +5.6% QTD and +1.1% YTD.
Please note returns could vary depending on your time of investment.
As discussed in our previous update, our short exposure was a significant negative contributor to our porfolio performance in both April and May. Sentiment is shifting dramatically from headline to headline with many of our shorts experiencing dramatic increases in price. I acknowledge it's unpleasent to receive an update with such lousy numbers, but I view this as temporary as the reality of a slowing economy, increasing prices and overall expensive valuations begins to set in.
I plan on writing a more detailed Q2 letter describing our core investments and provide an update on the underlying business' performance. I am generally pleased with the business performances of the Companies we own and in several cases the management teams are buying back cheap stock which will benefit us in the future.
Our returns can be quite lumpy and while these kinds of updates aren't fun to receive (or write), these are generally the most fruitful times to be investing.
Thank you for your trust and support,
Adam
Black Bear Value Fund
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