Dichotomy Capital was up 16.4% net for 2019, underperforming the S&P 500, which gained more than 30%. The fund had rather limited exposure to tech and financial stocks, which is why it lagged the index in 2019, according to Managing Member Ian Clark.
Green shoots already in 2020
In his 2019 annual letter to investors, which was reviewed by ValueWalk, Clark said this year revealed fewer "obvious" long positions than the beginning of last year, but a number of positions that weighed on the fund's results in 2019 have started 2020 much better.
One example is Polaris Infrastructure, which detracted from Dichotomy's results during the second half of 2019. Clark said investors worried about construction delays in the company's hydroelectric assets. However, he...
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