For the first half of 2025, Khrom Capital returned 3% net. Since its inception 17 years ago, the fund has gained a cumulative 2,216% gross and 1,067% net, versus 550% for the S&P 500 Total Return index and 250% for the Russell 2000 Value Total Return Index.
Since inception, Khrom Capital has enjoyed an annualized net return of 15.2% and gross return of 19.9%, versus 11.4% for the S&P 500 and 7.5% for the Russell 2000 Value Index.
Khrom Capital focuses on small and mid-cap value names in North America, utilizing a value investing approach to select 12 to 15 high-conviction names. The firm targets durable, growing businesses at times of significant declines in their valuations. Khrom estimates the valuations of companies by looking at the present value of their future cash flows.
Also see: HCI Boosts Khrom Capital To 12% YTD; 20% CAGR Returns Since 2008
Top performers and detractors
During the first half of the year, four holdings each added over 100 basis points to Khrom Capital’s performance. HCI Group Inc (NYSE:HCI) added 377, Tenet Healthcare Corp (NYSE:THC) added 345, Synchrony Financial (NYSE:SYF) added 207, and TD Synnex Corp (NYSE:SNX) added 128.
On the other hand, Acadia Healthcare subtracted 314 basis points, while LGI Homes Inc (NASDAQ:LGIH) subtracted 304, Signet Jewelers Ltd (NYSE:SIG) subtracted 139, and Chemours Co (NYSE:CC) subtracted 115.
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