TMR Capital commentary for the month ended April 30, 2025.
Dear Partners and Friends:
Regarding the SPV, we have signed a term sheet to acquire the Nasdaq company alluded to in the previous email and just had our kickoff call tonight. In the next two months, we expect to complete the transaction and launch our fintech/financial engineering play in the public markets.
Our PIPE will be done at 1.1x NAV and we expect to immediately trade at least in line with peers trading at 5-10x NAV. There is no lockup for investors.
Recent comparable deals done at 1.1x NAV have seen the target stock price increase 5-10x in one week, and in the most recent transaction, the stock of the target increased by over 30x in one week.
We're partnered with three other co-founders, two of which have previously started billion dollar+ startups and seeded a similar fintech/financial engineering play in Japan which went from $10M market cap to over $5B market cap in 18 months.
Turning to the fund, our latest FactSheet is attached for our Long Only and Long/Short funds.
Since inception in 2019, we have substantially outperformed our benchmark, the Russell 2000, as well as other popular indexes like the S&P 500. We have also never had a down year.
As of today, we are up c.10% ytd.
We view the overall stock market as expensive and unattractive, though there are still a small amount of cheap stocks with strong idiosyncratic stories.
As far as we can tell, the main source of alpha on the long side will come from liquid "insider deals" where there is an instant and very large arbitrage between the PIPE valuation and where comps trade. We're excited to be leading what we expect will be the largest transaction in its category and will be the first company of its kind on the Nasdaq.
The way to access this deal and future insider deals is through my fund or SPV.
Theodore Rosenthal
Founder, CIO
TMR Capital
TMR Long Short Opportunities Monthly Net Returns
TMR Partners Long Only Monthly Net Returns
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