Steamboat Capital generated a gross return of 4.21% and a net return of 2.97% for the third quarter. Meanwhile, the S&P 500 gained 5.9%, the Russell 2000 was up 9.3%, and the Credit Suisse Hedge Fund Index rose 2% for the quarter.
Year to date, Steamboat is up 20.3%, while the S&P has gained 22.1%. The Russell 2000 is up 11.2% for the year, and the Credit Suisse Hedge Fund Index gained 9% year to date. Since its inception, Steamboat has gained 210%, versus 432.5% for the S&P 500, 229.6% for the Russell 2000, and 84.1% for the Credit Suisse index.
On an annualized basis, Steamboat returned 9.7% over that timeframe, compared to annualized returns of 14.6% for the S&P, 10.2% for the Russell, and 5.1% for the Credit Suisse Hedge Fund Index.
Steamboat Capital’s 13F
At the end of the third quarter, Alphabet remained Steamboat's largest position at 7.4% of the portfolio, although the firm did sell about 15,000 shares during the quarter.
The fund's other top positions in order of size by market value include Weatherford, Meta Platforms, ACM Research, Apollo Global, Broadcom, Tenet Healthcare, Dell Technologies, CompoSecure, and Halozyme Therapeutics. Steamboat also trimmed its positions in Weatherford, Meta, ACM Research, Broadcom, Tenet Healthcare, and Dell, while adding to its stakes in Apollo Global, CompoSecure, and Halozyme.
Steamboat exited five stocks during the quarter: Hippo Holdings, CPI Card Group, James River Group Holdings, TFI International, and ModivCare. The firm's top purchases include Micron, Aercap Holdings, ContextLogic, CRH and Halozyme.
Top and bottom performers
In Q3, Steamboat's biggest contributors were CompoSecure, Tenet Healthcare, M/I Homes, Meta Platforms and Taylor Morrison Homes. The firm maintained stakes in all those companies at the end of the quarter.
On the other hand, the biggest detractors were Weatherford, Alphabet, Dell Technologies, Micron Technology and ACM Research, all of which also remain in Steamboat's portfolio.
In his third-quarter letter to investors, which was obtained by Hedge Fund Alpha, Parsa Kiai said he continues to like all of these companies
