[klarman]
Friends of our from Buckley Capital have put together the attached presentation on Radiant Logistic. There will be a webcast as well on Monday, February 1stfrom 11:00am – 12:00pm EST:
Radiant Logistics Analysis Webinar
Monday, February 1, 2016 – 11:00 AM – 12:00 AM EST
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Please join my meeting from your computer, tablet, or smartphone:
https://global.gotomeeting.com/join/588438701
You can also dial in using your phone.
Canada (Toll-free): 1-877-777-3281
Canada: +1(647)497-9380
USA (Toll-free): 1-877-309-2070
United States (Long Distance): +1(312) 757-3119
Access Code: 588-438-701
Background
- Introduction
-- Buckley Capital Management, LLC (BCM) is a long-biased, deep value-oriented equity fund focused on businesses with consistent long term growth, founded in Jan. 2011
-- BCM’s objective is first and foremost the preservation of capital, while also producing above-average returns through conservative/heavily discounted equity investing with an open mandate to allow us to exploit market inefficiencies in any industry or market capitalization
-- BCM manages a limited partnership and separately managed accounts - Investment Philosophy Overview
-- Buckley Capital Partners, LP is a long biased, value and special situation focused long biased equity fund
-- BCP’s discipline is to only invest in situations with asymmetric risk-reward return characteristics
-- The fund employs a fundamental approach that is research intensive and concentrated, focused primarily in small cap equities- Extensive due diligence and bottom-up research into every investment with periodic physical visits and close links with management
- Evaluate an investment idea as if buying the entire company, with a focus on buying with a large margin of safety
Investment Philosophy
- Core Strategy
-- Focus on transparent, predictable, underfollowed companies at very attractive valuations such as:- Owner-operator managers where the CEO is the founder and has the majority of his net worth in the business, thus properly incentivizing him
- Businesses with a long term track record of compounding at a high growth rate
- Invest in businesses that are only a small portion of their tangible addressable market (TAM) but could expand to a much larger portion of their market over time, providing a long runway for growth
- High barriers to entry and high returns on equity, with the ability to profitably reinvest capital
-- Limited dependence on debt financing
-- Free optionality from hidden assets
Investment Criteria
- Conviction comes from a profound understanding of the management team’s incentives and capabilities which is reinforced by frequent physical visits
- Margin of safety: prefer great investments that are simple and transparent
- Limited downside supported by high quality businesses with consistent, predictable cash flow generation and manageable debt
-- Cash and securities on balance sheet
-- Hidden tangible assets (e.g. stakes in other businesses/real estate)
-- High free cash flow yield - Rapid growth in the intrinsic value of the underlying business
- Negative sentiment and/or short-term events can cause a fundamental disconnect between price and value
- Conviction is essential. Should be compelled to buy more if the stock price fell with no change in the business fundamentals
Risk Management
- Wealth Preserving Portfolio Construction
-- Little to no leverage
-- Invest in easy to understand, transparent businesses at great prices
-- Invest in companies: view investments as owning entire companies, not speculating on stock prices
-- Focus on asymmetries of returns: look for ‘fat pitch’ situations where probability-weighted risk-reward is heavily in our favor
-- Concentration: ideally comprised of 10-15 core long positions
-- Constantly reevaluate every investment: mistakes are inevitable, realizing them quickly and remaining emotionally unattached to securities is extremely important in protecting against capital loss
See full slides below.
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