11/05/24

On November 1st Long Point Investors made a new investment with Ravenswood Investment Company, L.P., a hedge fund managed by Robert Robotti.

Bob is a classic old school stock picker. He has been and will always be, a self-proclaimed, “unabashed value investor.” Bob was trained by the elder statesmen of value investing at Tweedy Browne and Gabelli and Company. Robotti and Ravenswood have an impressive track record. Ravenswood has compounded client capital at 13% a year for 40 years, handily outperforming the S&P 500 over that same period.

While Robotti’s track record, commitment to fundamental research and value discipline all align with Long Point’s investment philosophy, we did not hire Bob for what he has done in the past, but for what we believe he will do going forward.

With a deep understanding of energy, materials and other cyclical businesses, we believe Robotti’s expertise puts him in the center of where the action will be over the next decade.

Ravenswood’s current investments are focused on the following core themes:

• Homebuilding distributors, post Great Financial Crisis and current American housing shortage.

• Offshore energy, engineering and service companies

• Increasing appetite for metals and materials serving the energy transition and Globalization 2.0

• Low-cost energy advantage driving a North American industrial renaissance.

Like other Long Point managers Ravenswood employs a long-term approach, relying on deep in-house research. They have adhered to a consistent philosophy for decades and have cumulative knowledge and a deep network giving them an informational and analytical edge. However, a more important edge is behavioral, the ability to tolerate volatility. That edge comes from having a long-term approach and patient temperament.

Long Point made an initial investment in Ravenswood on November 1st. We anticipate adding additional capital to Ravenswood as we receive funds from our ADW redemption in early 2025. 

We often talk about taking comfort from having an experienced captain navigating the helm, especially during turbulent markets. We believe Bob Robotti epitomizes this notion. We anticipate Ravenswood becoming a core manager allocation within Long Point Managed Series in due course.

If you would like to add capital to your Long Point Investors Managed Series investment and/or discuss your current investment, please call us*.

For those interested in podcasts, this interview from this summer was quite interesting.

The Investors Podcast: We Study Billionaires

Thank you for your continued confidence and trust.

Sincerely,

MAD RIVER INVESTORS, General Partner

Rick Silver and Josh Stewart

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