Choice Equities Fund Up 76 Percent In 2020 – ValueWalk Premium
Choice Equities Fund

Choice Equities Fund Up 76 Percent In 2020

Choice Equities Fund perofrmance update for the month ended December 2020.

Q3 2020 hedge fund letters, conferences and more

Choice Equities Fund generated a net return of 76.3% for 2020 resulting in annualized returns of 25.7% per year since inception of January 2017.

Choice Equities Fund

Choice Equities Fund, LP Overview

Choice Equities Fund (“ or the “ is an investment partnership that seeks to generate market beating returns over any rolling multiyear investment period while minimizing the risk of permanent impairment of capital The fund invests through a concentrated portfolio of primarily small cap US equities and targets a tight alignment of investor and manager interests through significant manager co investment and a well aligned fee structure CEF began operating as an independent and standalone vehicle on January 1 st 2017 with 1 1 M AUM.

CECM Investment Philosophy

Choice Equities Capital Management (“CECM” or the “Manager”) is a value-focused boutique hedge fund manager focused on compounding capital safely for the long term. The CECM investment approach emphasizes exhaustive due diligence and primary research with an eye towards multi-year investment horizons. We take meaningful positions in our best ideas and believe our mindset resembles that of an opportunistic businessperson’s. We typically focus our efforts on the small cap space because we believe that is where greater price / value discrepancies can be found.

Portfolio Construction

CEF employs a concentrated portfolio which typically consists of 10 – 15 equity longs and targets opportunistic company-specific shorts for absolute profits only. The fund may use options and index or industry-specific ETF hedges primarily in efforts to protect capital. The fund typically targets net exposures that range from 60% – 90%.

We seek to invest with quality management teams in businesses with durable moats and reasonably forecastable expected future cash flows. We are generalists with a focus on the consumer, media, technology and industrial verticals.

Core Longs: 10 – 15 Positions

  • Sized at 5% – 15%
  • Two to three year target investment horizons Special Situations: 0 – 5 Positions
  • Sized at 1% – 10%
  • Six to 18 month target investment horizons Shorts: 0 – 10 Positions
  • Sized at 1% – 3%

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