Hi all – welcome to Raper Capital and thank you for reading. My name is Jeremy Raper (hence the unfortunately-titled name of this blog), and I run a small long/short equity portfolio from Singapore. I grew up in Australia, went to college in the US, and have since lived in Japan as well, working both at buy-side and sell-side firms for 6-7 years before striking out on my own over the past year or so.
Since starting to actively manage my own money full-time, I have also developed an interest in financial writing and sharing my thoughts on companies on the internet – both to force me to cogently and coherently outline my investment views as well as to solicit feedback from other investors. So, for more formal investment theses/company analysis, please follow me on Seeking Alpha at the following link: http://seekingalpha.com/author/jeremy-raper
The purpose of this blog is slightly different: I am starting it at the urging of some friend and former colleagues, who I guess are interested in reading my views on a wide miscellanea of finance-related topics. As such, posts will be sporadic and potentially rambling, but hopefully of some interest to those who follow financial markets.
Feedback – positive or negative, just not personal – is always welcome, so feel free to comment away and suggest this to interested friends 🙂
Thanks for reading!
Jeremy:
I enjoyed your AER analysis on SA. It is our largest holding in KCM Global Alpha, though we own it in low $40’s. Jan/Feb were heart-stopping. We just find it remarkable that a fairly simple, well-run business has experienced a 40%+ peak/trough/back drawdown over 4 months.
We still like it.
Hi Matt – thanks for commenting. Glad you liked the piece. I agree – the volatility of the equity relative to the underlying business (and indeed how the credit has traded) has been fairly mind-blowing. Like you I am maintaining my (substantial) long position. Agree that a business of this quality and consistency should not trade at a discount to book, nor at ~6x EPS. I still envisage $50+ by year end and a solid multi-year mid double-digit IRR from here given the pace of book appreciation, organic growth from the order book, incremental EPS growth from repurchases, and – hopefully – a couple of turns of EPS multiple expansion given excellent multi-year execution.