Curreen Capital’s Top 5% Positions: Where I Find the Most Value

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The following excerpt was taken from this fund letter.

Curreen Capital: All positions exceeding 5% of the fund

Advantage Solutions (ADV)

Advantage Solutions partners with brands and stores to sell products through stores. The company is one of the largest managers of in-store tasting programs in the U.S. (for example, would you like to try this new brand: cheese/chips/dip/etc.) Advantage Solutions is a SPAC merger completed in October 2020. Advantage Solutions is a low-capitalization company with high returns on capital. It has significant debt, although this debt does not have onerous covenants and is not due for several years. Advantage Solutions is using its free cash flow to pay down debt and acquire smaller competitors. The company currently trades at an attractive P/L ratio.

Credit Acceptance (CACC)

Credit acceptance is subprime auto lender that enables subprime borrowers to buy vehicles from used car dealers. The company has been profitably gaining share in a large and difficult market for more than two decades. Management uses free cash flow to grow the company and buy back shares at attractive prices. Credit Acceptance currently trades at an attractive upside-to-downside ratio.

To live (EHAB)

Enhabit provides home health and hospice care services. The company serves patients covered by Medicare, Medicare Advantage, private insurance, and Medicaid, with reimbursement rates decreasing in that order, from higher Medicare-paid levels to lower Medicaid-paid levels. Enhabit was spun off from Encompass Health in July 2022. The company has historically delivered high returns on capital and has grown both organically and through acquisition. The company has struggled since the spun off, with declining revenues and higher costs, prompting it to repeatedly seek relief from its lenders. Enhabit currently trades at an attractive upside-to-downside ratio.

Front Door (FTDR)

Frontdoor sells home service plans to homeowners. The company contracts with HVAC and other contractors and sends them out when customers have problems with one of the home’s major appliances and systems (furnace, air conditioning, refrigerator, electrical system, etc.). Frontdoor spun out of ServiceMaster in October 2018. Frontdoor services about 2% of U.S. homes and has used its free cash flow to grow organically, pay down debt, buy back stock, and most recently, launch an app that connects service experts with customers via video chat. Frontdoor currently trades at an attractive upside-to-downside ratio.

Get Busy (OTCPK:GETBF)

GetBusy offers online document exchange systems – primarily for accountants. GetBusy was spun off from Reckon in August 2017 and has continued to grow since then. GetBusy does not make money by investing through higher expenses in developing existing businesses and trying to introduce new products. The core businesses are profitable and sustainable in the UK and the US

Nilörn Group (NILB:SS)

Nilorn designs and supplies labels and tags for European clothing brands. The company combines just-in-time delivery with high-quality design that can increase the value of the customer’s products in the eyes of the end consumer. Management uses the free cash flow to grow the company and pay the dividend. The company’s return on equity is around 30%. Nilorn currently trades at an attractive upside to downside ratio.

VF Corp (VFC)

VF Corp. operates apparel brands including Dickies, The North Face, Supreme, Timberland, and Vans. Under the previous CEO, the company’s poor capital allocation (including overpaying for Supreme and maintaining an excessively high dividend after the Kontoor spinoff) forced the company to halt its model of using excess free cash flow to acquire and manage good brands. The company has now cut its dividend (twice) to a reasonable level and hired a new CEO who has a track record of successfully turning around companies. I believe the company has good brands, the ability to manage them well, and a management team that is righting the ship. VF Corp. currently trades at an attractive upside to downside ratio.

RESERVATION

The information contained herein relating to Curreen Capital Partners, LP (the “Fund”) is confidential and proprietary and is intended solely for the recipient’s use. The information and opinions expressed herein are current only as of the date of this material, are not complete, are subject to change without notice and do not contain material information about the Fund, including details regarding an investment in the Fund and related important risk disclosures. This document is not intended to be, and should not be construed or used as, an offer to sell or the solicitation of an offer to buy any interests in the Fund. If any offer is made, it will be pursuant to a final Private Placement Memorandum executed by or on behalf of the Fund, which contains detailed information regarding the terms of the investment and the risks, charges and expenses of an investment in the Fund.

An investment in the Fund is speculative and may involve significant investment and other risks. Such risks may include, without limitation, the risk of adverse or unforeseen market events, the risk of counterparty or issuer default, and liquidity risk. The Fund’s performance may be volatile. No representation is made that the risk management process or investment objectives of the General Partner or the Fund will be or are likely to be achieved or successful, or that the Fund or any investment will be profitable or will not incur losses.

Unless otherwise stated, the performance information contained herein is for the Fund and is net of an annual asset management fee of 1.50% and an annual profit-based performance allocation of 20%. As with any hedge fund, the Fund’s past performance is not indicative of future performance. The actual returns for each investor in the Fund may vary based on the timing of their investment. The 2013-2023 returns are based on audited financial statements, and the 2024 performance information contained herein has not yet been independently audited or verified. Although the data contained herein has been prepared based on information that Curreen Capital GP, LLC, the Fund’s general partner (the “General Partner”) believes to be reliable, the General Partner does not guarantee the accuracy or completeness of such information.

Editor’s Note: The summary for this article was selected by Seeking Alpha editors.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.