Joe Altman & Chris Kyriopoulos, COMPOUND Capital: To Infinity…And Beyond! from the 9th Annual Value Investing Congress.
Joe Altman is a Co-Founder & Principal of COMPOUND Capital Management, a Nashville-based, value-focused fund. COMPOUND’s objective is long-term capital appreciation while limiting the risk of permanent capital loss. Prior to starting COMPOUND in 2008, Altman was PM for a family office, which invested in both public and private companies.
Chris Kyriopoulos is a Co-Founder & Principal of COMPOUND Capital Management. Prior to starting COMPOUND, Kyriopoulos was a Partner at Clayton Associates, a fund, which invests in private companies. He is a graduate of the University of Virginia.
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Joe Altman & Chris Kyriopoulos live coverage
L/S hedge fund out of Nashville, with $42M in assets. They are able to think more clearly and slowly in Nashville vs New York.
Laying out 2 investment ideas (look for stocks that are under-followed or may have a misleading name)
Ascent Capital Group Inc (NYSE:ASCMA)–Monitronics is an alarm company
John Malone owns the majority of the B shares
$2.5B enterprise value
High debt, but very high free cash flow. Asset light model and acquirer of alarm contracts.
38% steady state net operating flow margins (SSNOCF)
Generally trade in the 10-14% range. ADT trades at 12x EV/SSNOCF, while ASCMA trades at 9.7x
Price target: $125 (they will own until the equity is taken from them, ie bought out….maybe by John Malone)
(4:58pm EST) –Next Idea
Covanta Holdings (NYSE:CVA) –controls 2/3rd of US waste to energy disposal
$4.8B enterprise value
Sam Zell is the chairman and largest holder.
Disclosure: Kirr Marbach is a large shareholder of ASCMA. We may trade in and out of ASCMA without further acknowledgement. This is not Kirr Marbach’s opinion.
ValueWalk readers can get a 53% discount on the Value Investing Congress in Vegas (April 3rd and 4th), just use this link to register.
Use code ‘WALK’ to save an extra $100.