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Friends of our from Buckley Capital have put together the attached presentation on Radiant Logistic. There will be a webcast as well on Monday, February 1stfrom 11:00am – 12:00pm EST:

 

Radiant Logistics Analysis Webinar

Monday, February 1, 201611:00 AM – 12:00 AM EST

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Please join my meeting from your computer, tablet, or smartphone:

https://global.gotomeeting.com/join/588438701

 

You can also dial in using your phone.

Canada (Toll-free): 1-877-777-3281

Canada: +1(647)497-9380

 

USA (Toll-free): 1-877-309-2070

United States (Long Distance): +1(312) 757-3119

 

Access Code: 588-438-701

Background

  • Introduction

    -- Buckley Capital Management, LLC (BCM) is a long-biased, deep value-oriented equity fund focused on businesses with consistent long term growth, founded in Jan. 2011

    -- BCM’s objective is first and foremost the preservation of capital, while also producing above-average returns through conservative/heavily discounted equity investing with an open mandate to allow us to exploit market inefficiencies in any industry or market capitalization

    -- BCM manages a limited partnership and separately managed accounts

  • Investment Philosophy Overview

    -- Buckley Capital Partners, LP is a long biased, value and special situation focused long biased equity fund

    -- BCP’s discipline is to only invest in situations with asymmetric risk-reward return characteristics

    -- The fund employs a fundamental approach that is research intensive and concentrated, focused primarily in small cap equities

    • Extensive due diligence and bottom-up research into every investment with periodic physical visits and close links with management
    • Evaluate an investment idea as if buying the entire company, with a focus on buying with a large margin of safety

Investment Philosophy

  • Core Strategy

    -- Focus on transparent, predictable, underfollowed companies at very attractive valuations such as:

    • Owner-operator managers where the CEO is the founder and has the majority of his net worth in the business, thus properly incentivizing him
    • Businesses with a long term track record of compounding at a high growth rate
    • Invest in businesses that are only a small portion of their tangible addressable market (TAM) but could expand to a much larger portion of their market over time, providing a long runway for growth
    • High barriers to entry and high returns on equity, with the ability to profitably reinvest capital

      -- Limited dependence on debt financing

      -- Free optionality from hidden assets

Investment Criteria

  • Conviction comes from a profound understanding of the management team’s incentives and capabilities which is reinforced by frequent physical visits
  • Margin of safety: prefer great investments that are simple and transparent
  • Limited downside supported by high quality businesses with consistent, predictable cash flow generation and manageable debt

    -- Cash and securities on balance sheet

    -- Hidden tangible assets (e.g. stakes in other businesses/real estate)

    -- High free cash flow yield

  • Rapid growth in the intrinsic value of the underlying business
  • Negative sentiment and/or short-term events can cause a fundamental disconnect between price and value
  • Conviction is essential. Should be compelled to buy more if the stock price fell with no change in the business fundamentals

Risk Management

  • Wealth Preserving Portfolio Construction

    -- Little to no leverage

    -- Invest in easy to understand, transparent businesses at great prices

    -- Invest in companies: view investments as owning entire companies, not speculating on stock prices

    -- Focus on asymmetries of returns: look for ‘fat pitch’ situations where probability-weighted risk-reward is heavily in our favor

    -- Concentration: ideally comprised of 10-15 core long positions

    -- Constantly reevaluate every investment: mistakes are inevitable, realizing them quickly and remaining emotionally unattached to securities is extremely important in protecting against capital loss

Radiant Logistics

Radiant Logistics

Radiant Logistics

See full slides below.

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