Meson Capital lp 2017 Q2 Partnership Letter

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A Challenging Market Environment for Long-Only Stock Pickers, Better than Ever for Entrepreneurs:
The current environment of high valuations and rapid technology change should provide tailwinds for both sides of our strategy. On the long side, it has never been better to be an entrepreneurial business builder. Cost of growth capital is as low as any point in history and the amplification effects of technology make human willpower and intelligence more economically potent than ever. On the short side – increased competition and technological disruption is making the lifecycle of poorly run companies shorter than ever. The inflated valuations across the market allow for attractive entry points, decreasing upside risk for these companies going forward.
Ever since I founded Meson in 2009, I have taken the path knowing that I would be doing this for 50 years. I have always reinvested our management and incentive fee revenues for the long term to improve our investment process and am tremendously excited for this new chapter. I’m proud to be building the team and we are now up to 3 full time professionals and another 4 part time. The firm has approximately $30mm AUM and following the anticipated close of the Sevcon acquisition we will have over $1mm of working capital in the firm to ensure long term stability for investors and our employees. I believe we are uniquely positioned to take advantage of the current and future market environment.
I continue to have virtually all of my investable net worth committed alongside investors in the Partnership. Please email me at [email protected]esoncapital.com or call at 415-322-0486 if you have any questions or are interested in investing. As always, thank you for reading.
Sincerely,
President
Meson Capital Partners, LLC