Livermore Partners’ presentation at ValueWalk’s Contrarian Investors Virtual Conference, in which David Neuhauser discusses VISTA OIL & GAS and SolGold.
[klarman]Q1 2020 hedge fund letters, conferences and more
Dear Partners,
Livermore’s David Neuhauser Pitches VISTA OIL & GAS And SolGold
Last week I took part in the Contrarian Investors Virtual Conference. Where we presented two of our holdings: VISTA OIL & GAS/S (NYSE:VIST) and London-listed, SolGold plc (LON:SOLG). Both are unique small-cap opportunities which plays into our inflation theme of owning hard assets as currency debasement and deficits take center stage.
Markets have dramatically rebounded since the March lows. Which is great to see except it’s just not reality. It seems liquidity is taking over and fear of missing out is pushing up the market, especially the most overvalued sector of high growth, money losing tech shares. This should serve as a warning not an “all clear” signal. Even though the world is reopening and COVID-19 cases falling, the facts are the world economy, as well as Governments and many corporations, have witnessed a massive shock to their capital structures. Which will remain impacted for years to come.
I fear the path forward will be challenging. Yet, investing is all about risk and reward and finding value. So we own mostly hard assets that should prosper even as inflation and/or stagflation takes hold. Additionally, we are working some new special sit opportunities which could serve very profitable. Will share details as we get further along in the process.
Until then, be well and enjoy the start of summer.
David
