Vanshap Capital's Q1 Letter: Thesis on Autohellas ~ market folly

Thursday, May 14, 2015

Vanshap Capital's Q1 Letter: Thesis on Autohellas

Evan Vanderveer and David Shapiro's investment firm Vanshap Capital is out with its first quarter letter.  In it, they provide an update on their holdings and introduce their newest investment.

With all the turmoil in Greece, there are bound to be opportunities.  Vanshap has found one via shares of Autohellas SA (GA:OTOEL).  Controlled by one of the wealthiest families in Greece, the company represents Hertz as exclusive franchise partner in various European countries.

Vanshap writes,

"We believe Autohellas is relatively well positioned in the unlikely departure of Greece from the Euro.  The company's debt, provided by a consortium of domestic banks, would likely convert to drachma should such a currency reappear.  On the asset side, we would expect the Hertz business to continue to collect Euros from rental car bookings, while surplus vehicles are likely to be inflation protected and could be liquidated over time.  Lastly, and most importantly over the long-term, we suspect that a giant 'FOR SALE' sign on the Greek islands would significantly boost tourism in the country, benefitting rental car operations.  Nonetheless, risks of a further decline in the leasing business or political calamity disrupting tourism in the short-term linger."

Their full thesis on Autohellas is embedded below:

Vanshap Capital's Q1 Letter
*Update: Removed by request

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