market folly

Jay Petschek and Steven Major's hedge fund Corsair Capital recently sent out their Q2 letter and in it they detailed their thesis on a new core investment, American Realty Capital Properties (ARCP).

The main story here is that this is an underfollowed company with minimal sell-side coverage that's gone through a "major transition" over the past 6 months.  The company is a net lease real estate investment trust that owns single tenant commercial properties.

Overall, Corsair sees numerous catalysts for the company, including closing 2 deals, internalizing the management company, increasing the dividend slowly, and acquiring more properties.

Embedded below is Corsair's Q2 letter with the full ARCP thesis:




In the other part of Corsair's letter, the hedge fund firm also reveals they have a new core position in ING US Inc (VOYA).  This is a spin-off of the company's US operations that came to market at ~50% of book value as the company was a 'forced seller.'  Corsair thinks the company will trade at book value ($38) or slightly higher as the company drives initiatives and they could start a dividend.

For more on this hedge fund, we've also posted up Corsair's thesis on Ryman Hospitality here.