Corsair Capital's Q1 Letter & Pitch on Orbital ATK

Jay Petschek and Steven Major's hedge fund firm Corsair Capital is out with its first quarter letter to investors.  In it, they talk about the global macro situation as well as their positions in Ryman Hospitality (RHP), Kindred Healthcare (KND), CommScope (COMM), and Republic Airways (RJET).

Sees IAC Interactive Spin-Off Coming

Additionally, they outline their thoughts on IAC Interactive (IACI).  They feel shares are worth over $100 (currently trading around ~ $72) and see revenue growth via their online dating apps (advertising implementation on Tinder and paid subs on Tinder Plus).  Corsair expects chairman Barry Diller to spin-off the online dating segment (Match Group) in order to unlock value.

Pitch on Orbital ATK

The end of their letter includes a pitch on Orbital ATK (OA).  In summary, Orbital merged with Alliant Techsystems and they see various synergies here.  This, plus increased buybacks and dividends lead them to believe multiple expansion will occur, bringing the company more inline with competitors.  They think shares are worth ~$100 and currently trade around $73. See the letter below for the full pitch.

Corsair's Q1 Letter

Embedded below is Corsair Capital's Q1 2015 letter:



For more from this hedge fund, head to Corsair Capital's recent interview with Graham & Doddsville.

Corsair Capital's Thesis on Ryman Hospitality: Q1 Letter

Jay Petschek and Steven Major's hedge fund Corsair Capital finished the first quarter of 2013 up 8.1% net and their compounded net annual return sits at 14.5%.  Their Q1 letter detailed a write-up of their thesis on Ryman Hospitality (RHP), a current core investment.


Corsair's Thesis on Ryman

In summary, the company is a transformation story as they've morphed from Gaylord Hotels into Ryman, specializing in the premium large group segment. 

They've converted from a C-Corp into a REIT, sold the Gaylord brand and management rights to Marriott, and are looking to leverage Marriott's group customer base.

Due to these (and numerous other changes outlined below), Corsair feels that Ryman has great revenue visibility and thinks it should trade closer to the valuation of shopping mall REITs. 

With a 4.5% yield, they see a $60 stock in the near term and the potential to head as high as $70 if investors give it the premium valuation they think it deserves.


Embedded below is Corsair Capital's Q1 letter with their thesis on Ryman Hospitality:




For more from this hedge fund, we've highlighted some of Corsair's recent portfolio activity as well as their thesis on Acacia Research too.