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Cedar Creek Fund LP - The Prince Henry Group

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					Eriksen Capital Management

 CEDAR CREEK PARTNERS, LLC


        TIM ERIKSEN
      MANAGING MEMBER

        APRIL 7-8, 2011
Eriksen Capital Management - Disclaimer
   NOT AN OFFER TO BUY OR SELL SECURITIES - Please note that this presentation does not constitute an
    offer of interests of Cedar Creek Partners, LLC. Such an offer will only be made by means of a Private Placement
    Memorandum to be prepared and furnished to the prospective investor at a later date. The statements in this
    letter are preliminary and subject to change and are qualified in their entirety by the terms of such Private
    Placement Memorandum. In the event of any inconsistency between this letter and the Private Placement
    Memorandum, the Memorandum shall control. All persons wishing to invest in Cedar Creek Partners, LLC must
    receive, read, and understand the Memorandum and execute the accompanying Subscription Agreements. The
    information contained in this presentation is confidential, has been prepared solely for the information of the
    persons to whom it has been delivered and should not be reproduced, distributed (except to the professional
    advisors of the recipient, for the purpose of rendering professional advice to the recipient) or used for any other
    purpose.

   RISK FACTORS - An investment in Cedar Creek Partners, LLC may involve substantial risks, including the
    risk of loss. All of these risks are described in greater detail in the Private Placement Memorandum.

   TAX RISKS - An investment in Cedar Creek Partners, LLC involves tax liability which will depend upon the
    limited partner’s individual circumstances. Prospective investors should read the Private Placement
    Memorandum and consult their own tax advisors with respect to the tax consequences arising from investment.

   OTHER - The foregoing list of risk factors does not purport to be a complete examination of risks involved in
    the offering. Potential investors should read the entire Memorandum before deciding to invest in the
    partnership.

   PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE PERFORMANCE, AND YOUR
    INVESTMENT RETURNS MAY VARY CONSIDERABLY FROM THOSE PRODUCED IN THE PAST.
    FURTHER, YOUR INDIVIDUAL RESULTS MAY VARY FROM THE FUND RESULTS DEPENDING
    UPON THE TIMING OF YOUR INVESTMENT.
Eriksen Capital Management - Overview

 Founded in 2005 by Tim Eriksen. Firm adheres to a
 bottom-up value based strategy. ECM is based in Lynden,
 Washington.
 Manages Cedar Creek Partners, LLC, a private Investment
 Partnership started in January 2006.
 Cedar Creek Partners has returned approximately 22.0%
 annualized, net of fees, from January 2006 (inception)
 through March 2011, while the S&P500 has returned about
 2.7% annualized.
 In 2010, 23% of the management company was sold to an
 investor group led by Zeke Ashton of Centaur Capital.
 Eriksen Capital Management – Manager

      Tim Eriksen
Founded Eriksen Capital Management in 2005.

Registered Investment Advisor Rep. (WA & CA)

Education:
 M.B.A. – Texas A&M University ‘97
  (Magna cum laude, recipient of a full fellowship)
 B.A. – The Master’s College ‘91
  History and Political Studies (Magna cum laude)
 Eriksen Capital Management – Manager
      Tim Eriksen
 Eriksen Capital Management ’05-current.
  Manage private fund and SMA’s. Written articles for
  Value Investing Letter and Marketocracy Marketscope
  (a few were also published on Forbes.com).

 Walker’s Manual Inc. ’04-’06
  Covered unlisted, Micro-Cap and Community Bank
  stocks. Wrote bi-monthly subscription newsletter.

 Peter Kiewit & Sons ’99-’04
  Administrative Engineer on $600 MM Benicia-Martinez
  Bridge and Field Construction Engineer (Supervisor) on
  Bay Area portion of long haul fiber-optic construction
  project for Level (3).
    Eriksen Capital Management - Philosophy
 Cedar Creek Partners, a private investment partnership, is managed with the
    goal of Capital Appreciation through concentrated investments in selected
    companies that we believe are selling below intrinsic value.
   The fund is long biased, and will typically hold 10-30 long positions and 0-10
    short positions, and is typically 70 to 90% net long.
   Investments are selected using a value-based approach with an emphasis on
    free cash flow, asset values, and earnings capacity.
   Individual position sizes are determined based on the overall attractiveness
    of the investment, which includes a risk assessment of the individual security
    as well as any correlation it may have with other securities in the fund.
   Ideally the fund will purchase shares in companies that are likely to grow
    their intrinsic value in the future, thus creating the potential for superior
    returns.
   We will generally begin to trim a position as it reaches our price target due to
    the price increase changing the risk/reward relationship. At times a position
    will be sold before it reaches our price target if a more attractive opportunity
    presents itself.
Eriksen Capital Management - Performance

  Cedar Creek Partners as of 3/31/11 (launched January 15, 2006)
                                                     Cedar Creek                                     S&P500 (SPY)                                          Nasdaq


               $300,000
                                                                                                                                                                                                                            $281,096
               $275,000

               $250,000

               $225,000

               $200,000

               $175,000

               $150,000

               $125,000                                                                                                                                                                                                     $120,027
               $100,000                                                                                                                                                                                                     $114,661
                $75,000

                $50,000
                                                                                                    1/1/08




                                                                                                                                                                                                                   1/1/11
                                                                                                                      7/1/08




                                                                                                                                                                                                         10/1/10
                          1/1/06




                                                                                                                                                                                       4/1/10
                                            7/1/06




                                                                                                                                         1/1/09


                                                                                                                                                           7/1/09
                                                                                          10/1/07


                                                                                                             4/1/08




                                                                                                                                                                              1/1/10
                                                               1/1/07




                                                                                                                                                                                                7/1/10
                                                                        4/1/07




                                                                                                                               10/1/08
                                   4/1/06


                                                     10/1/06




                                                                                                                                                  4/1/09


                                                                                                                                                                    10/1/09
                                                                                 7/1/07




                                                                   Net of fees and expenses.


     Nasdaq excludes dividends due to immateriality. S&P 500 returns measured by S&P 500
     Depository Receipt Trust (SPDR) ticker:SPY. See Appendix A for additional information.
Eriksen Capital Management - Performance


                Average Annual Return Since Inception
    25.00%
                21.96%

    20.00%



    15.00%



    10.00%


                                   4.41%                                      4.80%
                                                       3.57%
     5.00%                                                                                2.66%

    0.00%
                Cedar Creek          DJIA              Nasdaq            Russell 2000     S&P 500

                                      Average Annual Return Since Inception


             Inception January 15, 2006. Through March 31, 2011. Net of fees and expenses.

     Nasdaq excludes dividends due to immateriality. S&P 500 returns measured by S&P 500
     Depository Receipt Trust (SPDR) ticker:SPY. See Appendix A for additional information.
           Stock Selection Process


                  Focus on under-followed companies and
Universe          industries with attractive characteristics



Style                  Fundamental Value Investing



                   Look for near-term catalysts likely to
Timing              eliminate discount to intrinsic value


                     Build positions in securities with
Selection         substantial discounts to Intrinsic Value
                  Stock Selection Process


                            Focus on under-followed companies and
   Universe                 industries with attractive characteristics

Under-followed companies (little or no Wall Street coverage)
 Small caps and Micro caps primarily
 Misunderstood Mid Caps and Large Caps


Attractive industries (free cash flow generators)
 Pricing power
 Minimal capital requirements
 High margins
 Sales growth
                   Stock Selection Process


      Style                          Fundamental Value Investing


Value is more than just a discount to book value
         “It is a better to buy a good business at a fair price than a
         fair business at a good price”
                                                    - Warren Buffett
The ideal investment is:
     Not only purchased at a discount to its intrinsic value
     But also has capable management in place that can continue to
      increase the value of the company
                 Stock Selection Process


    Style                        Fundamental Value Investing



Philosophy:
 Warren Buffett, Graham & Dodd: Intrinsic Value analysis


 Mario Gabelli: find undervalued stocks with a catalyst – some near
  term event that will unlock the value of a stock.

 Peter Lynch: buy-what-you-know, growth–at-reasonable-price
  (GARP).
                 Stock Selection Process


                             Look for near-term catalysts likely to
    Timing                    eliminate discount to intrinsic value


 In addition to having long-term core holdings, we look for stocks
  that have short to medium-term catalysts that can eliminate the
  discount.

 We’d rather cycle through a number of short-term catalysts than
  wait a number of years for a long-term catalyst. It is like retailing,
  we would rather turn over our investment more times.
                 Stock Selection Process


                             Build concentrated positions in securities
    Selection                at substantial discounts to Intrinsic Value

 Excessive Diversification Leads to Mediocre Results.


 It makes no sense to invest the same percentage of a portfolio in
  your 10th best idea as in your best idea.

 It makes more sense to learn more about your five or ten best
  ideas than to focus on trying to add a new idea. You are less likely
  to make a mistake.
Eriksen Capital Management




   Investment Examples




   Fund trade history available upon request.
   Example 1: Stock Selection - Universe

           Asset Management Industry
 High historical returns – e.g. Eaton Vance averaged 32%
  annual return for the 25 year period ending in 2004.
 Industry has solid growth prospects – money continues to
  flow into retirement plans; mutual funds are a simple
  method for saving.
 Industry is not capital intensive.
 Industry is not very price competitive (outside of index
  funds and ETFs).
      Example 1: Stock Selection - Style

         Asset Management Industry
 Typical large firm trades at an above average market
  multiple (typically16-20 times earnings).

 Typical firm has operating margins of 35%.


 Firms tend to trade at a significant premium to book value;
  however, due to high free cash flow, book value is not an
  important factor.
    Example 1: Stock Selection - Timing

          Asset Management Industry
 Search for firms that are undervalued in relation to our
  estimate of their intrinsic value.

 Ideal candidate would have solid growth prospects as well.


 We want there to be a catalyst that will help push the stock
  price upward. One of the best catalysts is earnings growth.
   Example 1: Stock Selection - Selection

      June ‘10 – Calamos Asset Mgmt (CLMS)
 Stock Price - $9.25                 52 week High/Low - $15/$9
 Market Cap - $180 million. AUM as of June 2010 was $30
  Billion.
 EPS ttm was $0.81. Current run rate EPS of $0.90.
 Little Wall Street coverage.
 We were happy to pay 10x earnings for a good asset manager.
  Complicated corporate structure hid true value. Public
  shareholders owned 23% of the underlying business, some of the
  cash exclusively and deferred tax assets. Further research led us
  to the conclusion that CLMS was even cheaper than we thought.
   Example 1: Stock Selection - Selection

      June ‘10 – Calamos Asset Mgmt (CLMS)
 The NPV of the publicly owned cash and tax assets was ~ $4 per share.
  There was also $2.45 per diluted share in net cash and investments at the
  underlying management company. Thus at $9 the buyer was effectively
  paying less than 4x earnings net of cash and tax assets.

            Calamos Asset Management            Jun-10       Sep-10
            Share Price                       $    9.25    $   12.40
            Less CLMS cash                    $   (1.50)   $    (1.73)
            Less CLMS tax assets (NPV)        $   (2.45)   $    (2.32)
            Calamos Holdings                  $    5.30    $     8.35
            Less cash                         $   (2.45)   $    (2.90)
            Effective net price               $    2.85    $     5.45
            After-tax Operating EPS           $    0.75    $     0.85
            Effective P/E ratio                     3.8           6.4
      Example 1: Stock Selection - Result

     June ‘10 – Calamos Asset Mgmt (CLMS)
                                                        Selling
                                        Buy
                  Buy




Bought in June, added more in fall of 2010. By mid January 2011 started
selling around $16 per share as it approached our estimate of intrinsic
value. 75% gain on initial and 33% gain on subsequent purchases.

                             Chart from Yahoo!
   Example 2: Stock Selection - Selection

      Early ‘09 – Highbury Financial (HBRF)
 Stock Price - $1.70            52 week High/Low - $5/$1.40
 Market Cap - $15 million.
 AUM at end of 2007 was $5.1 billion. At end of 2008, it was $3.5
  Billion.
 Cash EPS prior two quarters 9/08: $0.10 based on $4.7B ave.
  AUM; 12/08: ($0.01) ave. AUM of $3.6B.
 No Wall Street coverage. We modeled out March ’09 quarter EPS
  to be at least $0.05 per share.
 Market was pricing the company at under 1 times current earnings
  if you deducted the $1.60 per share of cash on the books.
     Example 2: Stock Selection - Result

        ‘08 – ‘10 – Highbury Financial (HBRF)
                             Buy                    Sell
                                     Sell

                                            Buy            04/10 Paid $1.00 Div.
                                                           Sold to AMG for stock
                                                           10/09 Paid
                                                           $1.50 Div.




Purchased 1/08, sold 9/08 for tax loss and didn’t like economic situation
at the time. Repurchased in early 2009 for approx. cash on books. In 12
months AUM grew from $3.5B to $6.9B and stock was up ~300%.

                              Chart from Yahoo!
      Example 3: Stock Selection - Style

   Natural Resource Royalty Companies

 Prefer royalty companies over producers since they are less
  capital intensive and can generate free cash flow.
 Search for firms that are undervalued in relation to their
  cash flow and assets.
 Ideal candidate would have solid growth prospects as well.
 We want there to be a catalyst that will help push the stock
  price upward. One of the best catalysts is earnings growth.
   Example 3: Stock Selection - Selection

      Mid ‘10 – Pardee Resources (PDER.PK)
 Stock Price - $186                 52 week High/Low - $210/$170
 Market Cap - $130 million.       Price/Book = 1.5x     Yield = 2.1%
 Company generates revenue from coal royalties, oil/gas, and timber sales
  on their 200,000 acres of land, primarily in West Virginia. Coal reserves
  of 350 million tons, or 35 years at current production rate.
 Company has a history of using excess cash for share repurchases (2004,
  2007, & 2008). 15 consecutive years of dividend increases.
 EPS and FCF for trailing twelve months was $15.35 and $20, which
  included a period with depressed pricing.
 No Wall Street coverage. We estimated a current run rate for earnings of
  $20 per share (9x), and $25 for cash flow (7x).
     Example 3: Stock Selection - Result

    ‘10 to current – Pardee Resources (PDER)

                          Buy




Purchased 6/10. Trailing earnings are now nearly $30 as company
received a $10 per share pre-tax lease bonus payment in Q3. Dividend
has been increased. Share price up ~30% in nine months. Still own.
                             Chart from Yahoo!
Eriksen Capital Management




          Current Idea




   Fund trade history available upon request.
   Current Idea - Aberdeen International
- A global investment and merchant banking
company focused on small and micro cap companies
in the resource sector. Listed in Canada.
- Seek to acquire significant equity participation in
pre-IPO and/or early stage public resource
companies with undeveloped or undervalued high-
quality resources. Primarily gold focused.                 Symbol: AAB.TO
- Focus is on companies that:                                 AABVF (pink)
(i) are in need of managerial, technical and               Price: $0.85
    financial resources to realize their full potential;
                                                           Mkt Cap: $75 MM
(ii) are undervalued in foreign capital markets;
    and/or                                                 P/B: 0.65
(iii) operate in jurisdictions with moderate local         Yield: 2.35%
    political risk.                                        52 week high/low:
- Goal is to optimize the return on its investment         $1.02/$0.32
over an 18 to 24 month time frame.
   Current Idea - Aberdeen International
Aberdeen International         Jan-11 Oct-10
Cash                               14      5
Investments
    Public                         68       51
    Private                         19      14
    Warrants                        15       9
Loans                                7       7
Total Investments                 123       86
    per share                   $ 1.41   $0.99   Our 1/31/11 estimate is
                                                 ~$135 million in NAV:
Mine Royalty                       33       33
Simmer Loan (disputed)             10       10   public investments (40%),
Other                               5        5   private investments (20%),
Total Assets                      171      134
                                                 gold royalty streams (20%),
Liabilities (taxes on gains)       35       18   loans (10%), cash (8%).

Shareholder Equity                 136     116
    per share                   $ 1.56   $1.33
                                                 Current Price: $0.85
    fully diluted               $ 1.33   $1.18
   Current Idea - Aberdeen International

Management is aware of, and working to
  eliminate, the discount. Any of these actions
  could provide a catalyst to unlock value:
 Establishing new funds at NAV and be paid
  as an asset manager.                            Symbol: AAB.TO
 Transition into fund management business.          AABVF (pink)
 Sell royalty assets (currently generating in    Price: $0.85
  excess of $2 million annually).                 Mkt Cap: $75 MM
 Vest performance warrants (they are carried     P/B: 0.65
  on the books at zero, are expected to vest      Yield: 2.35%
  this year, current value if vested is $14       52 week high/low:
  million, or $0.10 per share after taxes).       $1.02/$0.32
                     Eriksen Capital Management

                                  Cedar Creek Partners
   Management Fees: 1.25%
   Incentive Fees: 20%
   High Water Mark: Yes
   Hurdle: none
   Minimum Investment: $50,000 (likely to be increased soon)
   Lock Up: 1 Year
   Withdrawals: Monthly (45 day notice)
   Audit – Benson & Neff
   Legal – Richardson & Associates
   Administrative – Unkar Systems
   Prime Broker – BTIG
   Custodian – Goldman Sachs
   Independent Representative – Tom Vance, Vance & Blair LLP
* Fee schedule effective 11/09.
           Eriksen Capital Management

  Thank you for your interest in Cedar Creek Partners

Contact Information:

Tim Eriksen
Eriksen Capital Management
855 Hinotes Court
Lynden, WA 98264

Tel: 360-393-3019
tim@eriksencapital.com
Eriksen Capital Management




        Questions
            Eriksen Capital Management

                             Appendix A
The S&P 500 Returns are reported using the S&P 500 Depository Receipt
Trust (SPDR) which trades under the ticker symbol SPY, as reported on
Yahoo! Finance. Reinvested dividends are included in these figures. A
spreadsheet showing SPY performance versus the Cedar Creek Partners
Fund is available upon request.
Current year results for Cedar Creek Partners are unaudited.
Nasdaq results exclude dividends due to their immateriality.
Past results are no guarantee of future results and no representation is
made that an investor will or is likely to achieve results similar to those
shown. All investments involve risk including the loss of principal.
Fund trade history available upon request.

				
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