Investment Q&A

HPS.A has executed very well, and the stock has soared, but it remains cheap on valuation. The backlog is growing and we think the stock has good potential from here. TVK’s management has demonstrated a solid record of growing through acquisitions while paying consistent dividends and opportunistically buying back shares. The company is still trading at around 14x P/E; TVK grew its revenue and earnings by more than 20% on average in the last five years, and we think the company is still small in size and does still have a long runway to grow. At $660M market cap now, more investors are looking at it and we think it can do well from here.

GLXY is led by Mike Novogratz, formerly the Partner and President with Fortress Investment Group and he held a senior role at Goldman Sachs. We feel that Mr. Novogratz has a strong leadership team and they have made some good acquisitions in the past, alongside some poor investment choices. Management is strong, but the performance and quality of acquisitions will largely be determined by the crypto market cycles, and in the lengthy bear markets, the performance of acquisitions and its business segments will underperform.

While we would consider management good across the board here, GLXY has had some issues in the past and we would not really put any of the teams in the CSU-like category.