L2 Micro Cap Trade Commentary – June Q1 2025

Table of contents

When

June 20, 2025

Who

Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo

SUMMARY:

In this quarter’s systematic rebalance we are taking gains in one of our best performing stocks, rotating out of a few names for better opportunities while initiating a few new positions.

  • We explain our new positions in Five Point Holdings, LLC (FPH), IHS Holding Limited (IHS) and Cooper-Standard Holdings, Inc (CPS)
  • Provide rationale for adding to our position in Hertz Global Holdings, Inc (HTZ)
  • We explain our decision to sell out of Enviri Corporation (NVRI), BrightView Holdings, Inc. (BV) and Global Ship Lease, Inc. (GSL) for better opportunities
  • Detail our decision to trim our position in Tutor Perini Corp (TPC)

SELECT NOTES ON NEW BUYS & SELLS:

We initiated a position in Five Points Holdings, LLC (FPH) is an owner and developer of mixed-use planned communities in Los Angeles, Orange, and San Francisco counties in California. Through a complicated ownership structure, FPH Class A shareholders own about 40% of a company with no net debt. This implies FPH has an “effective” overall enterprise value (EV) of around $2 billion.