Roubaix Capital LLC, an investment management firm, published its ‘Roubaix Fund Composite’ fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A net return of 26.63% was recorded by the fund for the Q4 of 2020, outperforming its HFRI Equity Hedge benchmark that delivered a 14.50% return but below its Russell 2000 index that had a 31.37% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Roubaix Capital, in their Q4 2020 Investor Letter, said that Anterix Inc. (NASDAQ: ATEX) has a strong potential of joining the economy's upward move post pandemic. Anterix Inc. is a wireless communications applications company that currently has a $713.1 million market cap. For the past 3 months, ATEX delivered a 47.40% return and settled at $40.55 per share at the closing of February 16th.
Here is what Roubaix Capital has to say about Anterix Inc. in their Q4 2020 investor letter:
"We also maintain many long positions in companies that are not specifically tethered to the current backdrop. Instead, either the merits of the business, the development of the thesis or the strength of a trend control the expected outcome. One such position, which we have discussed in the past and remains a large position for the Composite, is Anterix (ATEX). The company owns spectrum approved for dedicated enterprise networks for critical infrastructure industries, among others. This spectrum will allow users to build fully private high speed data networks to capture the value of the internet of things, while at the same time having a higher level of secure communication and infrastructure. In May 2020, company’s plan for its 900 MHz spectrum was approved by the FCC. More recently in December 2020, the company announced its first commercial contract with Ameren (AEE) for a 30 year spectrum lease for a private LTE network with a further 10 year renewal option. This sets the precedent for future contracts. As the company scales with more contracts in 2021, the high margin business model will come into focus and should drive the shares. We also see the potential for the new administration to increase infrastructure spending and emphasize grid security as ways to drive employment and in reaction to a recent high profile government hack, respectively."
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Video: Top 5 Stocks Among Hedge Funds
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