Does FTAI Infrastructure (FIP) Have an Asymmetric Upside Opportunity?
Tourlite Capital Management, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be downloaded here. Tourlite Fund, LP Founder Class returned 7.8% for Q3 2023 and 7.6% year to date outperforming the S&P 500 and Russell 2000. Since its inception in April 2022, the fund returned 13% compared to (2.8%), and (11.7%) returns for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Tourlite Capital highlighted stocks like FTAI Infrastructure Inc. (NASDAQ:FIP) in the third quarter 2023 investor letter. Headquartered in New York, New York, FTAI Infrastructure Inc. (NASDAQ:FIP) offers infrastructure and equipment for transportation. On December 13, 2023, FTAI Infrastructure Inc. (NASDAQ:FIP) stock closed at $4.10 per share. One-month return of FTAI Infrastructure Inc. (NASDAQ:FIP) was 14.53%, and its shares gained 36.67% of their value over the last 52 weeks. FTAI Infrastructure Inc. (NASDAQ:FIP) has a market capitalization of $407.911 million.
Tourlite Capital made the following comment about FTAI Infrastructure Inc. (NASDAQ:FIP) in its Q3 2023 investor letter:
"We remain convinced that FTAI Infrastructure Inc. (NASDAQ:FIP) represents a significant asymmetric upside opportunity and is overlooked by many investors. On the surface, the company might appear on investors' screens due to its seemingly over-leveraged balance sheet. However, upon closer examination, it becomes evident that a substantial portion of FIP's debt is non-recourse, with an average interest rate of 4%. Transtar continues to generate substantial cash flow, and even the historically underperforming asset, Jefferson Terminal, has finally turned cash flow positive. In fact, when considering the debt at the holding company level, the value of Transtar alone already surpasses the current market capitalization of FIP."
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FTAI Infrastructure Inc. (NASDAQ:FIP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held FTAI Infrastructure Inc. (NASDAQ:FIP) at the end of third quarter which was 15 in the previous quarter.
We discussed FTAI Infrastructure Inc. (NASDAQ:FIP) in another article and shared Tourlite Capital Management's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
