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Freshford Capital Management’s Return, AUM, and Holdings

Liliana De la Torre

Freshford Capital Management was launched back in 2008 by Michael G. Doheny. The firm has its headquarters in Rye Brook, New York and primarily focuses in long/short investments in the public equity markets in the United States. Michael Gerard Doheny is the principal owner and President at Freshford Capital Management. He holds a B.S. in Accounting and Economics from Boston College. As per his professional experience, Mr. Doheny accumulated his investment acumen while working for eight years at Kensico Capital before deciding to start his hedge fund.

Freshford Capital Management employs a fundamental value investment strategy attempting to invest in asset-oriented securities the fund considers to be undervalued by the market. For this purpose, it makes long/short investments, based on the bottom -up, in-depth fundamental analysis. By the use of this strategy, the firm aims to generate superior risk-adjusted returns, using leverage at times. As of March 29th, 2019, Freshford Capital Management disclosed on its Form ADV to manage approximately $915.44 million of assets under management on a discretionary basis.

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Taking a look at the performance of its funds we can see that for instance, its Freshford Partners fund generated an impressive annual return of 24.89% in 2013. However, 2014 and 2015 were down years; it lost 0.92% and 4.30% respectively. The following year, 2016, the fund went back in track attaining a positive 18.93 %. The tendency continued in 2017 when it brought back 16.06%. From January through October 29th, 2018 (YTD) the fund attained 2.38%. Freshford Partners' total return amounted 144.70% with a compound annual return of 9.36%. Its worst drawdown was at 12.81.

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At the end of the fourth quarter of 2018, Freshford Capital Management's equity portfolio was valued $489.12 million and counted 19 positions, after the fund had dumped six and added five new positions. Among those six dropped holdings were Acadia Healthcare Company (NASDAQ:ACHC), Viasat Inc. (NASDAQ:VSAT), and YUM! Brands, Inc. (NYSE:YUM). The fund sold out 837,161 Acadia shares with a value of $29.47 million, 561,932 Viasat's shares worth $35.94 million, and 250,684 YUM! Brands' shares with a value of $22.79 million .

The fund also reduced 7 stakes during the quarter. For instance, it lowered its stake in Constellation Brands (NYSE:STZ) by 38% to 43,016 shares valued at $6.92 million. Also, its holdings in Akamai Technologies Inc. (NASDAQ:AKAM) were reduced by 38%, ending up with a total of 470,185 shares, which were worth $28.72 million.

Read the rest of the article here, if you want read about Freshford Capital's top Q4 positions and acquisitions.

Disclosure: None.

This article was originally published at Insider Monkey.