{"id":2457071,"date":"2023-02-07T13:12:27","date_gmt":"2023-02-07T18:12:27","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2457071"},"modified":"2023-05-04T14:38:27","modified_gmt":"2023-05-04T18:38:27","slug":"black-bear-value-partners-4q22-commentary","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/black-bear-value-partners-4q22-commentary\/","title":{"rendered":"Black Bear Value Partners 4Q22 Commentary"},"content":{"rendered":"<p>Black Bear Value Partners LP <a href=\"https:\/\/valuewalkpremium.com\/black-bear-value-partners-3q22-commentary\/\" target=\"_blank\">commentary<\/a> for the fourth quarter ended December 31, 2022.<\/p>\n<p style=\"text-align: right;\"><i>\u201cDon\u2019t play everything; let some things go by\u2026. What you don\u2019t play can be more important than what you do.\u201d\u00a0<strong>\u2013 Thelonious Monk<\/strong><\/i><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/valuewalkpremium.com\/q4-2022-hedge-fund-letters-database-now-live\/?ck_subscriber_id=293182741&amp;utm_source=convertkit&amp;utm_medium=email&amp;utm_campaign=Q4+2022+Hedge+Fund+Letters+Database+Now+Live%20-%209755315\" target=\"_blank\"><em><strong>Q4 2022 hedge fund letters, conferences and more<\/strong><\/em><\/a><\/p>\n<p style=\"text-align: left;\">Dear Partners and Friends,<u><\/u><u><\/u><\/p>\n<ul>\n<li><u><\/u>Black Bear Value Fund returned +1.8%, net, in <a href=\"https:\/\/www.valuewalk.com\/december-employment-report-exceeds-expectations\/\">December<\/a> and +12.5% for 2022.<u><\/u><u><\/u><\/li>\n<li><u><\/u>The HFRI Value Index returned -0.9% in December and -8.1% for 2022.<u><\/u><u><\/u><\/li>\n<li><u><\/u>The S&amp;P 500 returned -5.8% in December and is -18.1% for 2022.<u><\/u><u><\/u><\/li>\n<\/ul>\n<p>From the start of our Partnership, it was clear that investment knowledge alone would not be enough for a sustainable business with a competitive advantage. If we could create a long business runway we could invest for the long-term (not the next quarter or year).<\/p>\n<p>As a result, I underwrote the business to failure\u2026I presumed to raise 0 dollars meaning Lauren and I would have to fund the business entirely ourselves for 5-10 years. We would invest in high quality service providers but otherwise keep the operating costs lean.<\/p>\n<p>This mentality, while unusual, gave me the freedom to look for ideas and quality long-term investors. Having a durable business structure leads to quality partners which leads to the ability to have a quality long-term and concentrated portfolio\u2026they\u2019re all interconnected.<\/p>\n<p>Thankfully we have attracted amazing LP\u2019s that range from high-net-worth individuals to family offices. Although our headcount has grown from a team of 1 to a team of 2 (CFO David Proskin), we will forever maintain a lean and bootstrapped culture. It helps explain our returns, our patience, and our extremely high-quality LP base.<u><\/u><u><\/u><\/p>\n<p>Topics covered in our letter include:<\/p>\n<ul>\n<li><u><\/u><u><\/u><u><\/u>2022 in review<\/li>\n<li><u><\/u><u><\/u><u><\/u>Could something other than rates be unprecedented?<\/li>\n<li><u><\/u><u><\/u><u><\/u>Degree of difficulty when investing<\/li>\n<li><u><\/u><u><\/u><u><\/u>Inflation thoughts and short ideas<u><\/u><u><\/u><\/li>\n<li><u><\/u>Discussion of our top 5 investments<u><\/u><u><\/u><\/li>\n<li><u><\/u>General fund updates and medium term growth plans<u><\/u><u><\/u><\/li>\n<\/ul>\n<p>Please note <a href=\"https:\/\/valuewalkpremium.com\/black-bear-value-fund-december-2022-update\/\" target=\"_blank\">returns<\/a> could vary depending on your time of investment.<u><\/u><u><\/u><\/p>\n<p>2022 Year-End Letter:<a href=\"https:\/\/www.blackbearfund.com\/so\/44OO8mq0L\/c?w=jH85u_PtYRo_JSyAJRWinNxsco4uKrmbEUu2fmJzxZU.eyJ1IjoiaHR0cHM6Ly9lNzIyYmI5NS01NjMwLTQ2MWUtYjhjZS0xNDRhMDAyNmRiNzYuZmlsZXN1c3IuY29tL3VnZC82YzljYWNfZDc5MTkzNGVmMGMzNDExZmI2NDMyMzRmOTdjZDVjNWIucGRmIiwiciI6IjJhZTEzMjllLTEzZGEtNDMzNi0wMWZlLTE0ZGE4NzhmNWU5YiIsIm0iOiJtYWlsIiwiYyI6ImIyM2VjOWE1LTdlMWYtNDk1Mi1iZDYzLTM3MDM3ZDRkYTdlMCJ9\" target=\"_blank\" rel=\"noopener nofollow\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.blackbearfund.com\/so\/44OO8mq0L\/c?w%3DjH85u_PtYRo_JSyAJRWinNxsco4uKrmbEUu2fmJzxZU.eyJ1IjoiaHR0cHM6Ly9lNzIyYmI5NS01NjMwLTQ2MWUtYjhjZS0xNDRhMDAyNmRiNzYuZmlsZXN1c3IuY29tL3VnZC82YzljYWNfZDc5MTkzNGVmMGMzNDExZmI2NDMyMzRmOTdjZDVjNWIucGRmIiwiciI6IjJhZTEzMjllLTEzZGEtNDMzNi0wMWZlLTE0ZGE4NzhmNWU5YiIsIm0iOiJtYWlsIiwiYyI6ImIyM2VjOWE1LTdlMWYtNDk1Mi1iZDYzLTM3MDM3ZDRkYTdlMCJ9&amp;source=gmail&amp;ust=1675536934196000&amp;usg=AOvVaw1jtB2dP6rFrKKgRSRCpCZi\">\u00a0<\/a><a href=\"https:\/\/www.blackbearfund.com\/so\/44OO8mq0L\/c?w=8lTS3WLG_3hCb0DlvqqmQm-BHQ2ND5ZrIQXkYzd3XLk.eyJ1IjoiaHR0cHM6Ly93d3cuYmxhY2tiZWFyZnVuZC5jb20vX2ZpbGVzL3VnZC82YzljYWNfNzliNjc1YjMzYjBjNDM5NWExNzdiZTVmMzY2ODA1NTMucGRmIiwiciI6IjJhZTEzMjllLTEzZGEtNDMzNi0wMWZlLTE0ZGE4NzhmNWU5YiIsIm0iOiJtYWlsIiwiYyI6ImIyM2VjOWE1LTdlMWYtNDk1Mi1iZDYzLTM3MDM3ZDRkYTdlMCJ9\" target=\"_blank\" rel=\"noopener nofollow\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.blackbearfund.com\/so\/44OO8mq0L\/c?w%3D8lTS3WLG_3hCb0DlvqqmQm-BHQ2ND5ZrIQXkYzd3XLk.eyJ1IjoiaHR0cHM6Ly93d3cuYmxhY2tiZWFyZnVuZC5jb20vX2ZpbGVzL3VnZC82YzljYWNfNzliNjc1YjMzYjBjNDM5NWExNzdiZTVmMzY2ODA1NTMucGRmIiwiciI6IjJhZTEzMjllLTEzZGEtNDMzNi0wMWZlLTE0ZGE4NzhmNWU5YiIsIm0iOiJtYWlsIiwiYyI6ImIyM2VjOWE1LTdlMWYtNDk1Mi1iZDYzLTM3MDM3ZDRkYTdlMCJ9&amp;source=gmail&amp;ust=1675536934196000&amp;usg=AOvVaw1brI0irjiyGgbADxfvSO24\"><u>Link to Letter<\/u><\/a><u><\/u><u><\/u><\/p>\n<p>Thank you for your trust and support,<\/p>\n<p><strong>Black Bear Value Partners, LP<\/strong><\/p>\n<p><a href=\"mailto:Adam@BlackBearFund.Com\">Adam@BlackBearFund.Com<\/a><\/p>\n<p><a href=\"https:\/\/www.blackbearfund.com\/\" rel=\"nofollow\" target=\"_blank\">www.blackbearfund.com<\/a><\/p>\n ","protected":false},"excerpt":{"rendered":"<p>Black Bear Value Partners LP commentary for the fourth quarter ended December 31, 2022. \u201cDon\u2019t play everything; let some things &#8230; <a title=\"Black Bear Value Partners 4Q22 Commentary\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/black-bear-value-partners-4q22-commentary\/\" aria-label=\"More on Black Bear Value Partners 4Q22 Commentary\">Read more<\/a><\/p>\n","protected":false},"author":19164,"featured_media":2253088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640,10691],"tags":[665169],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2457071"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/19164"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2457071"}],"version-history":[{"count":2,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2457071\/revisions"}],"predecessor-version":[{"id":2464237,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2457071\/revisions\/2464237"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2253088"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2457071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2457071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2457071"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2457071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}