Relationship Investing | Barratt Capital Management, Inc.

RELATIONSHIP INVESTMENT PORTFOLIO

The team has extensive experience in relationship investing and special situation investing obtained at Morgan Stanley and Ontario Teachers' Pension Plan.

Through our private investment holding company, Barratt Capital Holdings, Inc., we look to invest in significant minority positions in what we believe are undervalued public or near public companies. We influence the outcome of our investments through board positions or constructive engagement. We invest with an 18-month horizon and target IRRs above 20%. That said, we will hold some positions for a significant period of time if we deem the value thesis intact. We invest with a global mandate and have a heavily concentrated investment book.

Hertz is the largest car rental company in the world. We invested in Hertz when it was exiting restructuring and hold a substantial position in the 30-year warrants. We feel that Hertz is absolutely and relatively undervalued.

Barratt Developments is the leading home developer in the U.K. The firm took a position in this company prior to founding. We believe the fundamentals towards home development in the U.K. are very strong and that Barratt Developments is undervalued.

We invested in Mr. Cooper, a mortgage investment corporation controlled by KKR, that is structured within the former Wamu corporate shell. Mr. Cooper is extremely under-valued and has substantial tax assets available.

We invested in Spirit Aerosystems following the Pandemic. We think Spirit is cheap due to a ton of headwinds that are disconnected to the fundamentals of the business.