Long Cast Advisers Q3 2018 Letter

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About: Invuity (IVTY), QRHC, CTEK, EVI, SIFY, PSSR, TBTC, DAIO
by: longcastadvisers

Summary

Long Cast Advisers, LLC, is an independent registered investment adviser  investing on behalf of individuals, family offices and endowments. It is concentrated on long term investing, focused on small-cap companies.

Includes detailed analysis of Long Cast Advisers' positions in IVTY, QRHC, CTEK, EVI, SIFY, PSSR, TBTC, DAIO.

Cumulative returns on accounts managed by Long Cast Advisers increased 9% in 3Q18, net of applicable fees. This was mixed against the baseline market indices. Returns for separate accounts managed by LCA ranged from 4% to 16% for the quarter.

Returns rebounded in 3Q18. My letter to clients is posted below. It includes thoughts on existing positions and two new ones towards which we've allocated some of the proceeds on the sale of Invuity (IVTY).

I briefly mentioned towards the end of the letter how helpful it's been for me to re-read Chapter 8 of the Psychology of Intelligence Analysis, by Richards J. Heuer, Jr. That chapter deals with "Analysis of Competing Hypotheses" and lays out such a simple but deep method for assessing such things. The whole book is an amazing read.

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