My Top Holding Is Overlooked And Has Massive Potential: P10 Holdings

Aug. 26, 2020 1:01 PM ETP10, Inc. (PX)26 Comments
Live Hard Investing profile picture
Live Hard Investing


  • P10 Holdings is an alternative asset manager with a history of accretive acquisitions and beneficial tax assets.
  • Aside from this, the company has ably demonstrated ability to organically grow its asset management business and has understated profitability.
  • Management is aligned with shareholders, and the company is likely to benefit from long term secular growth in alternative assets.

Investment Thesis

P10 Holdings (PIOE) is an alternative asset manager that has a history of accretive acquisitions and strong revenue growth. It also stands to benefit from secular growth headwinds in the alternative asset management industry. Additionally, the company benefits from multiple holdover tax assets from its "prior life" as well as an accounting quirk that hides its true profitability.

(8/26 Update)

Author's Note: Not long after I wrote this article, P10 Holdings announced another transformative acquisition, purchasing the venture capital firm TrueBridge. The market has... ummmm... liked it.

ChartData by YCharts

I will plan to post longer form thoughts on this new acquisition and a valuation update when the next quarter's results are released. In short, everything I wrote below applies, and this is just another example of P10 making a shrewd acquisition that will be accretive to earnings and cash flow. This company is going to be worth multiples of its current value years down the road, and you're not too late to join.

Now for the original article and thesis....


I am not a huge fan of our current market. The valuations scare me and won't lead to strong long term returns. While stock picking isn’t for everyone, more than ever this strikes me as a good time to look for inefficiencies and deep value. Last week I discussed another large holding of mine, Pershing Square Tontine Holdings, but today I want to talk about one of my favorite stocks.

What if I told you I stumbled across a company that:-Is small and not covered by analysts-Has growing revenue and is profitable-Has a clean balance sheet-Is run by smart capital allocators-Has (very) high insider ownership-Has a growth runway in place-Is participating in a generational, secular growth trend-Is planning to use acquisitions to further fuel growth with a track record

This article was written by

Live Hard Investing profile picture
https://livehard.substack.comPersonal Finance the Right Way... Because Money MattersLooking for long term alpha. Long only. Long time horizon. Willing to accept volatility. Shedding light in the darker corners of the market. Exploring alternative assets.

Disclosure: I am/we are long PIOE, BAM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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