Steel City Capital Investments Q3 2020 Letter

Steel City Capital Investments, LLC is a registered investment advisor that provides investment management services to a long-biased investment fund and separately managed accounts. We adhere to a value-oriented investment in our pursuit of generating long term growth of capital for investors.

In the third quarter Steel City Capital, LP gained 1.6%, net of fees and expenses, compared to +8.5% of S&P 500 Index and +8.4% MSCI All World Index. Year-to-date, the Partnership has added 2.6%, net.

As the Partnership holds a concentrated portfolio, it should be expected that individual positions will often cause results to diverge materially from market indexes.

Rising inflation will likely weigh on hyper-growth stocks whose valuations are predicated on expectations of significant cash flows in the distant future. Such stocks should make increasingly attractive short candidates.