Honworld Initial Position Size June 7, 2015
We are initiating a 7.5% position in Honworld. The company ticks many of the boxes for a great investment including a regional brand moving to a national brand. The existence of economies of scale with customer captivity. The company is extremely profitable when stripping out growth investments that are depressing profitability and the company has a very strong management team. The current expected return is roughly 17% using conservative assumptions. If there is any pullback, we will add to our position.