Our material long positions (>3% of the portfolio) at the end of February were as follows (in order of size): Trex Co. (TREX), Alliance Fiber Optic Products (AFOP), Mesa Laboratories (MLAB), Colfax Corp. (CFX), Core Laboratories (CLB), Eagle Materials (EXP), Caesarstone Sdot-Yam (CSTE), Kirby Corp. (KEX), American Vanguard (AVD), Chart Industries (GTLS), NOW Inc. (DNOW), Masonite International (DOOR), Primoris Services Corp. (PRIM), Astronics Corp. (ATRO), Hudson Technologies (HDSN), Trimble Navigation (TRMB), and Team, Inc. (TISI).

There were no material longs completely exited in February. Materion Corp. (MTRN), Valmont Industries (VMI), and Geospace Technologies (GEOS) remain positions, but we have trimmed them to below 3% of the portfolio.

The additions to the list were Astronics Corp. (ATRO) and Team Inc. (TISI). Astronics primarily makes in-seat power and entertainment systems for airplanes; it also makes equipment that tests and measures communication signals. The in-seat power and entertainment systems business has surged in recent years as airlines have tried to catch up with the times; however, in recent quarters, the test and measurement business has struggled due to erratic and underwhelming order patterns by Apple (AAPL). In our view, test and measurement (T&M) equipment sales are near a bottom, and more importantly, we argue that T&M’s weakness is masking the strength of the aerospace business. We

Team, Inc. provides test, inspection, and repair services to the “process” industries (e.g., pipelines, refineries, petrochemical facilities, power generation), and is a direct competitor to one of our shorts, Mistras Group (MG). TISI shares, unlike those of MG, have tanked in recent months as downstream and integrated oil and gas companies have restrained their maintenance spending at the same time a surplus of labor has hit the market (which affects TISI’s pricing power). Basically, what we have set up with TISI and MG is a pair trade. TISI has already been hit hard and we don’t think there’s much downside left. We also think it is the higher-quality of the two companies and that its recent acquisition of Furmanite presents some company-specific upside (via synergies and long-term pricing power).

[us_separator]

The above post has been excerpted from a letter of Liberty Park Capital Management.

This monthly letter, furnished on a confidential basis to the recipient, does not constitute an offer of any securities or investment advisory services. It is intended exclusively for the use of the person to whom it has been delivered by Liberty Park Fund, LP and it is not to be reproduced or redistributed to any other person without the prior written consent of the Fund.

This information has been compiled by Liberty Park Capital Management, LLC and while it has been obtained from sources deemed to be reliable, no guarantee is made with respect to its accuracy. The Fund does not represent that the information herein is accurate, true or complete, makes no warranty, express or implied, regarding the information herein and shall not be liable for any losses, damages, costs or expenses relating to its adequacy, accuracy, truth, completeness or use.

This monthly letter is subject to a more complete description and does not contain all of the information necessary to make an investment decision, including, but not limited to, the risks, fees and investment strategies of the Fund. Any offering is made only pursuant to the relevant private offering memorandum, together with the current financial statements of the Fund, if available, and a relevant subscription application, all of which must be read in their entirety. No offer to purchase interests will be made or accepted prior to receipt by an offeree of these documents and the completion of all appropriate documentation.

Liberty Park Fund, LP’s 2011 returns are audited; however, all other figures are estimated and unaudited. Net results reflect the net realized and unrealized returns to a limited partner after deduction of all operational expenses (including brokerage commissions), management fees and performance allocations. Performance data assume reinvestment of all distributions. Actual returns will vary from one limited partner to the next in accordance with the terms of the fund’s limited partnership agreement. Past performance is not indicative of future results and investors risk loss of their entire investment. Performance results are shown for the period from February 2011 through February 2016.

References in this presentation are made to the Russell 2000 Index for comparative purposes only. Liberty Park Fund, LP may be less diversified than the Russell 2000 Index. The Russell 2000 Index may reflect positions that are not within Liberty Park Fund, LP’s investment strategy.