In O'Keefe Stevens 2024 Q3, Graftech (EAF, Financial) was highlighted as a stock that the fund decided to exit. The decision was driven by a series of negative short-term events that have plagued the company over the past three years, undermining the initial investment thesis. The fund initially invested in Graftech at $12/share, attracted by its vertical integration with Seadrift and the production of Needle Coke, which was expected to provide a competitive advantage and lower operating costs.
"Long-term investment success is often shaped by a series of short-term events, most of which have been negative for this holding over the past three years. Purchases are underwritten based on a 3-5-year holding period, allowing for short-term headwinds to abate, market pessimism to subside, and long-term business results to dominate the discussion and stock price." — O'Keefe Stevens, Q3 2024 Fund Letter
Read full letter at gurufocus O'Keefe Stevens 2024 Q3 page.
