Investment Services

Investment Services - Hedge Fund Identifying High Impact Blind Spots

Our client, consistently ranked in Morningstar’s Top Ten for Small & Mid Cap funds sorted by Alpha, wanted to inform its investment position in Great Lakes Dredge & Dock Company (GLDD). GLDD’s plans to improve current year performance center on a renewed domestic project focus in rivers and lakes and coastal remediation, and the acquisition of a new class of ATB dredge which promises to access new types of projects, lower maintenance costs, and improve efficiencies beyond those of traditional trailing suction hopper dredges.

Between earnings calls, Bush Consulting Group evaluated the elements of GLDD's strategy and their impact to Great Lakes' financials. Our team determined that while the overall market for dredging is solid, GLDD is unlikely to substantively grow its existing business in 2017. Our final report divulges insight into ten blind spots to GLDD's potential value. One such area is the GLDD’s price realization on project work for the United States Army Corps of Engineers. As can be seen below, 2017 awards indicate a significant drop from GLDD's premium positions in 2015 and 2016.

Instead of increasing its investment in GLDD as originally planned, our hedge fund client modified its position after the team's initial report of findings. The client also expects to capitalize on the generated insight beyond the current investment cycle.

Investment Services - Hedge Fund Critical Insights Influence Position

Hedge Fund - HIB1 Pricing