Peconic Partners LLC: Company Profile

Background

Peconic Partners LLC is a registered investment advisor specializing in long/short equity hedge fund strategies. Founded in 2004 by William F. Harnisch, the firm is dedicated to mitigating risk and maximizing returns through a disciplined thematic investment approach. With over four decades of history, Peconic Partners has established itself as a significant player in the hedge fund industry, consistently delivering superior risk-adjusted returns to its clients.

Key Strategic Focus

Peconic Partners employs a highly disciplined thematic investment strategy aimed at generating long-term positive returns, irrespective of market conditions. The firm's approach involves:

• Theme Development: Identifying long-term macro investment themes that transcend economic cycles.

• Theme Evolution: Continuously evaluating and adjusting investment themes to account for innovations and shifts within specific sectors.

• Stock Selection: Conducting in-depth fundamental, quantitative, and technical analyses to select stocks that align with identified themes.

• Risk Management: Implementing strategies to mitigate risk while maximizing returns.

This strategy requires a macro vision to see beyond economic cycles, based on a micro understanding of and relationships with companies within the investment universe.

Financials and Funding

As of the latest filings, Peconic Partners manages discretionary assets totaling approximately $1.8 billion for its clients. The firm's portfolio is concentrated, with significant holdings in select companies. For instance, in Q2 2024, the firm's top holdings included:

• Quanta Services, Inc. (PWR): 5,598,565 shares valued at $1.42 billion, representing 60.98% of the portfolio.

• Dycom Industries Inc. (DY): 3,627,655 shares valued at $612 million, accounting for 26.24% of the portfolio.

The firm's investment strategy has led to substantial growth in assets under management, reflecting its ability to generate superior returns for its clients.

Technological Platform and Innovation

Peconic Partners differentiates itself through its disciplined thematic investment approach, which is rooted in the understanding that the world is constantly evolving. The firm emphasizes:

• Innovation and Evolution: Recognizing that compelling investment opportunities arise from change and innovation rather than stasis.

• Vision and Insight: Leveraging a hands-on approach and passion for research to gain unique insights that drive the evolution of investment themes.

• Consistency with Flexibility: Maintaining a disciplined methodology while allowing investment themes to shift and evolve in response to technological advancements and globalization.

Leadership Team

William F. Harnisch, CFA
President & Chief Executive Officer
Mr. Harnisch began his career at Chase Manhattan Bank in 1968 and later joined Forstmann-Leff Associates (FLA) in 1978. He managed FLA from 1984, overseeing assets exceeding $5 billion, and became the majority shareholder in 1989. In 2004, he founded Peconic Partners to focus on hedged products. Mr. Harnisch holds a B.B.A. from Baruch College and is a Chartered Financial Analyst. He is involved in philanthropy through the William F. Harnisch Foundation and serves on the board of the Baruch College Fund.

Marc Davis
Portfolio Manager & Senior Analyst
Mr. Davis has over a decade of experience in investment management with Peconic. He conducts fundamental research and analysis across the firm's holdings. Previously, he was an equity research analyst at Citi Principal Strategies. Mr. Davis earned a B.S.B.A. in Honors Accounting and Finance from The Ohio State University.

Richard H. Adelaar, CFA
Executive Vice President
Mr. Adelaar began his career as a Security Analyst at Chase Investors in 1963. He joined Peconic Partners' predecessor firm in 1981 and has been with Peconic since its inception in 2004. He holds an M.B.A. and a B.A. from New York University and is a Chartered Financial Analyst.

Wook Lee
Chief Operating Officer
Mr. Lee joined Peconic Partners in 2004. Prior to his appointment as COO, he served as Chief Technology Officer, responsible for designing and implementing the firm's technology infrastructure. He studied Computer Science at the University of Massachusetts Boston and Information Technology at Northeastern University.

Competitor Profile

Market Insights and Dynamics

The hedge fund industry is highly competitive, with firms striving to deliver superior returns to attract and retain clients. The market is characterized by:

• Market Size and Growth: The global hedge fund industry manages trillions of dollars in assets, with growth driven by institutional and high-net-worth investors seeking alternative investment strategies.

• Industry Trends: There is an increasing emphasis on risk management, transparency, and the use of advanced technologies such as artificial intelligence and machine learning in investment decision-making.

Competitor Analysis

Key competitors in the hedge fund industry include:

• Bridgewater Associates: Focuses on global macroeconomic trends and employs a systematic investment approach.

• Renaissance Technologies: Utilizes quantitative models and algorithms to drive investment decisions.

• Man Group: Offers a diverse range of investment strategies, including long/short equity, global macro, and quantitative approaches.

These firms, like Peconic Partners, aim to generate alpha through unique investment strategies and robust risk management practices.

Strategic Collaborations and Partnerships

Peconic Partners' investment strategy is primarily driven by internal research and analysis. The firm emphasizes a hands-on approach, leveraging its team's extensive experience and insights to develop and evolve investment themes. While specific strategic collaborations or partnerships are not publicly disclosed, the firm's success is attributed to its disciplined methodology and the synergistic efforts of its investment team.

Operational Insights

Peconic Partners' distinct competitive advantages include:

• Disciplined Thematic Approach: The firm's ability to identify and capitalize on long-term macro investment themes that transcend economic cycles.

• Experienced Leadership: A leadership team with decades of experience in investment management, providing strategic vision and insight.

• Risk Management: A strong emphasis on mitigating risk while maximizing returns, ensuring the firm's resilience in various market conditions.

Strategic Opportunities and Future Directions

Looking ahead, Peconic Partners is well-positioned to capitalize on emerging investment opportunities by:

• Adapting to Market Innovations: Continuously evolving investment themes to align with technological advancements and globalization trends.

• Expanding Client Base: Attracting new clients by demonstrating a consistent track record of superior risk-adjusted returns.

• Enhancing Technological Capabilities: Leveraging advanced analytics and data-driven insights to inform investment decisions and maintain a competitive edge.