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Star Group, L.P.

SGU position long Wilmot Kidd and John Hill, Central Securities

Thesis

Star Group is a fuel oil distributor with a management team focused on improving cash flow per share over time, despite not having positive organic revenue growth. This focus on cash flow makes it a unique investment opportunity.

Did it work?

inconclusive confidence: low

The thesis is a long bet predicated on management improving cash flow per share over time, but no price performance is available and no time horizon or cash flow data is provided to verify whether that cash flow improvement actually occurred. Without either a return figure or evidence on the thesis's core driver (cash flow per share growth), there is no basis to judge success or failure.