Insperity, Inc.
Thesis
Insperity is a professional employment organization that has been underperforming due to governance issues and management compensation not being tied to performance. The firm believes that the business has great potential in a strong market, and they have engaged with management extensively to address these concerns.
Did it work?
The long direction was ultimately correct: Insperity returned +167.7% over the fully elapsed 150-month horizon, a solid absolute gain. However, that equates to only roughly 4-6% annualized (with dividends), which likely lagged the broader market over the same period — problematic for a thesis explicitly premised on the stock closing an underperformance gap. The core catalysts (governance reform and performance-tied compensation following extensive management engagement) were never clearly confirmed as resolved, so while the trade made money, the thesis only partially played out.