Over the last 4.5 years, Zorik Capital has generated an IRR of 34.5%, outperforming the S&P 500 by 247% over the same timeframe

Highlighted Previous Investments

Wells Fargo

After calculating that the market was over estimating its loan losses and was overly bearish on asset cap regulations imposed by the Federal Reserve, Blake bought Wells Fargo when it was trading at 60% of book value. Shortly after he invested, Warren Buffett started actively selling the stock. Investment up 100%

Albertsons (grocery chain)

In June of 2020, when Albertsons went public, consumer’s grocery spending was elevated as people were eating mainly at home. Investors started selling as they believed that earnings would soon crater, but Blake estimated post COVID free cash flow to only be slightly below pre COVID levels, implying a 15% FCF yield, more than double Kroger’s, their closest competitor. Investment up 85% in 10 months

WWE (wrestling)

The nearly 100 million devoted fans of WWE provided substantial pricing power and a large moat. Additionally, there was a potential to expand revenues exponentially through their ongoing international expansion. The strong, stable aspects of the business, paired with growth potential made the sub 20 forward PE a very attractive long term proposition. Investment up 40% in 10 months.

Organon (pharmacuetical)

Revenues had been declining for the past several years as their key drugs were losing patents, causing the company to be valued at a PE of 5 and a FCF yield of 20%. However, looking through their current portfolio of drugs, Blake realized that for the next 8+ years none of their major drugs will lose a patent, meaning that revenues should start to stabilize. Therefore, the low valuations were a reflection on the past of declining revenues and not the future of stable revenues. Investment up 20% in 5 months.

Traded VIX Volatility

Actively traded (buying and selling multiple times) the VIX Volatility Index in March of 2020, betting that uncertainty around Covid and lots of bad news would drive up volatility. Investment up 20%+