Here’s Why White Brooke Capital Sold Tile Shop Holdings (TTSH)

Economic Overview - The US economy showed resilience in Q3 2025, with growth surpassing expectations due to high-end consumer spending and significant investments in artificial intelligence [1] - Softening labor markets may lead to potential cuts in short-term interest rates later this year [1] White Brook Capital's Performance - The Small Cap Absolute Growth Strategy model portfolio performed well in its first year, exceeding expectations [1] - Value-oriented stocks are underperforming, while the All-Cap Portfolio has shifted to growth companies but remains overweight in value, resulting in disappointing performance [1] Tile Shop Holdings, Inc. (NASDAQ:TTSH) Insights - Tile Shop Holdings, Inc. is a specialty retailer of man-made and natural stone tiles, with a one-month return of 4.49% and a 52-week loss of 3.98% [2] - As of December 04, 2025, Tile Shop's stock closed at $6.52 per share, with a market capitalization of $291.845 million [2] Delisting Proposal - Tile Shop proposed delisting its shares at a price higher than the quarter-end close, citing that the company is not receiving adequate credit for its assets as a public entity [3] - The company agrees with the rationale but believes the proposed price is significantly below its intrinsic value, indicating a need for increased home building and renovation activity to realize that value [3] - The company sold into the news and hopes to re-enter if the delisting maneuver is unsuccessful [3] Hedge Fund Interest - Tile Shop Holdings is not among the 30 Most Popular Stocks Among Hedge Funds, with 5 hedge fund portfolios holding the stock at the end of Q3, unchanged from the previous quarter [4] - While acknowledging Tile Shop's potential, the company believes certain AI stocks offer greater upside potential and less downside risk [4]