Turning Point Brands Inc

Turning Point Brands, up ~190% since the beginning of 2024, is an old standby in the SCC portfolio, having originally been purchased back in Q3 of 2016. The investment thesis remains that the company enjoys the benefit of a steady, high-quality compound business model via its Zig-Zag and Stoker's brands, which should benefit from a tailwind in the long-term decline of traditional cigarettes. Stoker's FRE brand of smokeless tobacco is currently growing at an extremely high rate; per TPB's Q1 2025 results announcement, 'Modern Oral sales were $22.3 million, up nearly 10-times versus the prior year and nearly double the prior quarter.'

Turning Point Brands has been a significant contributor to our portfolio since inception, and we have seen strong performance from the company. The CEO, Graham Purdy, and his exceptional team continue to execute and outperform expectations. Although we have sold our position as it crossed into the long-term gain threshold, we would welcome the opportunity to own it again should the right price present itself. This reflects our confidence in the company's future prospects and the quality of its management.

Turning Point Brands has been a significant contributor to our portfolio since inception, and we have seen strong performance from the company. We exited our position as our remaining shares crossed into the long-term gain threshold, but we remain optimistic about the company's future. Graham Purdy, CEO of Turning Point, and his exceptional team continue to execute and outperform expectations, indicating that we would welcome the opportunity to own it again should the right price present itself.

Turning Point Brands (TPB) is mentioned as part of a portfolio that includes relatively recession-resistant businesses, particularly those selling nicotine products. The manager notes that they own TPB among other companies with solid insider alignment that are buying back stock, but does not provide a specific argument for or against the company’s future performance.