Sometimes you need a stormy sea to find out who is really a shark? ๐ฆ
Today we have the craziest story you'll hear about a battle between a shark and artificial intelligence algorithms - who do you think won? ๐
$RXO ๐ค
It all started last weekend ๐
February 12 โ๏ธ
A small company named Algorhythm Holdings ($RIME) published a professional document about its new platform, SemiCab. ๐ก
The data presented there seemed almost imaginary: ๐ฅ
- The system is capable of reducing by 70% what is called "Empty Miles" (empty truck trips without cargo). ๐ก
- With the aim of reaching over 90% utilization of truck capacity. ๐ฅ
And thereby allowing companies to increase their shipping volumes by 300% to 400% - without adding even one employee (!) ๐
This technology performs real-time transportation network planning, coordinates cargo between shippers and carriers automatically and thereby - eliminates the need for extensive manual labor. โญ
And this is exactly where the ''brokers'' of the logistics and transportation world come in, including RXO. ๐ฉ
RXO is one of the largest providers of freight brokerage services in the world. ๐
Its business model is "asset-light", meaning it connects customers who need to transport cargo with independent carriers using an advanced AI-based technology platform. ๐ค
The data from $RIM seemingly causes a company like $RXO to be weakened by 'disruption' ๐ซ
And the stock market's reaction was accordingly - sharp - and full of panic. ๐ช
The sector experienced that day a free fall in some of the main stocks:
C.H. Robinson ($CHRW): a drop of 20% to 24%. ๐ฝ
$RXO stock: a decline of more than 20%. ๐ฝ
Landstar ($LSTR) stock: a decline of 17%. ๐ฝ
Expeditors ($EXPD) stock: a decline of 11% to 16%. ๐ฝ
The Russell 3000 Trucking index recorded a decline of 9.4%. ๐ฝ
This is the index's sharpest daily decline since the imposition of historical tariffs last year. ๐จ
But while everyone was panicking from the declines - the Boston-based hedge fund MFN Partners, managed by Farhad Nanji, actually decided to take advantage of the declines - and buy more shares! ๐
Nanji serves as a director at RXO, which makes the fund an "insider" in every sense of the word. ๐ค
The fund is known as a "concentrated" investor; it does not spread money across hundreds of stocks, but rather takes a huge position in companies they believe in. ๐
They are experts in the transportation and logistics sector (they previously invested huge sums in Yellow Corp and XPO as well). ๐งฎ
Pay attention to the date โฌ๏ธ
On February 12, the fund bought $RXO shares for $6,390,000 ๐
And thereby increased its position by an additional 2% - and now holds no less than 17% of the company. ๐ต
The fund did not wait a moment - and without fear - bought the stock at the peak of panic. โ
And pay attention to the purchase price:
$12 per share ๐ต
This is the daily bottom price - to the cent! ๐
This is what a precise engagement looks like with the precision of a surgeon's knife. ๐ฌ
In fact, the fund accumulated profits of over 23% on this purchase in less than a week. ๐ฐ