College dropout turned hedge fund manager Eric Khrom is up 47% this year. His latest investor letter lays out the drivers of his blockbuster performance.

• Khrom Capital is up nearly 47% through the first half of the year, a new investor letter states.
• The fund is run by Eric Khrom, who made the Forbes’ 2014 30-under-30 list.
• Big winners include Michaels, At Home, and LGI Homes, all of which the firm exited this year.

Several hedge funds such as Coatue and Rokos have struggled to replicate their 2020 success so far this year. Eric Khrom’s eponymous manager is not one of them.

Khrom Capital, which manages just over $100 million, is up nearly 47% through the first six months of the year after returning 60.8% in 2020 and 30.1% in 2019. The average hedge fund is up roughly 10% through the first half of this year, according to Hedge Fund Research, the best start to a year since 1999.

Khrom, a former college dropout turned Forbes’ 30-under-30 member, runs a concentrated book of just 13 companies on average, according to his latest investor letter. The target return for his investments is a tripling of value within five years of investing, his letter, dated July 14, reads.