Investment Process
We seek to identify unique, undiscovered, smaller companies and special situations that are mispriced to form a high-conviction, concentrated portfolio. We seek new opportunities on the smaller end of the market capitalization spectrum. Our goal is to hold our investments for the longer term to allow our assets to compound over time.
Concentrated Portfolios with a Long-term Focus
We form high conviction, concentrated portfolios (typically 15-20 names). With each new investment, we endeavor to hold our position for the longer term (typically 3-5 years). We believe our long-term focus allows us to filter out short-term market “noise” and concentrate on owning great companies regardless of where we are in the business cycle.
Identify Unique Opportunities
Wall Street has limited coverage for smaller companies. This creates inefficiencies and opportunities for alpha creation. Our goal is to identify investment opportunities that traditional screens don’t find. We then evaluate the opportunities using a combination of qualitative and quantitative analysis that differentiates us from other firms.
Rigorous Fundamental Analysis
We perform extensive research and analysis in sectors that we know well and where we can leverage our past business experiences and apply those insights to new opportunities.
We have multiple tools to assess the financial health of the company and we use those metrics to extrapolate a valuation. We are focused on the companies, the inherent business fundamentals, and opportunity set ahead of them.
Risk Controls & Management
We construct a portfolio where position sizes and assessment of correlations between holdings allows us to manage risk.
