Investing Approach
Casting a wide net
As a small, focused firm, we utilize a targeted approach that allows us to capitalize on opportunities in all corners of the market; places where large investment funds often can’t reach. Liquidity restraints, investment mandates, and limited strategies are all underlying reasons large investment funds can’t participate in some of these more unique opportunities. With a larger investable universe and freedom to look wherever opportunities present themselves, we have a much greater ability to maximize potential returns.
aligned incentives
We take the responsibility of managing others hard-earned capital seriously and have all of our investable net worth invested alongside our clients.
DUe Diligence
Whether it’s reaching out to management teams, business partners, or other keen-eyed investors we spend the majority of our time researching potential investment opportunities or continually re-evaluating current positions. While we may collaborate with other investors to evaluate opportunities or share ideas, our research is conducted independently and we don’t rely on typical sell-side research reports.
concentration
In order to outperform, you can’t do what everyone else is doing. We believe finding the most asymmetric risk/reward opportunities and concentrating in those is the best portfolio composition to outperform over the long-term. Also, this means our holdings should correlate more closely to the business fundamentals and performance of our holdings rather than the overall market.
Accounting knowledge
Accounting is the language of business. With the firm’s managing member having a CPA background, we have the tools to dive deep into the financials of a business.
Passion
We have a passion for learning about businesses and trying to figure out what they’re worth. We believe investors with a true passion are much more likely to succeed over the long-term, as any strategy or approach will go through periods of underperformance or lack of opportunities and it won’t always be easy to stay the course.
“The strategy of putting all your eggs in one basket and watching that basket is less risky than you might think.”