"It is easier to resist at the beginning than at the end." -- Leonardo da Vinci

 

We focus on our process to ensure a favorable long term outcome.

INVESTMENT CHARACTERISTICS

  • Superior business models

  • Increasing returns to scale

  • Growing competitive advantages

  • Growing revenues

  • Growing end markets

  • High and sustainable return on invested capital

  • Long runway to reinvest internally generated cash flows

  • Valuation at meaningful discount to future earnings power

RISK CONTROLS

  • 15-20 businesses with uncorrelated end markets

  • 5% average portfolio weighting

  • 10% maximum portfolio weighting at inception

  • 25% maximum end market portfolio weight

  • 5% maximum portfolio loss on any individual business

SELL DISCIPLINE

  • We adhere to a strict sell discipline. We sell when:

    • Original thesis is proven wrong 

    • A better investment opportunity comes along

    • Risk controls mandate cutting the position