"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

  • Repeatable business model

  • Predictability in the path to value creation

  • Growing end markets

  • Increasing returns to scale

  • Long runway of high return on invested capital opportunities

  • Catalyst driving a changing dynamic for a multi year period

  • Growing competitive advantage

  • 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

  • 5% maximum portfolio loss on any individual business

SELL DISCIPLINE

  • Original thesis is proven wrong 

  • A more asymmetric investment opportunity comes along

  • Risk controls mandate cutting the position

For more details on our process, please see the below podcast or podcast transcript.