investment philosophy

We are a long/short equity fund that employs our capital around the globe to deliver absolute returns. 

On the long side, we teach and believe in a bottom-up, fundamental analysis value philosophy. We seek to gain a competitive advantage through focusing on small cap companies with less analyst coverage and more opportunities for deep mispricing with a significant margin of safety.

On the short side, we look to take a contrarian position and look for companies that meet several of our specific requirements:

  • Significant exposure to technological obsolescence
  • Weakening moats coupled with high amounts of debt and risk of default
  • Hard catalyst that will occur within 12 months of our initial investment
  • Accounting fraud or significant deception in accounting techniques
  • Consumer fads

With these disciplines, we hope to find investments with a favorable risk/reward profile so that we may preserve our capital and diversify our portfolio. Our short positions never make up more than 1-2% of our portfolio and no position makes up more than 7-8% of the fund. Our members are divided into eight industry sectors and become experts through focusing on industry trends and the underlying business models within their sector.