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Our Investments

We practice real-time active money management through a long/short strategy. On the long side, we teach and believe in a bottom-up, fundamental analysis value philosophy. We seek to gain a competitive advantage by 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 individual 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 nine industry sectors and become experts through focusing on industry trends and the underlying business models within their sector.

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