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 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