The business
- A sustainable advantage we can identify
- High returns on capital, during our holding period
- A long runway, funded from its own cash
Our vision
To deliver high absolute returns to a select set of aligned partners over a long period of time
We focus only on IRR, and are agnostic to style, sector and market cap.
How we think about absolute returns
We aspire to
- Double the portfolio every three years
- Be net buyers in a crisis
- Avoid loss of permanent capital
What we seek in every idea
The four things every idea must have
The people
- Honest with every stakeholder
- Competent and aligned
- Demonstrated delayed gratification
The change
- A specific change in the business, its industry or its ownership
- Shows in earnings within our holding period
- A reason the market has not priced it yet
The valuation
- We expect to recover our capital within three years, even if the thesis fails
- Protected by yield, asset value, or earnings already in hand at a fair price
- The valuation sets the position size
Aligned capital
Our own money is in the fund as anchor capital, alongside our partners’.
We do well when they do.
* This page describes how we think about investing. It is not investment advice, a recommendation, or an offer of any product.