A Disciplined Investment Approach

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We seek a substantially differentiated view of a company's trajectory of multi-year earnings and cash flows.

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We look for companies whose valuations doe not reflect the growth rates.

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We construct with thoughtful risk management.

Alpha Thesis

We believe:
Earnings and cash flows are primary determinants of stock prices

Persistent errors exist within forecast of future results

We identify and capitalize on meaningfully "misforecasted" businesses

“Misforecasted” Earnings Power

Structurally underappreciated growth trajectories

Exceptional Businesses

Durable and compounding competitive advantages

Monetize Insights

Maximize asymmetry of expected outcomes

Focus on inefficient asset classes

Forecast error

Universe
Size

Institutional Ownership

Sell Side
Coverage

Our bottom-up research seeks to identify companies we believe are higher quality relative to peers based on certain investment criteria where we possess a high conviction differentiated view of earnings and cash flows over a 3-5 year horizon. We buy these stocks at favorable valuations to allow us to monetize our insights and provide a margin of safety in case the thesis does not play out as expected.

Fundamental Process

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Understand the business model, industry dynamics, and competitive positioning of the target company

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Assess valuation based on our view of earnings trajectory and relative to peers

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Evaluate the company’s strategic vision, opportunities to reinvest capital to grow, and execution capabilities

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Assess management incentives and corporate governance to determine business alignment with minority shareholders

IDIOSYNCRATIC ALPHA

Learn more about Iα, the ultimate outcome of our investment process.
Suspension bridge. Cable-stayed bridge in the world. Sao Paulo city, Brazil, South America.

Our core capability lies in identifying great businesses with idiosyncratic opportunities to deliver meaningfully greater earnings power than is contemplated by the market. We construct portfolios to minimize unintended and unrewarded exposures, and to generate alpha primarily from stock selection. We believe that the emerging measure of “Idiosyncratic Alpha” (Iα) highlights the persistence and durability of our approach.

Disciplined Investment Approach

The Appropriate Combination of Quantitative and Qualitative Inputs allowing a nimble team to cover a broad universe and objectively surface ideas.

A Clear Alpha Thesis that guides our research and decision making.

Rigorous and Disciplined Risk Management ensures alpha is driven by stock selection and not unintended bets.

This process yields Concentrated yet Diversified Portfolios that we believe will generate meaningful excess return while controlling risk.

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