Since 2004, we have been engaging in contrarian opportunism across a variety of asset classes and industries.
We seek investment opportunities that provide an asymmetric risk-reward profile. These opportunities generally present themselves when exogenous events corrupt the market discovery process in a specific industry or company. When we believe to have identified such events, we deploy our capital swiftly with the goal of obtaining maximum exposure.
Our Disciplined Investment Approach
- Contrary to conventional wisdom, we believe that volatility and risk are not correlated. In fact, they generally run inverse when viewed through the prism of long-term capital allocation.
- We avoid investments in unstable geopolitical environments where the risk almost always outweighs the potential reward.
- We tend to focus on an entrance strategy rather than exit strategy.
- We pay little attention to daily market fluctuations or macro headlines when assessing the long-term intrinsic value of an asset or security.
- We always conduct thorough internal fundamental analysis before deploying capital.
- We tend to always purchase a perpetuity option at below potential intrinsic value.
- We believe that "Black Swans" or "Tail Events" are more common than academic models imply. As such, we always focus on capital preservation and return of capital rather than return on capital.
- We proudly embrace Technical Analysis and believe it is not the enemy of the value-investor when utilized for entries and exit points.
- We believe short-selling to be an important strategy for generating risk-adjusted returns.