Our Investment Philosophy
Four core principles that guide our investment decisions and drive our success
Fundamentals Research Driven
Bottom-up, research-driven investing with a focus on free cash flow generation and balance sheet strength
Over the long run, investment returns mirror the compounding of earnings
Numbers over narratives
01
Investment Horizon
Buy and hold investing approach
Approach a stock investment as if acquiring a fractional stake in a business
Hold conviction through market volatility: Buy right, sit tight
02
Invest in the Best, Not the Rest
Maintain a concentrated portfolio of 12-15 exceptional companies across global markets
Quality over quantity - we prefer to own our best ideas rather than diversify into mediocrity
Flexibility to increase holdings during market dislocations and extraordinary opportunities
03
The Risk Reward Payoff Equation
Expected returns have to compensate for the risk or volatility taken
Focus on attractive entry valuations vs. the long term intrinsic value of the business
Analyze: What information is already discounted into current valuations?
Disciplined sizing and risk management aligned with conviction
04
Our 6Ms Framework
The Partnership's investment framework is anchored in six core pillars, outlined below, that guide the evaluation and selection of investment opportunities. The Manager will use these criteria and guidelines when assessing potential investments, but may also invest in companies that do not satisfy all of these parameters.
Management
Trustworthy, talented, and experienced leadership teams
Proven track record of value creation, capital allocation, and strategic execution
Opportunity for active engagement in driving corporate change
Alignment of management incentives with shareholder interests
01
Moat
Strong brand recognition and customer loyalty
High switching costs for customers or suppliers
Network effects that reinforce market position
Proprietary technology, patents, or trade secrets
02
Margin of Safety
Market valuations at meaningful discounts to intrinsic value
Assessment of cyclical vs. structural earnings
Protection against downside risk through attractive entry prices
Clear understanding of worst-case scenarios and stress points
03
Market Size
Large, expanding addressable markets with growth potential
Resilience of demand across economic cycles
Untapped customer segments and emerging geographies
Fragmented industries offering consolidation opportunities
04
Metrics
Strong balance sheet and cash flow generation capabilities
Consistent profitability and return on invested capital
Healthy leverage ratios and manageable debt levels
Efficient working capital management and cost discipline
05
Market Moving Catalysts
Transformative product launches and strategic market expansions
Asset divestitures and portfolio optimization initiatives to unlock value
Earnings inflection points and margin expansion opportunities
Critical regulatory approvals and policy changes