About Us

Overview

We believe that the day to day movements of markets and the valuations of securities to be highly inefficient as a result of the emotions of the people participating in markets and trading securities. Markets tend to set a dear price for the comfort of investing in familiar businesses, popular industries, fast-growing companies, liquid securities, and steady streams of earnings, dividends, and/or coupons. Conversely, market participants often overlook and undervalue industries that are unfashionable, securities that are small, illiquid, or not covered by brokerage firms, investments where there exists complexity or uncertainty on the outcome of events, the debt (and occasionally equity) of firms subject to bankruptcy proceedings or risk, and companies that are in distress, experiencing setbacks, stagnating, or declining. We believe that investors often confuse investments that are characterized by having uncertain outcomes, complex analysis, or unpopular dynamics with investments that are unsafe to own or unattractive in risk.

In order to profit from these core beliefs, we will build a portfolio that concentrates on an identified subset of systematically underfollowed investments and inefficient markets. Our goal is to generate positive returns from both long and short investments as opposed to employing a relative value or market hedging strategy. Our investment process involves in-depth analysis and valuation work at the company level while being cognizant of underlying industry dynamics. Our deep value discipline in combination with our focus on underfollowed securities gives us our edge. Presiding over all of the investment and portfolio management decisions is a rigorous risk management discipline focused on taking intentional and defined risks at the position, industry, and portfolio level.