The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.— Daniel Boorstin
Parsing for Unique Upside
You won’t find profoundly rare gems where everyone else is searching. So we start with things that might be complex or event-driven. Our portfolio is comprised of small to very small public companies that are unknown or unappreciated by the current market.
- We love to go deep in understanding the business.
No matter how many slides are in a PowerPoint it won’t really give you a full understanding of the company. We like to include, management, customers, competition, and colleagues in our analysis.
- It all has to be distilled into numbers. Stories are great and help to get investors interested but we’re looking for investments that can unlock value with accelerating growth and expanding margins.
- Collaborate and share our work.
Publishing your work is one of the best ways to hone your analysis and make your conclusions stronger. We work with our own network during the research process and then share our work widely after it’s complete.
- Patient & helpful capital. Our best investments have all been of a multi-year duration. We’re looking for long-term 5-10x opportunities, not a 10% short-term gain. Favorable treatment of long-term gains is another big motivation to work closely with management to help them be successful.
- Build new connections, tools, and services.
Our network grows daily – both in size and fit with our portfolio companies. You can learn more about us by signing up for our investment letter and contacting us.