Investment opportunities that offer high return potential and low risk are obviously desirable and therefore hard to find.

We spend a lot of time searching for these unique investment opportunities and have a rigorous research process in place to maximize the likelihood of finding them. More importantly, we have the patience and focus to wait for them. 

As a result, we typically own 5 to 8 businesses at one time and make only 1 new investment per year. We believe in diversification, but we also believe in focus. After all, why would you invest is your 16th best idea?

What does good look like:

• A strong managementteam with a proven track record and significant ownership in the business
• A healthy balance sheet - we are prepared to hold our positions for years so each business must be able to weather the ups and downs of the economy
• Deeply undervalued – at least worth 2x current price, ideally 5 to 10x
• Relatively small businessess – typically under $500m in market cap – are more likely to be under-followed, undervalued and have more room to grow
• A proven business model and a strong market position
• A simple business with earnings that are easy to understand and project

Other aspects of our strategy 

• Long only - we don't short sell stocks
• We focus on equity investments, but may occassionally consider bonds, warrants

    No leverage
    Concentrated