- Responsible for new idea generation; portfolio construction; risk management; due diligence
- 25+ years overseeing concentrated small-cap portfolios, on behalf of the most sophisticated allocators in the United States
- Previously: Founder, Endowment Capital Group; Portfolio Manager, Downtown Associates; Analyst, W.H. Newbold’s Son & Company
- University of Pennsylvania, Wharton School, B.S. 1986
- Married to Isabella, 3 sons, 3 daughters, 2 dogs
Limited Capacity
- Our focus is on outperformance, not growing management fees.
- Less scale allows us to operate in the less-efficient parts of the market.
- Targeted client base means we have the right investors who can withstand short-term volatility to own long-term compounding businesses.
In-Depth Primary Research
- A manual, time consuming, arduous, yet simple process to build a 360° mosaic.
- Ask the right questions of the right people to uncover why significant market share gains are possible over an understandable time horizon.
- Our scuttlebutt seeks out customers, suppliers, distributors, industry experts and ex-employees.
Exploitation of Those with a Short-Term Orientation
- Our insight edges allow us to confidently make longer-term investments during periods of short-term uncertainty.
- We buy from sellers with imperfect information, short-term mindsets, and who rely on impossible market timing.
Investment Mission
We believe the greatest and most durable opportunity in equity investing lies in the following:
In-Depth Primary Research
Smaller Businesses
Long-Term Investment Horizon
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Highly concentrated portfolio of outstanding smaller and less liquid public companies
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Bought during a period of industry headwinds and transition
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Where our decision making is based on a unique insight edge
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Developed through a rigorous process of primary fundamental research focused on long term outcomes
Our mission is to develop insight edges that we may fully exploit through a concentrated portfolio of uniquely durable compounding businesses, maximally leveraging the greatest advantage of our partners: their long-term investment horizon.
Portfolio Characteristics
We seek out market leading, financially conservative, domestic public companies that have certain shared characteristics, making them “special” businesses. Typically, these companies uniquely solve problems for a large set of identifiable customers, operating in large markets with competitors who are structurally incapable of making the long-term decisions and reinvestments necessary to remain competitive. Our companies will have strong balance sheets and properly incentivized management teams with histories of value accreting capital allocations.
What You Will Own
Core portfolio of 8-12 durable and differentiated businesses delivering superior value to customers.
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Clear organic growth opportunities driving a long runway of growth and value creation
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Conservatively managed balance sheets eliminating the need to raise additional capital
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Taking share from structurally and irrevocably disadvantaged competitors
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Patiently bought during instances of temporary headwinds to achieve greater value, more upside potential, and avoid the permanent loss of capital that is possible when buying the stock of a company enjoying an unsustainable tailwind
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Diversified across industries, company lifecycles, and economic cycle risks to avoid having 10 variations of the same bet
Concentrated Equities
Owls Nest Concentrated Equities strategy typically holds 8-12 long positions of predominantly small capitalization companies listed on a US exchange. The strategy is designed for taxable investors who are seeking to maximize their after-tax returns.
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Concentrated Long Only
Owls Nest Concentrated Long Only strategy typically holds 8-12 long positions of predominantly small capitalization companies listed on a US exchange. The strategy is designed for non-taxed institutions with a perpetual time horizon or tax-deferred vehicles with an investment horizon measured in decades.
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