We seek to identify and own a concentrated portfolio of high-quality, publicly traded businesses, with a durable competitive advantage, and multi-year growth opportunities ahead. These companies earn high returns on invested capital, have high organic growth rates, expand profit margins over time, and are run by excellent management teams. We employ a bottom-up, research-intensive, fundamentals-driven approach to identify such businesses.

 

Risk management is at the core of what we do. Therefore, we look for free-cash-flow-generative companies, with a strong balance sheet, that are well equipped to withstand short-term negative externalities. We like to buy these businesses at a discount to our estimate of their intrinsic value, giving us a margin of error. With any investment we make, the likelihood and the magnitude of the upside scenario are much greater than those of the downside scenario.

 

We invest across North America and Europe and focus on the Technology and Consumer sectors. The companies that we own are generally major beneficiaries of a strong secular tailwind in their respective industry. In addition, we use equity derivatives to hedge, protect, or enhance our returns.