We are a SEC Registered Investment Adviser founded in 2018 and headquartered in San Francisco. We manage pure alpha and long-biased strategies that seek to exploit the substantial dispersion in business quality and stock performance of U.S. small cap equities. We are a Minority Business Enterprise certified by the NMSDC.
Value Proposition
We seek:
In our Pure Alpha Strategy: to deliver equity-like returns with low volatility and minimal correlation to markets or other asset classes.
In our Enhanced Long Strategy: to deliver meaningful, excess returns over equities on a consistent basis.
Additionally, for taxable investors we expect:
The majority of realized gains will receive long-term treatment for tax purposes.
Meaningful periods of deferral.
Strategy
Fundamental Approach
Our investment strategies are predicated on a simple belief that a portfolio of extraordinary, high-quality businesses should outperform an index of mediocre businesses over both the near and long-term. In fact, investors underestimate the attractive portfolio effect of investing exclusively in high quality small cap stocks. The foundation of our approach is a deep understanding of industry structures and business strategy.
Systematically Applied
A disciplined systematic process underlies everything we do. Our methodology, tracked and tested since 2005, is structured to unearth alpha and optimize for risk-adjusted returns.
Thoughtfully Designed
Through portfolio construction, risk management and trading, the strategy is designed to generate meaningful and consistent alpha while overcoming the illiquidity and volatility constraints of U.S. small cap equity investing.
Mission & Beliefs
Our Mission
To build long-lasting relationships with our investors based on trust, integrity and exceptional performance.
To be a premier investment firm comprised of talented professionals who work together in a collaborative environment toward a common vision.
Our Beliefs
We put the interests of our investors first and recognize that we work on their behalf.
We hold ourselves to the highest professional and ethical standards.
We believe investors should only pay carried interest for outperformance or alpha.
We promote a culture of transparency, collaboration and shared rewards.