Long Only

We invest in mid- to large-cap stocks (greater than $2.0 billion in market value) with the goal of achieving attractive long-term risk-adjusted returns relative to the S&P 500.  While portfolio construction will vary based on opportunity set, we are generally attracted to the following characteristics:

  • Long growth runway / high returns on invested capital

  • Strong management team aligned with shareholders

  • Limited leverage or demonstrated ability to pay-down debt quickly

  • Absence of uncertainties where our ability to handicap outcome is limited

While we use the S&P 500 as a benchmark, we are focused on outperforming the market through a cycle (i.e. 5-10 year horizon) and are less concerned about relative returns ​over shorter time horizons.

Long Short Small-Cap

We invest in small-cap stocks (less than $2.0 billion in market value) with the goal of achieving attractive-risk adjusted returns on an absolute basis.  Our strategy frequently overlays a special-situations / event-driven framework in our analysis.  Potential events include:

  • Merger arbitrage

  • Pro forma entities (acquisitions, dispositions)

  • Managerial / strategy change

We believe we are competitively advantaged in this strategy because many institutional investors cannot invest in small-cap equities, and of those who can, many may not have a special-situations investing background.