A DIFFERENTIATED APPROACH
TO CAPITAL ALLOCATION

A unique blend of opportunistic and contrarian equity investing.

A Shift in Strategy

The edge in active management is understanding that during times of populism, money flows through government rather than capital markets. Demand-side economics and rebalancing distribution play a significant role. Therefore, it's important to identify sectors where government spending is directed, such as infrastructure, healthcare, energy policy, and defense, as those areas are likely to see increased funding and better company performance. Additionally, an inflationary environment often leads to protectionism and deglobalization, reversing the trends of globalization seen in the past 40 years. This can result in increased global conflicts and a focus on domestic demand. Defense and onshoring should be considered in this context. Residential real estate, particularly starter homes, may experience increased demand due to support from the government and the growing household formation of millennials and younger generations. Broad trends should be taken advantage of by understanding where the money is coming from and where it's flowing to. It's crucial to focus on fundamental factors again, as opposed to relying solely on past performance. Growth versus value trends are expected to reverse, and companies will need to generate their own cash flows to drive future returns. Luxury assets that have performed well in the past may not fare as well in the next 40 years. Relative value and identifying significant opportunities should be a focus within this framework.

With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future.

-Carlos Slim Helu

The stock market is filled with individuals who know the price of everything, but the value of nothing.

-Phillip Fisher

In investing, what is comfortable is rarely profitable.

-Robert Arnott

It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.

-George Soros

Resilience and Growth

We look for several areas that can provide avenues for speculative returns, while keeping cycle dynamics in mind.

Expansive Coverage

Our searchable universe is accelerated by proprietary data aggregation tools. Covering every sector, all major exchanges and numerous independent research outlets.

Eye on Capital Allocation

In-house we focus our outgoing capital on high value, high conviction areas. Both in research dollars and investments. We look for capital partners to do the same over the long run.

Micro Ebbs and Macro Flows

The micro will always feed into the macro and vice versa. Through pairing well established micro trends with large cycle macro moves we find repeatable outcomes.

Builders Mentality

We have the flexibility to deploy capital with a long time horizon, supporting efforts with high technical risk, long build cycles, and demand for significant scale to achieve key objectives.

We take a system-level, alterative data led approach to reimagining the large, inefficient systems of production that create the opportunities of tomorrow. We focus on efficiency by finding those who are designing, building and operating businesses that enable a 10x+ improvement in the energy, cost, time, and value of partners and shareholders. Our process aims to generate long term value and impact by partnering with high-quality stand alone businesses that will positively impact customers while creating significant economic value for shareholders. We aim to identify technical, economic, and marketplace transitions that create opportunities for systemic evolution. Connecting the dots means combining the right sets of tools needed to solve a problem, each of which may otherwise be confined to their own individual discipline. We look for Foundry opportunities that define several theses, conduct multidisciplinary R&D, develop prototypes and proofs-of-concept, and eventually define feasibility metrics, timelines, and financial models that can build a transformative business.

Values

Pursuing daring dreams takes time, persistence, and tenacity. In a world of abundance and choice, we value working with teams and investors who have the courage to navigate near-term failures, make collective sacrifices and remain committed to a mission. Realizing success with long-term bets requires short-term operating discipline. Actively managing finite resources, changing failing strategies, and avoiding costly distractions is core to realizing value from these long-range efforts.

Much like evolution, business success is often predicted by speed of change, not by the accuracy of each change. Fail, learn, adjust course rapidly and repeatedly to survive and thrive. The best companies are founded many times over as they continually reinvent themselves. We want management teams to think and act like a founder, openly and transparently questioning assumptions, driving outcomes, and being held to account. We don’t know what we don’t know until we know that we didn’t know it. Appreciating this insight leads to an openness to new ideas, a curiosity about what’s possible, and a hunger to explore and learn what may be possible. These traits drive any successful organization’s evolution, even our own.

News, updates and insights

Insights gathered from decades of information, we’re bringing focus to important and overlooked areas.

Lewisberry, PA 10011