We strive to have a firm where the philosophy, the process and the incentives are aligned with long-term compounding of net returns to the investment partners
42KM
Proprietary cultural assessment framework helps find Enduring Compounders
Differentiated incentive structure aligned to long-term capital compounding
Clarity of focus: strong long-term net returns adjusted for risk
Patience and dedication to 5-7+ years time horizon
Founder's liquid net worth invested alongside the investment partners
Others
Cultural analysis either superficial or not in the toolkit
Incentives aligned to AUM growth
Competing objectives muddle investment decisions
Turnover to justify existence
Portfolio Manager and the mandate not always aligned
Investor Alignment
PRINCIPLES
01
Base fees are budget driven – they should adequately cover operating expenses, rather than being a profit center
02
Investment partners can select either a flat management fee or a lower base plus a performance fee
03
Performance fees only apply if an investment partner has realized an in-year and since-inception net return above a hard hurdle rate
04
We aim for low investment partner turnover and wish to reward those who stay with us by lowering their fees
