Investment Philosophy

Risk Control - Our primary goal is not to maximize performance at all times, but to build an exceptional track record of superior risk-adjusted return in the long term. For this, our priority is to avoid excessive losses along the way.

Focus on a well-defined circle of competence - We believe that by restricting our investment universe to a sub-segment of the market, where we maintain an analytical edge, we can generate consistent returns for our investors.

Extensive proprietary research - The strength of our analysis depends on the quality of the information that supports them. We believe in the accumulation of differentiated knowledge through proprietary research. Our team is constantly looking for evidence and confronting it with data from different sources.

Focus on intrinsic value and margin of safety - We focus on obtaining a thorough understanding of the fundamentals and risks of the companies in which we invest. We look for margin of safety in our investments, selecting stocks that trade below their intrinsic value.

Long-term approach - Our investments are based on a horizon of 3 to 5 years. We believe that with a medium to long-term approach we can benefit from the convergence of market prices to intrinsic value over time.

Search for positive asymmetry - We look for investments with asymmetric return profile where upside potential is higher than downside. Investing in "good assets" irrespective of their price may be a high-risk attitude with a negative asymmetry, since assets known to be "high quality" are generally priced as such, making the downside probability larger than the upside.

Out-of-consensus view - Superior risk-adjusted returns can only be obtained through the identification of pricing inefficiencies in which the price of an asset diverges from its intrinsic value. The identification of such opportunities depends on the adoption of a view that differs from market consensus.

Humility and self-criticism - In environments where uncertainty plays a major role, success by luck can be confused with competence in the decision-making process. We believe that a solid investment process depends on the ability of a team to humbly analyze the quality of its decisions, its mistakes and successes over time in search for self-knowledge and constant improvement.