Strategies

Our focused investment strategies. Each has a chip that appears on every stock pick we tag with it.

Value

Value Investing

Finding companies trading below intrinsic value through rigorous fundamental analysis.

At its core, this is rigorous financial analysis. Read the statements, estimate what the business is actually worth, and only buy when the price is meaningfully below that value. Price is what you pay; value is what you get.

What we want
  • Durable ROIC above cost of capital
  • Strong free cash flow and balance sheet
  • Capital-disciplined management
  • Meaningful margin of safety to intrinsic value
What we avoid
  • Story stocks and momentum chasing
  • Businesses outside our circle of competence
  • Leveraged recoveries with narrow survival odds
  • Value traps — cheap for a reason
High-Beta Quality

High-Beta Quality

High-beta names backed by real fundamentals — concentrated on 2–3 we know cold, sized for asymmetric upside.

High beta amplifies market moves — both ways. Pair that with real fundamentals and you get asymmetric upside in bull tape without the binary risk of pure speculation. The discipline is staying narrow: 2–3 names at a time, deep enough to size into drawdowns when the market sells them harder than the business justifies.

What we want
  • Beta > 1.3 against the S&P 500 (24-month)
  • Positive free cash flow, or clear path within a year
  • Revenue growth > 15% YoY, gross margin > 40%
  • Net debt / EBITDA below 3 — operational, not levered
  • Concentration: max 3 active names, sized for conviction
What we avoid
  • High beta with no earnings — pure narrative
  • Beta driven by leverage, not the underlying business
  • Names too illiquid to scale into on weakness
  • Diluting attention across more than 3 active picks
  • Buying after the rip — wait for the drawdown
Thematic

Thematic Investing

Bets on structural change. Identify the candidate universe, then down-select with value-investing rigor to 2-3 names with the right setup.

A thematic bet starts with a structural change in the world and looks for the businesses positioned to benefit. Step one is the universe of candidates. Step two is harder: down-selecting to 2–3 names with the right fundamentals, valuation, and unique fit to the thesis.

A. Primary thesis — the structural change

Current thesis: IT & web security. As AI capability accelerates, the offensive side of cybersecurity gets cheaper and faster. That asymmetrically increases demand for web, identity, and endpoint security. Several names in the space were dragged down in the broader SaaS-apocalypse drawdown, leaving quality businesses oversold against a tailwind that's structurally getting stronger.

B. Down-selection — value rigor on the candidates

Out of the 15–20 candidates surfaced under the thesis, we apply value-investing criteria to identify 2–3 stand-outs:

What we want
  • Consistent market-share gains — not one-quarter pops
  • Fair-to-affordable valuation — not richly priced for perfection
  • Uniquely situated for the thesis — leading on AI-driven attack defense, not reactive
  • Nimble operators when the thesis rewards speed; scaled incumbents when it rewards distribution
  • Real fundamentals — positive FCF or a credible path within a year
What we avoid
  • Names already priced for the thesis (consensus, no edge)
  • Big platforms that engulf every adjacent trend (security is one tab, not the business)
  • Pure-narrative plays — no margin, no share data, just story
  • Diluting attention across >3 active picks
  • Buying the rip — wait for the drawdown

Factors

Individual signals our strategies look for. A factor isn't a complete strategy — it's one input. The same factor can appear inside several strategies.

Insider Buying

Abnormal Insider Buying

Following unusually large, clustered, discretionary insider purchases — especially into weakness.