Risk/Return Asymmetry

• Asymmetry occurs when upside is mismatched with downside, + we are getting paid more than is warranted for the risks involved — a rare but valuable inefficiency.​

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• Entering with low basis creates an option-like entry point with positive convexity + nonlinear, disproportionate gains.​

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• We tend to find asymmetrically mispriced opportunities in submarkets dominated by:​​​​

  • Extreme Fragmentation

  • Obscurity + Complexity

  • Hyper-Local Relational Dependencies (only when we have superior access/boots on the ground)

  • Limited Access to Capital Markets​

Rigorous Research Transforms Threats into Opportunity

• Markets swing between euphoria + panic, destroying wealth for the unprepared.

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• Deep-dive fundamental research can transform such threats + volatility into actionable opportunities.

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• Grounding in thorough, on-the-ground due diligence ensures investments stand on a firm bedrock + provides the conviction to do the unpopular (often, the most profitable).​​​

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Partnership is the Foundation of Every Deal

• Good deals are scarce, but good partners are scarcer. With a long-term view, we are driven to build our relationships with integrity + accountability, not the desire to win at any cost.

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• Conviction Counts.  We always make substantial co-investments with our partners. Putting our personal capital at risk is the clearest proof of our conviction, sharpening our focus + ensuring disciplined decision-making + risk management. 

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• Owners, Not Middlemen. We are not deal brokers who make money on fees. We are likeminded, long-term owners.​

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• Resilience During Volatility. Our skin in the game means we are committed to outlast challenging + volatile times.

Humility + Thought Diversity

• Sustained success requires the humility to challenge our views to respond to change dispassionately + decisively.

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• Thought diversity mitigates the risk of doubling down on our own unrecognized biases. ​Most investors fall prey to survivorship bias, focusing on their visible winners - typically the exceptions + outliers - rather than deconstructing the countless hidden misses, from which learnings are far more lasting. 

Risk Management + The Power of Inaction

• Continual risk management is not a “check the box” exercise, but a foundational principle designed to safeguard investments against avoidable risks.

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• While opportunity is occasional, risk is relative + ever-changing, + must be continually assessed and repriced.

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• Short-term thinking rewards speed and shortcuts, but enduring resilience requires inaction if we're not being paid adequately to take on risk, which can last for uncomfortably long periods of time.​​​​​​​​