The Fund attempts to take great long ideas and combine them with well researched short ideas to deliver exceptional returns.
The Kinsman Oak Equity Fund uses an opportunistic value-oriented investment strategy. The Fund is concentrated in best ideas because mispricing events happens infrequently and extensive, in-depth fundamental analysis is required. These opportunities can appear in any sector, so a flexible approach is ideal for exploiting inefficiencies. We apply original thinking when forming unique investment theses, do not rely on sell-side reseach and avoid groupthink.
INVESTMENT STRATEGY
BOTTOM-UP STOCK SELECTION
ALL POSITIONS ARE INTENDED TO GENERATE DOLLAR RETURNS (NO PAIR TRADES OR BENCHMARK HUGGING)
FOCUSED ON PERFORMANCE RATHER THAN ASSET GATHERING
LONGS: CORE COMPOUNDERS
STRONG ECONOMIC MOAT AROUND CORE BUSINESS STRENGTH OF ECONOMIC MOAT, HIGH MARGINS, PRICING POWER, SUSTAINABILITY OF COMP. ADV. RECURRING REVENUES, WATCHING COSTS, NETWORK EFFECTS, SCALABILITY
LONG RUNWAY FOR FUTURE GROWTH POTENTIAL ANALYZE SOURCES OF PREVIOUS GROWTH AND EVALUATE WHERE FUTURE GROWTH CAN COME FROM SECULAR TAILWINDS, MARKET SHARE GAINS, EXPANDING INTO ADJACENT MARKETS, ETC.
ABILITY TO RE-INVEST BACK INTO THE BUSINESS AT A HIGHER RATE THAN COST OF CAPITAL CAPITAL ALLOCATION IS A KEY COMPONENT OF SUCCESSFUL LONG-TERM COMPOUNDERS
VALUATION RISK IS MOST IMPORTANT FOR CORE COMPOUNDERS.
LONGS: SPECIAL SITUATIONS
FUNDAMENTAL RISK IS MOST IMPORTANT FOR SPECIAL SITUATIONS.
