HOOT 30
Focused, long-term investing in special businesses
The Hoot 30 is our internally managed equity strategy. We aim to identify and own around 30 special businesses capable of producing special results, with the goal to compound client capital at a superior rate while taking prudent risks. To do this, we perform fundamental research to find companies that we believe are capable of durably growing the value of their business over long periods.
What makes a special business?
Many businesses can create value and capture some of that value. Special businesses can sustain the value creation cycle for long periods. A clear understanding of how and why a business can create, capture and sustain value drives our research and investment process. These (mostly) qualitative assessments are, in our belief, the key to finding companies able to generate above-average growth in business value that ultimately show up in the easier to identify, quantitative hallmarks of great businesses.
Create
- Solve meaningful problems with a strong value proposition
- Maintain an evolving portfolio of critical assets and capabilities
- Critically enable large downstream profit pools
Capture
- Business model capable of attractive per share economics
- Process or are developing a durable structure advantage
- Benefit from a supportive industry structure
Sustain
- Access compelling reinvestment opportunities across horizons
- Management that nurtures a long-term oriented culture
- Operate with financial prudence and fanatical execution