Our Philosophy
- Investing in innovative companies creating change builds the most value over time.
- Investing in innovative small and mid-sized companies allows us to take advantage of the most inefficient segment of the market.
- Investing in innovative companies that have demonstrated financial discipline provides a margin of safety.
- Concentrated portfolios offer the best opportunity to outperform the market.
We believe that investing in innovative companies that create change builds most value over time.
Our strategy
A competitive advantage
Repeatable revenue growth
A superior margin structure
An effective management
Robust reinvestment opportunities
Our investments go through a rigorous process prior to a decision to purchase a position:
Initial Screening
- Search for consistent revenue growth, margins, and returns on capital.
- Focus on technology, healthcare, and consumer sectors.
Initial Research
- Evaluation of industry dynamics and competition.
- Evaluate competitive advantage, growth prospects and margin structure.
Deep Research
- Understand the long-term vision and elements of execution.
- Evaluate the management team and if the culture is effective.
- Understand the ability to generate cash and prospects for reinvestment.
Decision Process
- Determine if the company is worthy of ownership.
- Assess if company trades at discount to intrinsic value.
- Consider Red Team scenarios.
- Determine position size based on evaluation of range of outcomes.
Contact Us
Arrowside Capital believes that investing in innovative companies with demonstrated financial discipline creates the most value over time. The combination of great conditions, plus great management behaviors produce the most intrinsic value growth over the long-term.