Strategy
Arrowside Capital Innovation Strategy
A modern strategy for a changed market
Today’s market isn’t playing by old rules, and neither are we.
We invest in a concentrated portfolio of capital-efficient, high-ROIC growth companies—businesses scaling through intangible assets like software, brand, data, and AI. These companies generate strong cash flows and reinvest at high rates to compound value over time.
Our strategy is designed for this era:Our strategy is designed for this era: persistent inflation, technological transformation, and a winner-take-most economy where a few dominant players driver the lion’s share of returns
Transparency You Can Trust
Review our fact sheet and quarterly commentary for a full view of our strategy, current holdings, and the thinking that drives our investment decisions.
The Arrowside Way
Legacy Small-to-Mid Cap
- Forced into style boxes.
- High turnover to meet category expectations.
- Underexposed to secular growth areas like. technology; overexposed to structurally challenged sectors.
- “Sell and replace” mentality limits compounding.
Arrowside Small and Mid-Cap Approach
- Unconstrained by style-box rules.
- Concentrated in businesses that reinvest and scale through intangibles.
- High active share.
- Designed to hold and compound, not rotate.
Our Edge? What We Don´t Do
We’re not trying to keep up with the market.
We’re trying to beat it
by doing things
differently.
- We don’t chase hype or trade headlines.
- We don’t buy companies just to match a sector weight.
- We don’t rely on traditional valuation metrics that ignore intangibles.
- We don’t invest in businesses that can’t survive without outside funding.
- We don’t back unprofitable companies hoping scale will magically fix the model.
- We don’t sell based on short-term stock moves.
- And we definitely don’t follow the crowd. We go where long-term compounding is misunderstood and overlooked.
