Strategy
The Stonerise Capital investment approach is characterized by:
- Primary focus on North American small-to-mid cap equities;
- Long-term investment time horizon, underwriting a 2-4 year holding period;
- Concentrated portfolio, with typically 8-12 core long positions (>5% portfolio);
- Focus on high quality businesses, while maintaining a rigorous valuation discipline;
- Fundamental business analysis, with focus on sustainable growth and a strong cash flow orientation;
- Engage in constructive activism, where appropriate, working collaboratively with management and seeking to improve underlying business performance;
- Long biased;
- Limited fund-level leverage (average gross exposure <100% since inception);
- Tax-efficient capital gains (~70% of historical gains have been long-term in nature);
- Founders have been partners together for 19 years executing the same strategy and have deep experience in both public and private investments.