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.