Kase Capital March 2014 Investor PresentationVW Staff
Whitney Tilson‘s Kase Capital March Investor presentation
OBJECTIVE Produce superior long-term absolute and relative returns over multiple market
cycles. Long-term target: Net returns of 15%+ per annum. Short-term target:
Exceed S&P 500 by 5-10 percentage points per annum.
STRATEGY We have a disciplined, long-term-oriented opportunistic value approach. We do
rigorous fundamental research and analysis to identify securities that we believe
are trading far from their intrinsic value and that, in most cases, have a catalyst to
realize that value.
PORTFOLIO We are long-biased, market-cap agnostic and run a concentrated portfolio. We
typically have 12-15 meaningful positions on the long side and a larger number of
significantly smaller positions on the short side.
TRACK RECORD In 15+ years since inception on 1/1/99, the Kase Fund has appreciated by
162.1% (net to investors) vs. 100.2% for the S&P 500.
ASSETS UNDER $77 million.
INVESTMENT Kase Fund, commenced 1/1/99; Tilson Offshore Fund,
VEHICLES commenced 12/1/02; Kase Qualified Fund, commenced 7/1/04.
PRINCIPAL Whitney Tilson, Managing Partner and Portfolio Manager.
ALIGNMENT OF The Principal has invested significant portions of his personal wealth,
INTERESTS and that of his friends and family, in the firm and its investment funds and
CIRCLE OF • Do we understand this company and its indus COMPETENCE • Can we make reasonable projections about th
- We try to keep it simple. Our best investme explained in a short paragraph.
- We rarely invest in tech/biotech, emerging momentum stocks, etc.
COMPANY & • Company evaluation: Is this a good business
INDUSTRY sustainable competitive advantages? High returns on capital? Solid, steady growth? Healthy balance sheet? Strong free cash flow?
- Often involves company visit, management an
- Industry evaluation: Is this a good industr
What are the competitive dynamics?
- We seek an informational edge, often via pr scuttlebutt research.
MANAGEMENT • Are they good operators?
- Are they good capital allocators?
- Are they trustworthy and shareholder friend
VALUATION • Is the stock really, really cheap? Why?
• What is our variant perception?
Full presentation below