Superior investment opportunities reside in the difference between perception and reality. We believe an accurate and realistic view of the world and of human nature gives us a Philosophical edge.
We also believe that the understanding of microeconomics yields better investment opportunities than focusing solely on macro forces. Similarly, we rather focus on understanding the Capital Cycle than the Business Cycle. The Capital Cycle’s simple premise is that capital scarcity invariably leads to higher returns on capital. We see ourselves as “Capital Cycle Artists.” The Capital Cycle approach can be exploited with more conviction than the much-followed business cycle, and this gives us a Behavioural edge.
Capicraft is small, nimble, and flexible. And we intend to stay this way. This gives us the ability to truly go where we need to go to exploit investment opportunities and protect capital. We have no size constraints and can truly “fish where the fish are.” We can be patient in finding opportunities, swinging only when the “fat pitch” arrives. This gives us an Institutional edge.
Superior investment opportunities also reside in underfollowed or complex situations. Our ability to find, analyse and execute on these, gives us a very scarce Informational edge.