Investment Strategy
A disciplined approach to generating long-term returns through fundamental research and rigorous analysis.
Our Approach
At TMR Capital, we believe that disciplined fundamental research and rigorous analysis are the keys to generating superior long-term investment returns. Our investment philosophy is guided by four core principles:
Fundamental Research
We conduct exhaustive research to understand business fundamentals, competitive advantages, and long-term growth potential. This includes analyzing financial statements, industry dynamics, management quality, and competitive positioning.
Valuation Discipline
Our investment decisions are guided by a strict valuation framework that helps identify opportunities with favorable risk-reward profiles. We focus on intrinsic value rather than short-term market movements.
Long-Term Focus
We maintain a long-term investment horizon, which allows us to look beyond short-term market noise and focus on the fundamental drivers of business value. This approach helps us identify and capitalize on market inefficiencies.
Risk Management
We employ rigorous risk management techniques to protect capital while positioning portfolios to generate long-term returns. This includes diversification, position sizing, and continuous monitoring of portfolio risks.
Investment Strategies
Long Only Strategy
Our Long Only strategy focuses on investing in high-quality businesses with sustainable competitive advantages, strong balance sheets, and capable management teams. We seek companies that can compound capital at attractive rates over the long term.
The strategy employs a concentrated approach, typically holding 15-25 positions, allowing us to focus on our highest-conviction ideas while maintaining adequate diversification.
Long Only
Long/Short
Long/Short Strategy
Our Long/Short strategy aims to generate alpha through both long and short positions. The strategy combines our fundamental long selection process with rigorous short identification to create a portfolio designed to generate returns in various market environments.
By maintaining the ability to profit from both rising and falling securities, the strategy seeks to provide more consistent returns with lower overall market exposure and reduced volatility compared to long-only approaches.
Our Investment Process
Idea Generation
Our investment ideas come from various sources, including industry research, network of contacts, and systematic screening. We look for businesses with strong competitive positions, attractive growth prospects, and reasonable valuations.
In-Depth Research
Once we identify a potential investment, we conduct exhaustive research to understand the business, industry dynamics, competitive advantages, and growth opportunities. This includes analyzing financial statements, industry reports, expert interviews, and management meetings.
Valuation Analysis
We employ various valuation methodologies to determine the intrinsic value of a business. Our analysis includes discounted cash flow models, comparable company analysis, and historical valuation metrics. We focus on the relationship between price and value to identify attractive investment opportunities.
Portfolio Construction
We build portfolios based on our highest-conviction ideas while maintaining appropriate diversification. Position sizes are determined by our assessment of the opportunity, risk profile, and overall portfolio considerations. We continuously monitor and adjust the portfolio as market conditions and company fundamentals evolve.
Risk Management
Risk management is integrated throughout our investment process. We carefully consider position sizes, sector exposures, and market correlations. We also maintain a disciplined sell process based on valuation, fundamental changes, or the identification of more attractive opportunities.
Performance Updates
For our latest performance updates and market insights, please review our quarterly commentaries.
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Miami, FL
800.407.8146
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