Longmark, LP
Seeks above average long-term capital appreciation by investing in a select portfolio of exceptional businesses, purchased at attractive valuations and held for the long-term.
Compounding machine portfolio
We utilize a systematic process that eliminates behavior bias to invest solely in what we believe are exceptional businesses that generate high returns on shareholder capital with durable competitive advantages.
Attractively priced stocks
We acquire such businesses when priced at an attractive discount to intrinsic business value.
Long-term capital appreciation
We hold positions for the long-term, allowing partner capital to compound over time.
Investment Philosophy and Process
Following a repeatable, systematic process guides our investment decisions:
- Focus exclusively on exceptional businesses
- Purchase at an attractive discount to intrinsic business value
- Pursue an unconstrained approach
- Concentrate portfolio in the most compelling opportunities
- Allow intrinsic value to compound over the long-term
Building a Compounding Machine Portfolio
Companies must possess certain elements to be considered a portfolio candidate:
- Predictable revenues and cash flows in any economic cycle
- Sustainably high cash flow returns on invested capital
- Exceptional gross profit yield on total assets
- Leader or improving in corporate ESG initiatives
- Clear runway for long-term growth
- Robust opportunities to reinvest at high rates of return
SNAPSHOT
Approach: Active, bottom-up
Benchmark: MSCI World NR Index
Portfolio inception: February 2021
