About Us
Focused Capital LLC is an intrinsic value, long/short equity manager founded with the belief that asset prices have never been more disconnected from their intrinsic values than they are today. We believe a long/short equity fund is best positioned to capture alpha as asset prices return to their intrinsic values.
"The task is not so m
Focused Capital LLC is an intrinsic value, long/short equity manager founded with the belief that asset prices have never been more disconnected from their intrinsic values than they are today. We believe a long/short equity fund is best positioned to capture alpha as asset prices return to their intrinsic values.
"The task is not so much to see what no one else sees, but to think what no one else has thought about that which everyone sees."
- Arthur Schopenhauer
Negative interest rates are a sign that the current economic system is straining. The price of money is broken. Why would any investor buy a bond with a negative yield from a country that can only pay them back by printing more money? We are at the end of a very long interest rate cycle that has driven a massive wealth effect in finan
Negative interest rates are a sign that the current economic system is straining. The price of money is broken. Why would any investor buy a bond with a negative yield from a country that can only pay them back by printing more money? We are at the end of a very long interest rate cycle that has driven a massive wealth effect in financial assets. Long only gains will be more difficult in future years.
"When money is mispriced all assets are mispriced."
- Chris Galizio, Focused Capital
We expect a paradigm shift from a strong dollar with no inflation to a weak dollar with inflation that will re-order markets, return asset prices to their intrinsic values and allow the "real economy" to start growing again.
“Do you know anyone who’s actually bought a negative interest rate bond…? I would never buy a negative rate bond.
We expect a paradigm shift from a strong dollar with no inflation to a weak dollar with inflation that will re-order markets, return asset prices to their intrinsic values and allow the "real economy" to start growing again.
“Do you know anyone who’s actually bought a negative interest rate bond…? I would never buy a negative rate bond. Not unless I was forced….
In history, whenever you see something like that, it doesn’t necessarily end well.”
Jamie Dimon, CEO of JP Morgan Chase
Our Philosophy
Investing
Security Selection
Security Selection
Investing is simply the act of buying an asset for less than the value of its future cash flows discounted back to the present at a reasonable rate. In the long run, asset prices revert back to their intrinsic values.
Security Selection
Security Selection
Security Selection
We are bottom-up investors that evaluate each security on its own metrics. Negative interest rates are a strong sign that world has become top-down. We expect a structural shift that will have decades of persistence and return asset prices to their intrinsic values.
Cash Flow
Security Selection
Cash Flow
Cash flow is more important than earnings. Companies pay dividends, buy new equipment and pay their employees with cash, not earnings. Stock-based compensation is a real expense to the shareholder and needs to be included as an expense. Non-GAAP EPS is fiction.