ABOUT · OUR PHILOSOPHY
How we think about investing.
Our starting point is simple: most money in most markets is managed by people who cannot afford to be wrong for more than a few quarters.
That constraint — institutional, reputational, career-driven — creates a persistent gap between price and value in certain corners of the global market. We exist to exploit that gap, patiently and deliberately.
We are not trying to beat the market by a few percentage points each year. We are trying to own extraordinary businesses for long enough that the compounding does the work. The difference sounds semantic. In practice, it changes everything about how we research, what we buy, and how long we hold it.
What we look for
The businesses we want share a small number of characteristics that we have come to believe are genuinely durable sources of competitive advantage. High returns on invested capital sustained over time — not just one or two years of good margins, but structural economics that competitors cannot easily replicate. Strong free cash flow generation, ideally converted from growing revenues rather than shrinking costs. And management teams that allocate capital intelligently, which in practice means not destroying value through acquisitions, not over-distributing at the expense of reinvestment, and not running the business for short-term optics.
We use EV/FCF yield and ROIC as our primary valuation lenses. We are skeptical of businesses where the valuation story depends on multiples that have never existed in practice, or on cash flows that have never actually materialized.
The best investment ideas are almost never the ones that feel comfortable at the time of entry. If a business is widely recognized as exceptional, you will usually pay a price that makes the next decade of returns mediocre. Our search is for the exception: businesses whose quality is real but whose recognition is incomplete.
- Fernando Araujo, CFA, Founder
Our information edge
We see markets through the lens of investors who have witnessed currencies collapse, governments default, and inflation erode savings in ways that most Western portfolio managers have only read about in textbooks. That experience gives us a calibration that is genuinely different: we are not surprised by volatility, we are not anchored to nominal returns divorced from purchasing power, and we are genuinely curious about the parts of the global economy that exist outside the G7 index.
At the same time, we invest globally. Our portfolio includes European luxury compounders, American semiconductor leaders, Indian private banks, Chinese platforms, and Brazilian healthcare operators. The breadth is not for diversification's sake — it is because the best ideas can emerge from anywhere, and an investor unwilling to travel for them leaves alpha on the table.
What we do not do
We do not trade. We do not hedge with derivatives. We do not try to time macro turns. We do not hug benchmarks, and we are equally honest that it is precisely in the periods when our portfolio diverges most from the index that the discipline to hold — or add — creates the asymmetry that makes long-term compounding possible.