At 1623 Capital, we take history to heart, learn from it, and use it to our advantage. By studying the investing attributes that have withstood the test of time, we strive to build a lasting investment legacy for everyone involved.
We know from history that owning the strongest businesses typically leads to the strongest investment results.
We seek to own dynamic companies that benefit from several advantages over competitors; serve customers who love or depend on what the company offers; and are run by aligned leaders who thrive at driving the business to new heights.
We believe from experience that the best way to compound capital is to focus on these types of rare companies—especially those that also have stellar financial strength and expansive market opportunities.
We believe we can deliver outperformance for our investors by adding to our favorite positions as opportunities arise, aspiring to have low core-stock turnover, and maintaining an ownership-minded discipline.
Further, we seek to mitigate risk by owning businesses at attractive valuations in relation to their potential, and by using hedges to cushion market drops, and stock options for extra income, for protection, and for upside with less capital at risk.
Finally, we seek to sell short lagging companies to profit when the market falls, and as these companies suffer. Our shorts and hedges have the potential to provide capital during downturns that we can then reinvest for more upside.
Combining all of our logical yet advanced strategies into one comprehensive approach, we follow a long-term investment roadmap in pursuit of compounding value, while buffering market risk, earning extra income, and seeking returns in less-than-friendly markets as well.
We’ll share more details about our investment process in our monthly investor letters and in Commentary pieces. We invite you to follow along by registering your interest.
—The 1623 Capital Team