Investment Philosophy
Risk = Price
Investing risk is often defined as the potential for loss and is frequently equated with volatility. However, as Howard Marks suggests, while risk cannot be precisely measured, we consider price to be the most reliable indicator of risk.
Through this lens, a distressed asset purchased at a discount may carry less risk than a so-called “quality” asset acquired at a premium.
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As value investors, we live by the adage: “You make money when you buy.” In our business, entry price is everything. This philosophy is especially critical in our real estate strategies, where we acquire existing, cash-flowing, hard assets. Our Acquisitions and Investment teams conduct rigorous due diligence, financial modeling, and market research to ensure we accurately determine the present value of every asset we purchase.
While our venture strategies don’t lend themselves to the same level of quantitative analysis, the principle of risk = price remains foundational to our investment approach. We maintain discipline in valuation, investing only in companies where pricing reflects the true balance of risk and opportunity.
Diversify & Concentrate
Modern Portfolio Theorists often call diversification the only “free lunch” in investing. While diversification helps mitigate risk, a well-executed concentration strategy can also play a crucial role in maximizing risk-adjusted returns.
Diversify - Where we invest
Through our investment funds, we offer diversified portfolios across the United States, reducing exposure to region-specific risks and ensuring stability across varying economic conditions.
Concentrate - How we invest
Our investment approach isn’t theoretical—it’s proven. We have consistently doubled down on active investment strategies that demonstrate resilience and performance across all market cycles.
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Diversify - When we invest
Time in the market > timing the market. We don’t sit on the sidelines hoarding cash, nor do we make short-sighted moves that force us to sell in unfavorable conditions. By focusing on inefficient markets, we find strong investment opportunities in any environment.
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Concentrate - What we invest in
We stick to our core competencies and only invest in assets that can produce meaningful alpha for our investor partners. These asset types, which include value-add multifamily and gas stations for real estate and early-stage technology companies for venture, each include a specific edge that allows us to outperform the market.
Long-Term Orientation
A long-term perspective is one of the most effective ways to avoid common investment pitfalls. But how can this approach be applied to strategies with only a multi-year hold period? The answer: leveraging available tax incentives.
By combining high-growth alternative investments with tax-efficient strategies, we help our investor partners grow their wealth without disruption from taxable events, allowing compounding to continue uninterrupted.
We prioritize after-tax returns because what you keep can sometimes matters more than what you earn. With a 37% top marginal tax rate, it would be shortsighted to assess investment performance without considering tax efficiency. We recognize that a dollar today is worth more than a dollar tomorrow, which is why we structure our strategies to defer taxes as much as possible, for as long as possible—maximizing both growth and wealth preservation.
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