HOW WE ARE DIFFERENT

SIZE MATTERS...
  • Dark Horse launched in 2018 as a vehicle to capitalize on the inefficiencies created by the growth of mega-billion dollar investment managers.

  • The mega-managers are forced to focus on the largest investment opportunities, creating pricing inefficiencies in smaller opportunities due to the reduced level of competition. 

  • Dark Horse proactively seeks to compound value throughout the entire business cycle by focusing on under the radar opportunities in inefficient markets.

WELL-DEFINED RESEARCH PROCESS
  • Proactively identify structural change to highlight investment themes and opportunities.

  • Focus on capitalizing on misunderstood companies subject to such change.

  • Intrinsic value discovery based on levered free cash flow forms the foundation of any investment.

  • The goal is to discover cash on sale.

FLEXIBILITY, SIZE, AND SPEED
  • Target the most asymmetric investment opportunity regardless of the security.

  • Focus on small and mid-cap opportunities that are not followed by larger funds.

  • No bureaucracy - fully researched investment opportunities can be executed quickly.

REPEATABLE SUCCESS
  • Post-mortem evaluation to determine whether success was caused by skill or luck.

  • Why did we win?  Why did we lose?  Were we right to pass?

  • Understanding the actual drivers of a win or a loss enable the ability to create and continuously optimize a successful investment process.

WIN WITH INTEGRITY AND CLASS
  • Approach every day as a competition.

  • A Dark Horse win is a loss for the counterparty; show class and humility - paths will cross again. 

Copyright © 2019 Dark Horse Capital Management LLC