Why the Saguaro?

Resilience

The Saguaro (suh-waa-row) is a keystone species for the Sonoran Desert of southern Arizona and northern Mexico, meaning that most other native flora and fauna depend upon it for their life cycle. Perfectly designed to dominate its ecological niche, the Saguaro can endure months of scorching heat with no rain or thrive in the monsoon season when rivers flood the sands. With spines to protect it from threats the Saguaro consistently does one thing every year, it grows. We aspire that both our firm, and the companies we invest in, will be as resilient.
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Creating harmony from the noise:

value investing and data science

We are classic value investors with extensive experience performing in-depth, fundamental business analysis. This isn’t enough.
We also recognize that what has produced top-tier results for the last twenty years is insufficient for the decades ahead. Humans are driven, creative, and imaginative, but machines are tireless; they process an order of magnitude more data, and their relentless logic is devoid of emotion. If future performance is your goal, we believe a fusion of man and machine will get you there. Accordingly, we leverage various data science capabilities to enhance our human fundamental research.
The development of AI is as fundamental as the creation of the microprocessor, the personal computer, the Internet, and the mobile phone. Entire industries will reorient around it. Businesses will distinguish themselves by how well they use it.
– Bill Gates

Our investment philosophy is simple

1

Find and follow the best businesses on earth

We use artificial intelligence to continually scour the world for companies that fit our definition of quality

2

Buy them only at a meaningful discount to intrinsic value

We utilize our options overlay to monetize and fortify our buy and sell discipline

3

Allow them to compound for as long as possible

We are patient, long-term investors and aim to own these businesses for many years

1

Find and follow the best businesses on earth

We use artificial intelligence to continually scour the world for companies that fit our definition of quality

2

Buy them only at a meaningful discount to intrinsic value

We utilize our options overlay to monetize and fortify our buy and sell discipline

3

Allow them to compound for as long as possible

We are patient, long-term investors and aim to own these businesses for many years

Our investment process is differentiated

01

Global

Our search is unconstrained as we scour the globe for the world’s best businesses
02

Concentrated portfolios

5-20 long positions; high conviction; very high active share portfolios
03

Capacity constrained

We want to perform, not gather assets. Our capacity limits are strict, and we will not accept new subscriptions once they are reached. If size ever negatively impacts performance, we will return capital.
04

Valuation ranges

Systematic buy/sell discipline built to act at the outer bands of our valuation confidence intervals
05

Options overlay

We short (write) put and call options to fortify and monetize our buy-sell discipline
06

AI-powered

Cutting edge artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) algorithms power our process

Our investment process is differentiated

Our search is unconstrained as we scour the globe for the world’s best businesses
5-20 long positions; high conviction; very high active share portfolios
We want to perform, not gather assets. Our capacity limits are strict, and we will not accept new subscriptions once they are reached. If size ever negatively impacts performance, we will return capital.
Systematic buy/sell discipline built to act at the outer bands of our valuation confidence intervals
We short (write) put and call options to fortify and monetize our buy-sell discipline
Cutting edge artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) algorithms power our process

Our investment strategies

01
Saguaro Large Cap
  • Companies > $20 billion
  • Global approach
  • Capacity: $5 billion
  • 5-20 long equity positions
02
Saguaro Smid Cap
  • Small and Mid-Cap Focus < $20 billion
  • Global approach
  • Capacity: $1.5 billion
  • 5-20 long equity positions
03
Saguaro All Cap
  • Unconstrained approach
  • Global approach
  • Capacity: $3.5 billion
  • 5-20 long equity positions
There can be no guarantee that the Fund will be able to implement its investment strategy or achieve its investment objectives.
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