Strategy

 The Stonerise Capital investment approach is characterized by:

  • Primary focus on North American small-to-mid cap equities;
  • Long-term investment time horizon, underwriting a 2-4 year holding period;
  • Concentrated portfolio, with typically 8-12 core long positions (>5% portfolio);
  • Focus on high quality businesses, while maintaining a rigorous valuation discipline;
  • High conviction strategy that deploys the time and resources to conduct deep fundamental business analysis, with a strong cash flow orientation;
  • Engagement in constructive activism, where appropriate, seeking to work collaboratively with management and serving as a change-agent for improving underlying businesses;
  • Long biased (generally 40%-80% net long);
  • Limited fund-level leverage (average gross exposure <100% since inception);
  • Tax-efficient capital gains (~70% of historical gains have been long-term in nature);
  • Three founders have been partners together for 17 years executing the same strategy; and
  • Strong three-member investment team with deep experience in both public and private investments.