How Big? (Part 1)
As managers of Montaka, finding great individual investment ideas is only part of the battle. Once we have identified a stock with attractive future returns for the risks being assumed we must then determine an appropriate position size. We believe there are three key variables which should guide this decision. Today’s blog is the first […]
What makes a great short? (Part I)
In this four-part series, we will examine in detail the four specific characteristics that we think make an attractive short. The first of the four specific characteristics that we think make an attractive short candidate we call: Thematics or Structural Declines. Here, we are referring to multi-year, structural changes that we see happening – typically […]
Being wrong for the right reasons
Over the Christmas holiday period, many of you would have noticed a bombardment of advertisements for Fitbit (NYSE: FIT). Fitbit produces wearable devices that measure various health parameters such as steps walked, hours slept and even your heart rate. The idea is that such health information, once measured, can be used to better manage health […]
Focus on process, not outcomes
I was recently reading Nate Silver’s excellent book called: The Signal and the Noise. The book deals with a number of really important issues that investors have to deal with including probabilistic thinking; and disaggregating skill and luck (which Silver refers to as the signal and the noise). This latter issue is really important to […]
Harvard looking for short-sellers
A couple of weeks ago, the Financial Times published an article highlighting the cautiousness Harvard’s $38 billion endowment fund was now exercising with respect to its outlook for global financial markets. It’s perhaps little wonder. Take a look at the table below circulated by economic observer, Cullen Roche, last month. Every single major asset class […]
The Intrinsic Value Conundrum
We seek to buy high quality businesses at a discount to our assessment of intrinsic value. That surely sounds sensible. But what is intrinsic value? And is there a trade-off between business quality and the discount to intrinsic value you need to make money? Furthermore, is there ever an argument to buy a business at […]
Getting to know the Montaka portfolio – Part I
As part of our efforts to promote transparency in Montaka, we publish the following charts each month to give our investors insight into the geographical regions to which their capital is exposed. The charts below illustrate the percentage of client capital that is exposed to each region in terms of where the underlying businesses are […]
Montaka’s Unique Approach
Christopher Demasi discusses Montaka’s structural advantage to protect capital and generate superior returns.
