Philosophy

Philosophy

Background:

  • Family Office
    We started with family money and a focus on long-term wealth accumulation without the pressures typical to money managers in big banks: short-term performance, commission gathering, year-end bonus evaluations, and job security.
  • Focus on downside
    We have no incentives to take on unnecessary risks to increase short-term performance. Frank Capital Partners LLC believes that in investing, if you minimize the risk of a permanent impairment, spectacular returns will result.
  • Four generations of family money
    Our money is invested along-side of yours whether it is our oldest family generation growing capital for charity, or the youngest generation saving for college.

Employee-owned Independence:

  • Employee-owned
    This eliminates conflicts of interest and allows us to focus on long-term capital appreciation.
  • Independence
    We are a stand-alone fund company without the red-tape or politics of a big bank or large asset manager. This allows us to execute our strategy regardless of the market environment.

Strategy:

  • By-the numbers Discipline
    We screen for operating businesses with high marginal returns on capital trading at low valuations based on EBIT and FCF relative to their enterprise values.
  • Patience
    Our research assumes a long-term holding period. Fundamental investing based on low valuations and high returns on capital sometimes goes out of favor and we build in the protection of “running the store” instead of being forced to sell in a weak stock market.
  • All-Cap Concentration
    The strict research criteria we adhere to demand an extremely wide net. Due to our family-office roots we refuse to fit in a “style box.” Instead, we concentrate in the best 25-33 ideas regardless of market capitalization because we believe in order to beat an index you must refrain from looking like one.

 

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