"It isnt the mountains ahead to climb that wear you out; it's the pebble in your shoe." - Muhammad Ali

Fortunato 1
Growth and Value Strategy

Capital Appreciation, All Cap, Anywhere, Long Term Horizon

Objectives: Long Term Capital Appreciation
Strategy: Growth, Value or a combination of both. Long Only Equities, Non-Leveraged

Fortunato 1 focuses on long term capital appreciation through growth and value equity opportunities from all sectors, sizes and geographic regions. We look for equities with superior growth and value characteristics often in out-of-favor industries or geographic regions. The strategy is actively managed and may hold highly concentrated positions in equities to establish superior returns over time. Any percentage of the strategy may be held in short term liquid assets (cash) at any given time.

Characteristics of Fortunato 1:

  • Own between 8 and 30 stocks (or funds or ETFs in the case of some foreign markets) at any given time, concentrating allocation on the best ideas, and enabling better coverage of those ideas
  • Long term ownership horizon goal. At the time of purchase we are normally committed to holding an equity for 2 to 5 years. However, the equity may be sold early if 1) the fundamental story deteriorates, 2) the equity approaches or exceeds our best estimate of fair value.
  • Flexibility in the percentage of each stock owned. The Fortunato 1 strategy may hold a concentrated amount in one or more stocks in order to attempt to optimize returns
  • Fortunato 1 strategy holds a percentage of cash based on our proprietary market valuation formula. By keeping these percentages of cash available, we are able to take advantage of market downturns and forced selling during corrections.
  • Fortunato 1 is comprised of either value oriented equities, growth oriented equities or a combination of both
  • Stocks (or funds) of any size, sector, situation, or country may be purchased and held in the fund, allowing the maximum flexibility to find the best opportunities

Selection Focuses:

  1. Free Cash Flow
  2. Return on Invested Capital or Return on Equity
  3. Sustainable Growth
  4. Durable Competitive Advantages
  5. Management Strength
  6. Balance Sheet Strength
  7. Valuation Criteria

We focus on finding exceptional businesses with quality management whose stocks are selling at attractive valuations. "Quality” business may take on many forms and definitions. Our research focuses on finding businesses that are priced at a discount based on our propriety valuation criteria and therefore have favorable near and long term prospects for appreciation.

Inception Date: 08/01/13