Our Approach
Alkaline Capital Partners is a value investment partnership based in Dubai in the United Arab Emirates. The partnership manages separately managed accounts on behalf of its investors.
Our investment approach is founded on a set of simple principles:
Capital preservation
Our analysis of an investment opportunity begins with a company's balance sheet. If we cannot understand or get comfortable with a company's balance sheet, we pass. Our first priority is preservation of our investors' capital.
Value
Our preference is for opportunities where the investment value is clear but the immediate outlook is clouded. For that reason, we are most attracted to opportunities where we can assess the value of an investment opportunity without overly refined assumptions as to future financial performance: we don't want to have to weigh a guy in order to know whether he's fat. Similarly, we don't want our assessment of present value to depend on assumptions projected too far out into the future. Our margin of safety should lie in an obviousness of value over price.
Concentration
At any one time we find very few investment opportunities that attract us. When we do, we concentrate our capital on them. This can make our quarterly and even yearly returns volatile. Our investors need to feel comfortable putting out a vat when it rains gold rather than a thimble and to accept that the skies won't look upon us favourably each and every season.
Volatility
We do not shy away from volatility and we will typically be most active when the market is going through one of its periodic panics. Often that will mean that we are taking positions in securities whose prices have declined or are declining. In the near term, this may cause our performance to lag key market indices. But we are confident that this approach will produce outsized annual returns over the medium to long term.
Compound Growth
We aim to produce long term compound growth and to outperform the main market indices by 4% on an annualized basis.
Shorting
Occasionally we short companies that we consider to be overvalued or structurally weak or whose business models we consider to be unsound. From time to time, we may also short sectors of the market or the entire market itself to protect our portfolios. Our short positions will typically make up only a small proportion of the total value of our portfolios.
Preferred Markets
Our preferred market is the equity markets of the United States. However, where we are unable to find investment opportunities in the U.S. or where other developed markets offer more compelling valuations, we will invest in those markets also. On those occasions, we may or may not hedge our currency risk. Whether we do will depend on the size of our positions and on a realistic assessment of the risk of significant adverse movements in the currencies in which our positions are denominated.
Alkaline Capital Partners is a value investment partnership based in Dubai in the United Arab Emirates. The partnership manages separately managed accounts on behalf of its investors.
Our investment approach is founded on a set of simple principles:
Capital preservation
Our analysis of an investment opportunity begins with a company's balance sheet. If we cannot understand or get comfortable with a company's balance sheet, we pass. Our first priority is preservation of our investors' capital.
Value
Our preference is for opportunities where the investment value is clear but the immediate outlook is clouded. For that reason, we are most attracted to opportunities where we can assess the value of an investment opportunity without overly refined assumptions as to future financial performance: we don't want to have to weigh a guy in order to know whether he's fat. Similarly, we don't want our assessment of present value to depend on assumptions projected too far out into the future. Our margin of safety should lie in an obviousness of value over price.
Concentration
At any one time we find very few investment opportunities that attract us. When we do, we concentrate our capital on them. This can make our quarterly and even yearly returns volatile. Our investors need to feel comfortable putting out a vat when it rains gold rather than a thimble and to accept that the skies won't look upon us favourably each and every season.
Volatility
We do not shy away from volatility and we will typically be most active when the market is going through one of its periodic panics. Often that will mean that we are taking positions in securities whose prices have declined or are declining. In the near term, this may cause our performance to lag key market indices. But we are confident that this approach will produce outsized annual returns over the medium to long term.
Compound Growth
We aim to produce long term compound growth and to outperform the main market indices by 4% on an annualized basis.
Shorting
Occasionally we short companies that we consider to be overvalued or structurally weak or whose business models we consider to be unsound. From time to time, we may also short sectors of the market or the entire market itself to protect our portfolios. Our short positions will typically make up only a small proportion of the total value of our portfolios.
Preferred Markets
Our preferred market is the equity markets of the United States. However, where we are unable to find investment opportunities in the U.S. or where other developed markets offer more compelling valuations, we will invest in those markets also. On those occasions, we may or may not hedge our currency risk. Whether we do will depend on the size of our positions and on a realistic assessment of the risk of significant adverse movements in the currencies in which our positions are denominated.