Investment Lifecycle and Strategies
Value
WHERE WE DIFFER
WE BELIEVE INVESTORS ARE LARGELY BROKEN DOWN INTO THREE
CATEGORIES. EACH METHOD IS PROFITABLE, BUT THE SKILLS AND
INHERENT QUESTIONS ARE DIFFERENT IN EACH.
Distressed/Deep-value /
Sum of Parts Investors
Event-Driven Funds / Market Neutral
/ "Traders"
Hayden Capital / "Compounders" /
Long-Term Investors
Intrinsic Value
Stock Price + Value of Distributions
Time
"How do we unlock value / liquidate / milk
this company's cash flows as quickly as
possible?"
Value
BUY
SHORT
V
BUY
Stock Price
Time
_SHORT
"What's the intrinsic value? Who cares? I'm
out in 6 months anyways...
What will cause other traders to change their
perception sentiment / multiple?"
Value
Growth accelerates
because:
Future ROIC >
Historical ROIC
We aim to
purchase stock at
a "cheap to fair"
valuation...
Intrinsic Value
Time
----
Stock Price
-
...But over a long
time horizon, the
slope of the
Intrinsic Value
curve is a much
larger driver of
returns.
Better to focus
your time here.
"How quickly is the intrinsic value growing?
Where is the company investing?
Do the future projects have higher returns vs.
historically, and thus cause the a change /
inflection in the slope of the intrinsic value
curve?"
HAYDEN CAPITAL 10.View entire presentation