iolite was founded in 2008 by Robert Leitz, who wanted to create an investment business that, at its core, focused on stock picking to deliver significant long-term capital gains. iolite’s clients are a select circle of individuals investing for the medium to long term, who prefer to have first-hand access to a dedicated portfolio manager rather than deal with a large, anonymous institution.
Unique Value Proposition
iolite’s founder, Robert Leitz, is strongly aligned with the company – he manages the bulk of his wealth through iolite, alongside that of his clients. Robert carefully selects investors for iolite to ensure they share his long-term philosophy and hold fast even as markets get frothy. This gives iolite a stable and patient capital base, and allows him to pursue an unconstrained investment approach – he is free to invest wherever he finds attractive opportunities.
A Word of Warning
Aspects of iolite’s investment process may lead some investors to rule out an investment
- One man show: the investment manager believes this structure avoids conflict and frees him to focus all his energy on capital allocation rather than managing staff. There is no risk committee and there is no formal process for investment decisions. If you require a more institutional setup, iolite is not for you.
- High concentration: the portfolio is highly concentrated. At iolite, we are believers in Mark Twain’s dictum: “Put all your eggs in one basket, and watch that basket!” Most business schools teach that diversification is the highest goal. If that is your view, iolite is not for you.
- Volatility: given the high concentration, the portfolio is subject to high volatility. If you cannot stomach large swings in your net worth, iolite is not for you.
- Quarterly liquidity: some investors would prefer monthly or even daily liquidity. If three months is too long a time horizon for you, we are not a good fit.
- Social prestige: iolite doesn’t have fancy offices, clients don’t get free tickets to exclusive events, and we often invest in truly obscure and unloved businesses. If you are looking for excitement and social prestige, please look elsewhere.