I manage separated accounts with a limited power of attorney. Managed accounts typically offer the highest degree of transparency to the client and are fairly easy to set up. I would like to attract private and institutional clients who are willing to invest for the medium to long term, and who would like to have open and first-hand access to a dedicated portfolio manager.”
Unique Value Proposition
- Nearly all of my own wealth is in the core portfolio. If my investors lose money, so do I.
- The core portfolio is focused on my best investment ideas.
- I am free from the institutional pressures that bog down many fund managers working in large organizations. The truly great investment opportunity calls for swimming against the tide. I am not afraid to be contrarian. A fund manager trying to manage his career risk may take a different view.
- I have a very loyal investor base with a patient and long-term view. The majority of fund managers do not have this luxury. They are measured on quarterly or even monthly results.
- iolite’s smaller size allows me to fish in small ponds where the big fishermen can’t go. Shops that are larger than iolite are restricted by several factors and often miss out on exploiting attractive opportunities, such as smaller micro caps, where there are a lot of inefficiencies.
Is This For You (Reasons Not To Invest With Me)?
In the interests of saving your time and mine, I would like to point out some aspects of my investment process, which may lead some investors to rule out an investment.
- I am a one-man show. I have organized myself this way as it avoids conflict and frees me to focus all my energy on capital allocation rather than managing staff. There is no risk committee and there is no formal process for my investment decisions. If you require a more institutional setup, iolite is not for you.
- My portfolio is highly concentrated. I am a believer 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.
- Given the high concentration, my portfolio is subject to high volatility. If you cannot stomach large swings in your net worth, iolite is not for you.
- The managed accounts have quarterly liquidity. I often hear that investors would prefer monthly or even daily liquidity. If three months is too long a time horizon for you, we are probably not a good fit.