Small is Beautiful
Since the beginning of 2017 a combination of our performance and the addition of new investors has seen Somar cross the $20mn AUM mark. Currently, we are approaching the mid 20s. We are encouraged by our momentum and the confidence that you, our partners, have placed with us.
Some prospective investors have expressed concerns about our current size. They stem mostly from its impact on the size of our workforce as well as on our ability to amortize certain fixed costs. While these arguments are valid, we believe they are more than compensated by the benefits we accrue from our current size.
Our mission is to provide our investors superior risk-adjusted returns. At our current size, we have all the tools we need to deliver on our mission.
- Somar Capital, as an organization, has a balanced financial operation. We are currently above breakeven and have sound financial reserves should we need it.
- Our size allows us to be nimble and to quickly take advantage of opportunities the market presents.
- Our organization is highly coordinated and aligned. This allows us to spend substantially all of our time in the pursuit of the vast opportunity we see ahead rather than managing the complexity brought along by several silos and management layers.
- We are able to expand our resources and needs on an opportunistic basis when the need occurs by hiring external providers: e.g. forensic accounting.
- We have negligible impact on the markets when we need to quickly scale in or out of a position.
- We are able to have a close and transparent relationship with all of our investors.
- We can access trading venues that are less meaningful for larger funds. For example we can build or unwind meaningful positions in after-hours or pre-market trading, when liquidity is scarce.
- We are able to work with Tier 1 providers like Goldman Sachs, KPMG, SS&C and Seward & Kissel.
We are extremely happy with our organization and look forward to continuing to deliver on our mission.