Mark to Market – The Forest and the Trees

October 2019 Mark to Market – The Forest and the Trees With a 24/7 news cycle populating our smartphones and breaking news throughout the day, investors may feel they need to check their portfolios continuously. While investments in Real Estate, VC or Private Equity don’t provide daily updates to valuations, and investments in private markets […]

Earned Growth vs. Rented Growth

September 2019 Earned Growth vs. Rented Growth Not all growth is created equal. At Somar we distinguish between Earned Growth (EG) and Rented Growth (RG). EG occurs both when a company grows with their existing clients and / or when they take market share by offering new clients a better value proposition than its competitors[1]. […]

IPOs: Separating the Wheat from the Chaff

August 2019 The Short Book – Part 2: IPOs – Separating the Wheat from the Chaff Initial Public Offerings (IPOs) are unique landmarks in a company’s life. They gather a lot of media attention, open up liquidity for early investors and for employees, provide a currency (stock) the company can use in future acquisitions and […]

The Short Book

July 2019 The Short Book After pausing for a couple of months to celebrate our anniversary and provide an update on the inherent value creation of our portfolio, we complete our discussion of Somar’s mission this month by talking about our short book, our third pillar (Fig. 1). The short book adds alpha to our […]

Inherent Value Update

Inherent Value Update In our January 2019 letter, we introduced an analysis of our long portfolio inherent value creation. This month we update this analysis (Chart 1). Please see the appendix where we reprint our description of the methodology behind this analysis. Chart 1 Source: Somar Analysis Note: Index December 2016 = 100 Our performance […]

Somar Turns 3!

May 2019 We are excited to celebrate our 3rd anniversary this month. It has been a good journey. We keep learning and improving every month. I have strong conviction that our best days are ahead. The team prepared a short video with their thoughts on our anniversary. Please check it out: On a personal front, […]

Focus on the End Game

April 2019 Focus on the End Game In celebration of our upcoming 3rd anniversary, this month we look at the second pillar of Somar’s mission (Fig. 1). *** In our experience we have found that a long-term focus is an advantage. Some public investors use high amounts of leverage and have a short-term investment thesis […]

Somar’s Mission

March 2019 Somar’s Mission In celebration of our upcoming 3rd anniversary, we would like to elaborate on our mission at Somar, which we have illustrated below (Fig. 1). We will use this, and the following two letters to delve deeper into our core pillars. We believe that Somar offers a very compelling way for investors […]

Growth is Value – February 2019

Growth is Value Somar firmly disagrees with the conventional distinction between “growth” and “value” styles of investing. They are not mutually exclusive. In fact, growth is an ingredient for value creation. We believe this misperception opens opportunities for long term investors who have the skill, discipline and staying power to invest in mispriced growth opportunities. […]

Inherent Value – January 2019

Inherent Value We decided to focus this month on going deeper on the performance of our long investment portfolio, which generated a large drawdown at the end of 2018. While every month we report to you the precise mark-to-market value of your portfolio, that return doesn’t necessarily reflect the inherent value being created by our […]