Taking Stock

August 2020 Somar has had a very active summer. We generated several new short and long ideas. The wide changes in valuation led to more portfolio management adjustments than normal. We also had good conversations with investors, some of whom have trusted us with additional capital. To give some color of the past few months […]

Skyscrapers vs. Working From Home

July 2020   Skyscrapers vs. working from home Somar has built short positions in owners of large skyscrapers in New York City and San Francisco. We developed our thesis based on direct observation of the market conditions. While we like to avoid discussing our short positions, this investment provides a good illustration of the importance […]

Portfolio Management

June 2020 Portfolio Management The world has changed dramatically over the past few months. From a sharp macro contraction to a sharp recovery; emergence of divergent paths on public health around the world and ongoing geopolitical changes. Detecting and incorporating these divergent paths into our views has been key for Somar’s performance. We believe the […]

Boohoo

May 2020 Boohoo In celebration of our fourth anniversary, this month we present our investment in Boohoo, a position we have held almost since inception. Founded in 2006, Boohoo is an online fashion retailer focused on young customers. It has designed an innovative model that we believe is best-in-class, leveraging the three major innovations in […]

Macro Recovery? It’s Not That Simple

April 2020 Macro Recovery? It’s Not That Simple We’ve seen two years’ worth of digital transformation in two months. – Satya Nadella, Microsoft CEO For the past five weeks I have not touched a single coin or banknote, instead relying exclusively on electronic payments systems and credit cards that only I touch. – Gary Cohn, […]

Investing in the Wake of a Shock

March 2020 Investing in the Wake of a Shock It is not the strongest of the species that survives. Nor the most intelligent. It is the one that is the most adaptableto change. – Charles Darwin In nature nothing is created, nothing is lost, everything changes. – Antoine Lavoisier Long periods of low risk and […]

Covid-19 and Unusual Economic Scenarios

February 2020 Covid-19 and Unusual Economic Scenarios In respect to the risk criterion, we were looking for someone with a hard-to-evaluate skill: the ability to anticipate the effects of economic scenarios not previously observed. Warren Buffett – 2010 Letter to Shareholders of Berkshire Hathaway The ongoing world outbreak of Covid-19 is stretching health care systems, […]

Inherent Value Update

January 2020 Inherent Value Update This month we update the analysis of Somar’s Founder’s Class vs the inherent value created by our long portfolio (Fig. 1). The methodology was described in our letter from January 2019[1]. This update shows a continuous and even accelerating growth in the sales per share of our companies. This, however, […]

The Year Ahead

December 2019 The Year Ahead At the beginning of a new year, market strategists and media outlets compile their views for the year ahead. Prominent attention is given to the macro outlook. This year the consensus is predicting a supportive macro environment for the year ahead: Phase 1 trade deal with China limits the probability […]

2019 Year in Review

November 2019 2019 Year in Review I’m extremely pleased with what the Somar team achieved in 2019. This year put us in a strong position totake advantage of the opportunities that 2020 will bring: The businesses we own executed very well, growing profitability and sales ahead of their share pricegains on average (Fig. 1), despite […]