Somar Turns 1 One year ago, we partnered to start the Somar journey. 12 months later we are off to a good start and look forward to the future with strong confidence. My conviction that Somar will deliver superior risk-adjusted returns to our investors has never been higher: our performance is ramping up nicely; we […]
A Personal Story My dad is a medical doctor. He started his career in a hospital, working all night at the emergency room. His passion was serving as a community doctor. Therefore, when I was 10, he moved our family to the Portuguese countryside and built his practice there. Every day he put in long […]
Portfolio Construction Process We believe Somar’s portfolio management process is accretive to our returns. Our process allows us to Quantify and monitor our expected portfolio performance for the next 12 months Easily weigh trade-offs between opportunities and risks among different industries and geographies Use market volatility to our investors’ advantage by sizing up positions on […]
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.
Idea Generation: International Diffusion of Secular Change One consistent source of idea generation for Somar is the diffusion of secular change across borders. We study the winners and losers in the area where the change originated and leverage those learnings to other geographies giving us an early read into opportunities for longs and shorts there.
We are not happy to report these results, as the performance falls short of what we expect from Somar and the businesses we invest in. We have analyzed the causes of this gap and concluded the following: Operationally the businesses are performing well, meeting or exceeding our expectations There has been no single or small […]
The performance this month fell short of what we expect from Somar in a month with similar performance from the indexes. Yet this was no normal month. In the wake of the election of Donald Trump as the next US president the markets reassessed their perspective and made violent rotations among sectors. The sectors in […]
Volatility remained high in October as uncertainty about the upcoming US election weighed on investors’ conviction to build long term positions. Our long term focus led us to build positions in extremely attractive businesses when their valuation opened very attractive risk-reward profiles.
Volatility picked up in September and we used the market swings to continue adding to our portfolio. We are extremely sensitive to valuation and maintain high standards for adding new and existing positions. A volatile flat market like the one we experienced in September plays to Somar’s strengths. Virtually all of our performance in September […]
Secular Change As we move forward we would like to provide you with more details about our portfolio. We prefer to discuss individual positions close to the time of harvest. We do this to avoid a common pitfall that humans tend to fall into while analyzing complex situations: commitment and consistency. To say it another […]