Fact-based vs. opinion-based investing “When my information changes, I alter my conclusions. What do you do, sir?” – John Maynard Keynes One of the hardest and most profitable skills to develop as an investor is the ability to be open to new information and to change one’s mind when new information alters one’s previous conclusions. […]
Mistakes… I’ve had a few At Somar we strive daily for continuous improvement to make sure the portfolio at market close is more compelling and has more upside than the portfolio at the start of the day. We use several tools for this: talking with management, direct observation, data science, reading, observing other people’s mistakes […]
Golden Age of Investing Over the first half of 2017 we added several new secular winners to our portfolio. The pace at which we have been doing that has been accelerating which speaks to the quality of the opportunity set ahead of us. Our estimation of the portfolio’s risk-reward now stands at an all-time high […]
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 […]