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 […]

Expectations for 2019 – December 2018

Expectations for 2019 The strong market correction of the last months of 2018 was punishing to our reported return in the year. But it didn’t distract us from our mission: to find and buy consumer businesses offering significant upgrades to consumer value propositions at attractive prices and short their competitors with inferior consumer offers that […]

Looking Back and Forward – November 2018

Looking Back and Looking Forward This month the team has decided to share our thoughts on the year through a video. You can find it following this link:

A Tale of Two Cities – October 2018

A Tale of Two Cities Contrary to what might be a readers’ first reaction, the last month has given us increasing confidence in our portfolio. Most of our long investments have reported and have beat market expectations with few exceptions. A significant portion of our short investments have missed their earnings with some reducing the […]