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: https://www.youtube.com/watch?v=_r8tnb_u2jU

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 […]

Alignment of Interests – September 2018

Alignment of Interests “Show me the incentive and I will show you the outcome” – Charlie Munger Alignment of interests is one of the keys for successful investing. At Somar we evaluate the degree of interest alignment to identify long and short opportunities. We pay extra attention to changes in interest alignment to evaluate the […]

Takeaway.com – August 2018

      Takeaway.com This month we will take a deeper look at our investment in Takeaway.com (“Takeaway”). Our thesis provides a good illustration of what Somar looks for in a long investment: Order of magnitude growth opportunity driven by material improvements to the available customer value proposition Highly attractive and defensible business model Capable […]

Keys to Successfully implementing a short idea – July 2018

Keys to Successfully implementing a short idea On its surface, successful shorting may seem like a simple mirror image from buying a stock: you find a company whose moat and financials are being impaired[1], short it at an unsustainably high valuation, wait and then cover your position at lower price to lock-in your profit. However, […]

Incumbents, Disruption, and Short Opportunities – June 2018

Incumbents, Disruption and Short Opportunities “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Don’t let yourself be lulled into inaction” Bill Gates “You can resist an invading army; you cannot resist an idea whose time has come” Victor Hugo […]