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 and strongly aligned […]

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 […]

Somar Turns 2 Years Old – May 2018

Somar turns 2 years old! The first two years have been an exciting journey for Somar. As we start our 3rd year we are very excited to continue to improve the quality of our portfolio, taking advantage of the large opportunities in front of us. This month, we thought it would be good to hear […]

Our Process to Evaluate Investment Opportunities – April 2018

Our Process to Evaluate Investment Opportunities “You should never take more than you give In the circle of life” Elton John – Circle of Life, Lion King Soundtrack   The focus on creating more value than that which you capture is core to Somar. We believe we can deliver our investors a level of excess […]

Drawdown: Part II – March 2018

Drawdown – Part II In March we didn’t protect the downside as well as we did in February. Most of our losses in the month came from our European long book. A lot of our high conviction names declined significantly amidst the volatility and the absence of news post earnings season. Our work during the […]

Drawdown – February 2018

Drawdown The past few weeks have brought with them volatility that has not been seen for 2 years. With that, you may be wondering how your portfolio fared during this period. While the S&P 500 saw a drawdown of -10.44% between January 29th through February 8th and the Eurostoxx50 went down 7.43%, Somar’s performance was […]

Value Creation – January 2018

Value Creation At Somar we believe the next few years will come to be known as the Golden Age of Investing (see June 2017 letter). Around the world, the current breadth of innovation compounded by accelerated consumer adoption is creating abundant opportunities for entrepreneurs to offer their customers a step-change improvement in value proposition. Entrepreneurs […]