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FACT Approach

The FACT investment strategy is one of concentrated global best ideas, absolute returns. Focusing on geographies that comprise >70% of global GDP growth, we take a micro-thematic approach to ideation and focus on a narrow set of sub-sectors that enjoy secular and sustained industry tailwinds. In reviewing the supply chain and competitive landscape, we invest in quality compounding companies at reasonable valuations with attributes that include top tier ROIC and capital allocation, favorable market structure and consistent market share gains, significant competitive moats, robust earnings forecastability, and long runway for growth. We have a multi-year investment horizon for our longs and absolute return, single name shorts. ​

 

We have both a Long Short and Long Only product for our investors.

Transparency is the T in FACT

Our ethos is to show rather than tell the depth of our work by providing investors full access to our portfolio. Transparency creates an additional layer of accountability to replicable process.

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Concentration in Microthemes

Our microthematic approach to portfolio construction is designed to combine a generalist's creativity with subsector specialists' depth. With microthemes, we focus on neighborhoods where there is high rate-of-change and structural market growth and focus that drives higher rerating potential. We first identify multi-year microthemes and then try to distill out what we consider to be the best stock within the associated value chain or, in other words, the "best house in the best neighborhood."

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Investigative Research and Intellectual Honesty

With over 600+ channel checks every quarter, our due diligence process is conducted with an investigative approach. Trust nothing, verify everything. 

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Incentive Alignment, Internally and Externally

Internally, we have an ownership compensation model to prioritize portfolio objectives for long-term compounding, not individual interest for short-term. Externally, our investor terms are designed for long term incentive alignment. 

©2025 by FACT Capital, LP. All Rights reserved. 

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