In February, 2010, I wrote a white paper entitled, “Emergence Theory and the Creation of a Superior Investment Advisor.”[1] We’d just started Tiburon Capital Management a few months earlier and I believed we were building something unique and comparatively advantaged to other firms. One point being that methodology and culture form a firm’s DNA – our cultivated methodology (“BRACE”) and culture would produce outperformance and a differentiated portfolio. Our recent profitable experiences with Nortel Networks (“Nortel”) and Interdigital, Inc. (“IDCC”) bear reporting as evidence.
The Coherent Investment Methodology and Impact of Emergence
The “BRACE Methodology” [4] is our investment approach, one I’ve burnished over nearly twenty years of investing. At Tiburon, it is taught, studied and refined. Like organisms in a system, there exists a shared goal achieved with developing collective knowledge and experience, forming an institutional memory. Like asymptotic expansion in mathematics, we can never achieve “perfection,” but can improve with each passing day, month, year; the aggregate skill base of the organization improving in ways not captured by firms with less rigorous or un-codified methodologies, or silo-ed professionals with no interest or incentive to improve together.
If BRACE provides the “bones” of the investment process, the people utilizing it, and interacting produce a richness around it that affords everyone unlimited freedom - just within the framework. In the practice of our trade, all of us make each other better, see connections we’d not once seen, develop ever more intricate ways of considering each of the five prongs of BRACE. To think that a codified and specific system is narrow and stifling would be dead-wrong. In fact, arguably a system that we all utilize, with its varied elements provides a framework within which to work, that is actually liberating. [u]The excitement of this is that over time, like a wine or stew, the flavors get more intricate and special.
What we have accomplished in wireless telephony generally, and with our Nortel, IDCC and MOT longs, NOK and RIMM shorts specifically, is not one-off for us – it is evidence of our differentiation.[/u] And given our methodology and culture – our Tiburon institutional DNA –it suggests our likely long term viability and outperformance.
Peter M. Lupoff August, 2011 Tiburon Capital Management, LLC
http://www.tiburonholdings.net/Current_Market_Climate.php
original link provided by BKfinancier
"The world is a dangerous place to live�not because of the people who are evil, but because of the people who don't do anything about it." �Albert Einstein
| 
