Dark Horse Exists Because There is a Better Way to Invest

  • Dark Horse launched in 2018 as a vehicle to capitalize on the inefficiencies created by the growth of mega-billion dollar investment managers.
  • The mega-managers are forced to focus on the largest investment opportunities, creating pricing inefficiencies in smaller opportunities due to the reduced level of competition. 
  • Dark Horse proactively seeks to compound value throughout the entire business cycle by focusing on under the radar opportunities in inefficient markets. 

Well-Defined Research Process

  • Proactively identify structural change to highlight investment themes and opportunities.
  • Focus on capitalizing on misunderstood companies subject to such change.
  • Intrinsic value discovery based on levered free cash flow forms the foundation of any investment.
  • The goal is to discover cash on sale. 

Flexibility, Size, and Speed

  • Target the most asymmetric investment opportunity regardless of the security.
  • Focus on small and mid-cap opportunities that are not followed by larger funds.
  • No bureaucracy - fully researched investment opportunities can be executed quickly.

Repeatable Success

  • Post-mortem evaluation to determine whether success was caused by skill or luck.
  • Why did we win?  Why did we lose?  Were we right to pass?
  • Understanding the actual drivers of a win or a loss enable the ability to create and continuously optimize a successful investment process.

Win with Integrity and Class

  • Approach every day as a competition.
  • A Dark Horse win is a loss for the counterparty; show class and humility - paths will cross again.