The partnership follows a fundamental investment strategy using a research process that relies heavily on company-specific analysis. It is a “quality over quantity” approach to identifying and evaluating great businesses. Many of Bumbershoot Holdings’ core portfolio investments exhibit common traits including: positive growth, barriers to entry, scalable operations, strong balance sheets, numerous reinvestment opportunities, and high-quality management teams.
After identifying and evaluating specific companies, the partnership then seeks to invest at price levels that significantly discount the estimated future cash earnings of the business.
Risk is managed first and foremost through the analytical process. It is knowing what we own, why we own it, and what we believe it to be worth that will help to substantially reduce the chance of permanent capital impairment. It is a process that is repeatable over and over again; and scalable at increasing amounts of capital under management.