We’re investors, not speculators.

We invest in companies that demonstrate durable competitive advantages, exceptional management, and the ability to grow for the long-term by reinvesting free cash flow at high returns.

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01

Fundamental analysis

Prices of financial instruments change much faster than their actual intrinsic value. Fundamental analysis enables us to estimate the true value of a company. It includes detailed and systematic analysis of industry trends, competitive dynamics, company’s business model and historical financial results.

Management

Competitive advantage

Reinvestment

Great investment

WHAT DO WE LOOK FOR IN INVESTMENT?

Management

We invest in companies that have exceptional management with proven ability to efficiently allocate capital at above-average returns on their investments.

Bad management?

Solid companies with bad or below-average management will eventually become bad and below-average companies.

WHAT DO WE LOOK FOR IN INVESTMENT?

Competitive advantage

We look for companies that have strong and durable competitive advantages like brand power, lowest production costs, superior distribution channel, valuable technology or that exhibit strong network effects.

Commodity trap?

Companies without strong differentiation factors relative to competitors can at best achieve average results within its industry.

WHAT DO WE LOOK FOR IN INVESTMENT?

Reinvestment

Company’s ability to reinvest its capital at high, adequate returns on investment is a key component of achieving attractive, long-term returns for shareholders.

Capital misallocation?

Companies with inefficient capital allocation programs can lead to long-term destruction of shareholder value.

WHAT DO WE LOOK FOR IN INVESTMENT?

Great investment

Company with durable competitive advantages, led by exceptional management with integrity and ability to reinvest its free cash flows to ensure sustainable above-average return on capital to its shareholders.

02

Patience is key

Although most relevant research’ shows that strategies based on high portfolio turnover achieve lower returns, most of the Wall Street investment firms have an average holding period of an investment of only 11 months.
Myopic focus on most recent events drives investors to pay high prices for what is currently popular or to sell out-of-favor companies at unreasonably low prices. Investors with longer investment horizon of 3-5 years can gain substantial competitive advantage over short-term oriented investors.

11 months

Average holding period of an investment at Wall Street investment firms

Disadvantages

Higher trading costs

Speculative trading doesn’t consider long-term potential of company

Exposed to short-term volatility in the markets

36-60 motnhs

Expected holding period of an investment at N3CP

Advantages

Lower trading costs

More time for company to achieve its long-term potential

Avoiding short-term volatility in the markets

03

Portfolio construction

When constructing investment portfolio for our funds we rely on detailed and systematic analysis with the goal to identify great companies at reasonable prices.

Universe of potential investments

Portfolio construction starts with universe of potential investment in global capital markets.

Analysis of macro & micro factors

We take into account global macroeconomic factors like interest rates, exchange rates, central bank policies and microeconomic factors of specific industries to narrow potential investment candidates.

Fundamental analysis

We strongly rely on fundamental analysis, a basis of all our investments, to identify great companies with above-average return potential.

Price

Great company is not necessarily a great investment if the price we pay is too high.

N3 portfolio

Investment ideas that meet our criteria for investment are added to portfolio.

Ask us

Contact us with all your inquiries and we’ll answer them as soon as possible.

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