At Altimeter Wealth we utilize active portfolio management. Our focus is on long-term growth by investing in public companies, including ADR's, foreign stocks, and across all market capitalizations. We expect these companies to become the leaders of disruptive innovation. Our objective is to deliver long-term capital appreciation over a 3-5 year period.  The longer the duration, the greater potential appreciation of capital. Innovation continues to change lives, businesses and the world, creating opportunities to own the next big thing. We consider how big this new technology will become and who's best positioned to be the winners.

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As new information comes in, our views are also changing. Unlike venture capital and private equity, we can exit a position very quickly and efficiently. Innovation will continue to advance and we focus on that. Events happen ongoing that have dramatic affects on the markets. We believe that in 2020, Covid permanently changed the world. Leading to a better, a cheaper, a faster, a more productive, and a more innovative companies. 

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Shifting labor. It appears that some workers will return to their workspace and some will remain remote. Let's call it a hybrid work environment. Communication between all employees is critical. New disruptors are listening to clients and responding with better products and services - meeting needs. Some companies help us work from anywhere, focus on social commerce, and find ways to lower costs and increase growth. Those are the kinds of disruptive innovators we own in our portfolios. A winner-takes-most mentality.

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The markets are inefficient. The markets have a short term time horizon. We believe traditional Wall Street research minimizes the affects of disruptive innovation, while focusing on generating headlines. The traditional investor fails to recognize the magnitude of innovation and the opportunities it creates. Many investors focus on short-term time horizons and uncertainty. We focus on capital appreciation over 3-5 years.

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We embrace innovative companies early in their development. Many of these companies that are smaller. However, many of these upstarts can become winner-takes-most companies. We invest in emerging industries that appear to be shaping the future. We believe that winners can keep winning. 

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Innovation is found in all areas of the market.

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We are active managers taking advantage of price dislocations, while most investors are in the passive market indexes. Many investor's have flooded into passive investments.

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According to Dalbar, Inc., a company that studies investor behavior and analyzes investor market returns, consistently shows that the average investor earns below-average returns. Reasons they site:

 

      1. Buying high. 

 

      2. Overreacting during times of uncertainty.

 

      3. Investors believe they can predict the future.

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We believe that market volatility, fear and uncertainty keeps investors from gaining better returns. We think beyond this week, beyond this month, beyond this quarter and choose to focus on 3-5 years. Market volatility gives us the opportunity to build positions in our high conviction names. 

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Our thesis is to identify disruptive innovations. We focus on the big picture or how the overall economy and other factors drive the market, and stock prices. We identify the potential disruptive universe and quantify disruptive innovation themes and opportunities. Reevaluate total market potential and economic. For instance, let's consider electric vehicles. 

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What's the adoption rate now? Where will it be in 2028? Let's say Wall Street says it will be 6-8 million. While we say it may be 40 million. If we are correct, it means that the stocks associated with electric vehicles are undervalued. We then identify the leader in the area and invest proportionately.

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We balance our 3-5 year time horizon, while the information rate accelerates and changes occur quickly. As we review ongoing information, we compare that with our investment thesis.

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As we review on-going information, we compare that with our investment thesis. We consider stock selection and valuation and aim to select the best positioned companies. Review all research briefs. Determine company scores. Consider valuation models. As we review the portfolio and risk management, we adjust for changes in conviction. We will add to or decrease positions baed on our analysis. Tracking portfolio results and ongoing stock analysis determines where we invest. 

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If technology changes, or our view changes, or a new innovator comes along that we think will be more disruptive, we make the changes to our positions. We can do this quickly and efficiently. As the world changes, we have the ability to exit and find new opportunities. Unlike a venture capital or private investor, which may take years to unwind a position.

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Sometimes, we will come back to a position we have exited. The company has made changes to become better. Cost declines, demand increases, and other innovations make them attractive.

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1.   Analyze Disruptive Innovation Themes

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2.  Determine Rational and Expectation of Companies

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3.  Research and Due Diligence of Companies

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4.  Ongoing Portfolio Monitoring and Analysis

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Innovation demands an open approach to gain an understanding of full market potential. 

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Be Smart.

  

Be Innovative.

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