Value Investing Club – Membership Offering

TudorM's picture
TudorM - Certified Professional
Rank: Monkey | banana points 37

Are you an active value-oriented investor looking to join a group of like-minded individuals building an investment track record? This may be the right place for you.

We are a small group of young investment professionals that consider launching a value investing fund in the short to medium term. To prepare for this, we founded Blu Peak Investment Club in July 2017, a stock-picking investment club with an emphasis on value investing. We view Blue Peak as an opportunity to enhance our investing & operational skills in a professional setting and as a platform to meet potential business partners (Fund co-managers).

Our view as investors is that we can benefit from (i) identifying companies that create superior value over time, (ii) having a global, opportunistic approach, and (ii) exploiting market inefficiencies and emotional behaviour of markets' participants, buying these companies below our calculation of intrinsic value.

We are young (25-30s) and some of us already have 3-5 years of experience in stock-picking, private equity, and private debt with blue chip institutions. We have fundamental analysis skills that we want to enhance through Blu Peak, by proposing investment ideas and discussing these in a professional setting to challenge our own beliefs and enrich our views on different companies, industries, and markets. As per October 2018 NAV, Blu Peak has generated annualized gross returns of over 17%.

What Blu Peak Offers
- An opportunity to build a personal investment track-record in a semi-institutionalized environment
- Investing education: we foster an intellectually challenging environment
- An opportunity to specialize in a certain sector or type of transaction in order for our team to increase our circle of competence
- Investment ideas generated during the meetings that you could scale on your own equity
- A selected group of aspiring investors that may eventually become business partners
- A structured decision-making process, striving for highest value for time and energy invested

What We Expect from You
- Strong interest in fundamental/value investing: See "Warren Buffet"-style investment strategy below
- Investing literature: You are familiar with Benjamin Graham's "Intelligent Investor", Warren Buffet's investor's letters, Mary Buffett's "Buffettology", Seth Klarman's "Margin of safety", etc;
- Personal track-record: min. 15% returns over a period of min. 3 years on a portfolio you managed
- Investing skills: Stock picking/fundamental analysis or lateral investing (private equity/debt, equity research, other)
- Effort for drafting investment proposals: You can propose a minimum of 3 stock ideas per year; we expect quality, not quantity, i.e. superior understanding of the company, thorough research and concise pitches. We expect time involvement is a minimum of 10 hours per month
- Conviction: You are able to build an independent opinion about stocks, identifying both outperformers and value traps
- Temperament: We invest only if Mr. Market gives us the right price, as opposed to often selling because the market goes down or buying because the market goes up
- Patience: We are able to wait to realize full value according to our own target price/valuation
- Opportunistic behaviour: You will search for the best stock ideas in a way that may give Blu Peak an edge
- Efficiency: You like efficient communication and decision-making, so that you can easily cope with other commitments in your life
- Personal equity: You invest your own equity in the Club's pooled money, as you want to have 'skin in the game' and show that you put your money where your mouth is

Blu Peak's current structure
- 5 members that pool their capital in two joint stock accounts and make investment decisions based on majority's vote
- Monthly meetings or need-based, formed as an Investment Committee - members are expected to participate on Skype; every member has to exercise his/her voting right at every meeting or on email
- While the hub is in Paris, France, Blu Peak is functioning independent of members' location

Investment Strategy
"Be greedy when others are fearful, be fearful when others are greedy" - Warren Buffet

Investment approach: Fundamental value analysis, business-owner mindset stock-picking and buy and hold strategy with limited opportunistic trading to benefit of high volatility
Asset class: Primarily equity, but other securities considered if they offer a favourable risk/return profile
Investment horizon: At least 3 years (ideally 5 years), with identified catalysts within next 1-2 years
Geography/sector: Agnostic
Benchmark: Relevant index according to geography and capitalization of assets
Target returns: 15% compounded YoY for min. 5 years
Additional areas of interest: Some emerging markets (Asia/China/CEE), machine-learning, private markets

If you are interested to be part of this initiative, please send your interest to Tudor Mafteianu and Morgan Fourdrigniez at [email protected] and Morgan.fourdrign[email protected]. This could be an informal introduction about who you are (may include a CV) and why you are interested.

Disclaimer: we are currently employed by investment funds or financial institutions and this initiative is outside of and unrelated to our current employment.

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Nov 24, 2018