“Do unto other as you would have them do unto you”
–the Golden rule of Reciprocity
The Golden rule of Reciprocity is our governing principle. We put investors first in our incentives, conduct and communication. That is the way we ourselves would want to be treated if our roles are reversed.
Incentives: We donot charge fixed fee. We charge only performance fee (profit share). This lines up our well being behind our investors. We will do well ONLY if our investors do well. This forces us to invest and raise money only when it makes sense.
Conduct: We conduct our actions to ensure risk adjusted wealth creation for investors. We limit risk by (a) investing based on value investing principles within our circle of competence, (b) undertaking independent bottom up research, and (c) employing zero leverage.
Communication: The spirit of our communication with investors is the same that we would expect from anyone whom we have entrusted our own money – candid and transparent. In our communication with investors, mention of mistakes precedes accomplishments. We prefer telling bad news first.