Thinkshop Advisors LLC, the Investment Manager, assembles its portfolios of investments utilizing research and analysis skills developed over the past thirty years. Outperformance is sought via prudent concentration and elite stock selection. There is no intent to have a large diversified portfolio with an outsized number of investments, as that is seen as regressing performance towards the mean.
Portfolios will normally be hedged with short equity positions and options (or other derivative equivalents) in an attempt to manage risk, protect downside exposure and increase returns. Hedging is a critical element of the portfolio management. When executed properly, hedging can significantly enhance returns and minimize risk.
The Investment Manager structures its investment portfolios among three categories:
The Core Investments are comprised of the Investment Manager’s “Best Ideas.” These are portfolio holdings that the Investment Manager anticipates holding for a minimum of 3 to 5 years seeking long-term capital gains. Best Ideas are perceived as having superior revenue growth opportunities with excellent management teams and favorable product cycles. While growth opportunities are the main focus and concentration, occasionally, a Best Idea selection will be based on an analysis that indicates undervalued assets that in the Investment Manager’s view, have not been widely recognized by market participants.
Long-term opportunities are investments with an intended holding period of one year or more, but not necessarily an extended 3-5 year (or longer) commitment. These investments may be desirable for their steady performance with favorable growth possibilities, an attractive dividend, or some other special opportunity. Certain short ideas may also be long-term opportunities.
Short-Term Opportunities- Active Equities and Options Trading:
The Investment Manager will seek short-term trading opportunities based on macro and industry market conditions, news events and company-specific situations. Active trading will occur with the goal of generating recurring income and finding prudent speculative opportunities with favorable risk-reward characteristics. The Investment Manager will deploy a “trade around” strategy utilizing both “covered” and “uncovered” options in an attempt to maximize total return.