Apply Clayton Christensen’s framework for technology s-curves on public companies.
The fund tries to buy shares of underdogs that challenge the status quo and that will be beneficiaries of extraordinary growth as soon as the tide turns in their favor. They have the potential to 10x our capital in 5 to 10 years.
When a company completes its s-curve by maturing to its full potential, the fund will initiate re-distribution to the next generation of underdogs. Ideal candidates typically
- communicate a visionary mission statement,
- conquer a niche market to aim for mass market adoption,
- have competitive advantages that are difficult to replicate,
- have a loyal customer base as evangelists, and
- are misunderstood or ignored by most investment analysts.
Every market cycle offers its own distinct growth stories and it is the fund’s task to accurately detect the wind of change — its zeitgeist, if you will. The portfolio reflects our best guess about the future.
We’re not a proponent of a diversified portfolio. Quite the contrary: We firmly believe that there are at most a handful of companies that we need to be invested in.
While high returns are generally coupled with high risks, we rather believe that high risks solely emerge from a lack of understanding of what you do. We value revenue diversification over portfolio diversification. Warren Buffett once said that it’s wise to “keep all your eggs in one basket, but watch that basket closely.”
The genius of this capital allocation strategy is eternal patience. We’re not under pressure to report on a quarter-to-quarter basis. We rather measure ourselves in decades.
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Matt holds a Bachelor in Business Administration. Although he dabbled into stock trading at age 15 during the dot-com bubble, he only epitomized his passion at Deutsche Börse in 2010 by being exposed to Germany’s top investors and traders. During that time, he wrote his senior thesis on The Psychology of Financial Markets which asserts that market participants cannot act perfectly rational due to their inherent behavioral biases.
He then became Securities Analyst at State Street in 2011 and discovered that many of his industry peers did not use a framework to navigate the market. After modeling out a framework and convincing friends and family to join, Hagemann Capital came into being in June 2013.
Before turning to portfolio management full-time, he joined ION as Business Analyst for 5 years to automate investment decision-making for financial institutions, central banks and corporations. Learning to code there gave him another edge in technology and cloud computing companies.