Apply Clayton Christensen’s framework for technology S-curves on public companies.
The fund tries to buy shares of underdogs that are reinventing 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 become household names and multiply our investment several times over within five to ten years. These are typical characteristics for potential megabrands:
- Communicate a visionary mission statement backed by executional excellence
- Conquer a niche market but ultimately aim to become category leader
- Possess competitive advantages that are difficult to replicate
- Already have a loyal customer base as evangelists
- Misunderstood or ignored by most investment analysts and are therefore mispriced
Every market cycle offers its own distinct growth stories which we dub ‘generational compounders’. It is the fund’s task to accurately detect the wind of change — its zeitgeist, if you will — to capture generational compounders early while they’re being misunderstood. Being non-consensus and right is the only way to achieve extraordinary returns.
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.
An investment is ultimately an investment in people. The world’s richest are overwhelmingly founders of their own companies which they were somewhat forced to hold. We aim to share a similar entrepreneurial vantage point by committing for the long term. With our capital, we decide whose journey we wish to accompany.
The portfolio reflects our best guess about the future and the genius of this capital allocation strategy is eternal patience. We’re not under pressure to report on a quarter-to-quarter basis but rather measure ourselves in decades.
Success is if the mainstream starts raving about a brand which we had identified years before. When a company’s S-curve matures, we initiate re-distribution to the next generation of underdogs.
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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.