Silver Beech employs an opportunistic, intrinsic value-based strategy focused on high-quality, misunderstood companies in North America, specifically within the financials, real estate, and consumer sectors. We believe markets are inefficient, especially in the short term, due to the cognitive biases and idiosyncratic incentives of market participants. We use a methodical screening-based sourcing model to identify misunderstood companies. From this pool of investment opportunities, we build a high-conviction and concentrated portfolio of 6 to 12 equity holdings. 

Investment and portfolio decisions are guided by rigorous downside-oriented underwriting and risk management processes focused on taking intentional and identifiable risks at the position, industry, and portfolio level. The Fund is long-biased.

Silver Beech’s research intensity and process draws on its principals’ backgrounds in private equity, special situations, private credit, and corporate strategy. Our investment due diligence emphasizes management, vendor, competitor, and customer interviews; attendance of trade shows and the study of trade publications; extensive scuttlebutt research; and, in-depth company-level, industry, valuation, and capital structure analyses that focuses on business model durability, balance sheet strength, competition, management quality, free cash flow generation, and returns on capital. 

The Fund is managed by James Hollier (Portfolio Manager and Managing Partner) and James Kovacs (Managing Partner). Mr. Hollier and Mr. Kovacs have the majority of their net worth invested in the Fund alongside limited partners.