Key Takeaways
- • Marlowe Partners delivered 30%+ annualized net returns between January 2019 and August 2021, with double-digit net returns sustained since the fund's 2014 founding, following a strategic optimization in 2018.
- • Co-CIOs David Steinberg and Eric Udoff employ a concentrated, fundamental long/short equity strategy modeled on principles learned from industry legends George Soros and David Tepper, combining traditional stock-picking discipline with modern behavioral finance and ESG awareness.
- • Eric Udoff's early career at Appaloosa Management under David Tepper (2006 onwards) provided foundational investment philosophy, with hands-on experience across equities and credit across cyclical sectors including metals, mining, autos, and industrials.
- • Marlowe operates as a globally-focused but NYC-based hedge fund, identifying investment opportunities across the US, UK, and Spain within a concentrated portfolio of high-conviction positions held over multi-year periods.
- • The fund combines "old school" fundamental research rigor with modern institutional practices, including behavioral finance frameworks, low-key corporate engagement, and deliberate analyst recruitment from private equity to enhance stock-picking capability.
Summary
Marlowe Partners represents a disciplined approach to concentrated equity investing, blending time-tested fundamental analysis with contemporary investment frameworks. The fund, founded in 2014 by David Steinberg, has generated annualized net returns exceeding 30% between January 2019 and August 2021—a period following the firm's strategic optimization in 2018. Since inception, Marlowe has maintained double-digit annualized net returns, demonstrating consistency through varying market cycles.
The fund's investment philosophy is deeply rooted in mentorship from prominent figures in global capital markets. Eric Udoff, co-CIO alongside Steinberg, spent his formative years at Appaloosa Management beginning in 2006, working directly under David Tepper. In this capacity, Udoff rotated between equities (approximately 67% of his time) and credit (33%), developing expertise across cyclical industries including metals, mining, autos, and industrials. This early exposure to multi-asset investing under one of the industry's most respected practitioners shaped Udoff's approach to risk assessment and opportunity identification.
Marlowe operates a concentrated long/short equity strategy characterized as "old school" in its execution: the fund conducts deep fundamental research, maintains a tightly curated portfolio, and holds positions over extended multi-year horizons. This concentration reflects the founders' conviction-driven investment approach, grounded in owner-oriented thinking and independent analysis rather than consensus-driven positioning. Steinberg and Udoff, who have known each other since university and collaborated across internships and early hedge fund roles, share an aligned long-term investor mindset that informs both portfolio construction and stakeholder relationships.
Modern investment considerations distinguish Marlowe's process from purely traditional equity approaches. The fund integrates behavioral finance insights, incorporates ESG considerations into fundamental analysis, and engages selectively with portfolio companies. Its investment mandate extends globally, with identified opportunities in the US, UK, and Spain, reflecting a broad yet disciplined geographic scope. The fund has also refined its talent acquisition strategy, recruiting analysts from private equity backgrounds to strengthen research depth and analytical rigor within a lean organizational structure. This combination of foundational stock-picking discipline with contemporary institutional best practices positions Marlowe within the evolving landscape of value-oriented, fundamentally-driven hedge fund management.
The fund's investment philosophy is deeply rooted in mentorship from prominent figures in global capital markets. Eric Udoff, co-CIO alongside Steinberg, spent his formative years at Appaloosa Management beginning in 2006, working directly under David Tepper. In this capacity, Udoff rotated between equities (approximately 67% of his time) and credit (33%), developing expertise across cyclical industries including metals, mining, autos, and industrials. This early exposure to multi-asset investing under one of the industry's most respected practitioners shaped Udoff's approach to risk assessment and opportunity identification.
Marlowe operates a concentrated long/short equity strategy characterized as "old school" in its execution: the fund conducts deep fundamental research, maintains a tightly curated portfolio, and holds positions over extended multi-year horizons. This concentration reflects the founders' conviction-driven investment approach, grounded in owner-oriented thinking and independent analysis rather than consensus-driven positioning. Steinberg and Udoff, who have known each other since university and collaborated across internships and early hedge fund roles, share an aligned long-term investor mindset that informs both portfolio construction and stakeholder relationships.
Modern investment considerations distinguish Marlowe's process from purely traditional equity approaches. The fund integrates behavioral finance insights, incorporates ESG considerations into fundamental analysis, and engages selectively with portfolio companies. Its investment mandate extends globally, with identified opportunities in the US, UK, and Spain, reflecting a broad yet disciplined geographic scope. The fund has also refined its talent acquisition strategy, recruiting analysts from private equity backgrounds to strengthen research depth and analytical rigor within a lean organizational structure. This combination of foundational stock-picking discipline with contemporary institutional best practices positions Marlowe within the evolving landscape of value-oriented, fundamentally-driven hedge fund management.
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