Inspired by Long Term Compounders

Eaglestone Capital invests in businesses that (a) can grow without needing externally raised capital (b) possess enduring competitive advantages and hence high returns on invested capital and (c) are run by management teams that possess the ‘fiduciary gene’ - they are dedicated to shareholders and shareholder returns.

Does this strategy work? We could show you how the fund has performed over an historical period, assuming an investor had stayed fully invested over that same historical period and you might be impressed (or skeptical, given your predisposition). Notice the highlighted phrase “assuming an investor had stayed fully invested” and perhaps you can imagine what we are thinking.

Studies have consistently shown that investors often achieve lower returns than the funds they invest in, primarily due to the timing of their investments. A notable example is Cathie Wood's ARK Innovation ETF (ARKK). Since its inception in 2014, the fund has delivered an average annual return of 9.7%. However, the average investor in ARKK has experienced an annual return of -17%. This significant disparity is largely attributed to investors pouring substantial capital into the fund during its peak in 2020, only to face considerable losses in the subsequent years (see Barrons article on Ark Invest).

So reach out and we can share our past performance results along with how Eaglestone Capital’s process can generate returns for patient long term investors.