Focus On Companies With Synthetic Leverage
ACML offers its Master Portfolio to family offices, allocators and high net worth clients. ACML employs a value investing philosophy to construct a long-biased equity portfolio with approximately 20 positions, with the aim of compounding returns over the long-term. ACML seeks out superior businesses with “synthetic leverage.” These companies have advantaged business models and can safely leverage alternative third-party capital or operations to generate significant incremental cash flows, which can be reinvested at high rates of return over long runways.
ACML believes such companies can compound in value over many years, especially when run by talented managers who are aligned with shareholders.
Over 70% of our portfolio is invested in companies that have synthetic leverage.
Synthetic Leverage is essentially the use of non-recourse external capital at no (or low) cost to generate additional returns.
Examples Of Synthetic Leverage
Public holding companies
Opportunities for significant value creation through intelligent capital allocation, as market often does not fully price in the value of subsidiaries
Insurance float
Invest insurance “float” in addition to their own capital to generate higher returns on investments
Alternative asset managers
Invest 3rd party assets under management in addition to their own capital to generate significant recurring fees to enhance returns on investments
Marketplaces
Capital efficient – leverage the work/inventory/costs of others
Powerful winner-take-most network effects
Powerful winner-take-most network effects
Royalty incomes
Leverage business partners to collect high margin recurring royalty income
Companies with ancillary income
Leverage strategic relationships with customers to cross-sell high margin services
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Alphyn Capital Management, LLC
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Note*: Registration does not imply a certain level of skill or training.
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Alphyn Capital Management, LLC (ACML) is a state registered investment adviser. ACML may only transact business in those jurisdictions in which it is registered or qualifies for an exemption or exclusion from registration requirements. ACML’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of ACML’s web site on the Internet should not be construed by any consumer and/or prospective client as ACMLs solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by ACML with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of RIA Firm Name. A copy of RIA Firm Name’s current written disclosure statement discussing ACML’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov. This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice. The firm's strategies may not be suitable for individual investors given the potential for higher volatility and concentration of capital among a small number of investments.
The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions, and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of author, maydiffer from the views or opinions expressed by other areas of the firm, and are only for general informational purposes as of the date indicated.
Note*: Registration does not imply a certain level of skill or training.
DISCLAIMER
Alphyn Capital Management, LLC (ACML) is a state registered investment adviser. ACML may only transact business in those jurisdictions in which it is registered or qualifies for an exemption or exclusion from registration requirements. ACML’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of ACML’s web site on the Internet should not be construed by any consumer and/or prospective client as ACMLs solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by ACML with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of RIA Firm Name. A copy of RIA Firm Name’s current written disclosure statement discussing ACML’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov. This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice. The firm's strategies may not be suitable for individual investors given the potential for higher volatility and concentration of capital among a small number of investments.
The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions, and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of author, maydiffer from the views or opinions expressed by other areas of the firm, and are only for general informational purposes as of the date indicated.
Note*: Registration does not imply a certain level of skill or training.
© Copyright 2019-22 | DISCLAIMER This website is not an offer or solicitation in any jurisdiction in which the firm is not registered. For more information, please read the firm's form ADV Part 2A. The firm's strategies may not be suitable for individual investors given the potential for higher volatility and concentration of capital among a small number of investments. The firm's strategies are meant to be a part of an investor's broader, multi-strategy, asset allocation.
© Copyright 2019-22 | DISCLAIMER This website is not an offer or solicitation in any jurisdiction in which the firm is not registered. For more information, please read the firm's form ADV Part 2A. The firm's strategies may not be suitable for individual investors given the potential for higher volatility and concentration of capital among a small number of investments. The firm's strategies are meant to be a part of an investor's broader, multi-strategy, asset allocation.