"Change is the process by which the future invades our lives, and it is important to look at it not as something to dread but as something to welcome with open arms, for the opportunities it brings are often the key to our growth and success."
- Alfin Toffler
Our Point Of View
Original research requires dedication, focus and extraordinary creativity. There is no substitute for common sense fundamental research and hard work in stock picking and thoughtful portfolio construction.
We Embrace Change...
We embrace change, renewal and transformation as the primary source of investment opportunity.
What We Look For
Lionhearted Gazelles
Lionhearted gazelles are growth companies and founder led businesses. They are bold. Some are too small or lack sufficient trading volume to interest large institutional investors. Optics from reinvestment into the rapidly growing business often obscures attractive long-term business models.
Tigers find their stripes
We ride on the coattails of change in governance, leadership and renewed capital allocation policy. Sometimes solid businesses go astray. We have found that with reinvigorated stewardship they can regain their strength and prosperity. Hidden assets may be transformed into recognizable income or recurring cash flow before Wall Street recognizes this change and opportunity.
Gazelle spirited lions
Bargains with “mature” cash rich companies undergoing significant restructuring do exist, and they can be found. These companies are tackling hard problems today. They might be rightsizing the balance sheet, selling assets, launching new ventures, spinning off divisions and realigning for sustainable growth. At Cimarron, we identifying these situations as opportunities for transformation and investment.
Sourcing Ideas
At Cimarron, our emphasis is on meticulous document research, and encompasses a wide array of materials, from books to transcripts, regulatory filings, and the often-overlooked fine print. High quality information is accessible to those fortified with patience and focused attention. Contemplative analysis, deep reading and study require an environment dedicated to that purpose.
We proactively engage with a diverse spectrum of stakeholders. These include company management, competitors, former employees, and customers. Our interactions and relationships enable us to forge well-informed assessments and to make sound investment decisions.
The investment decision jumps out once the facts are clear.
Portfolio Construction
Portfolios are constructed one stock at a time. No two clients are the same. No two portfolios are identical.
Portfolio weightings, sector allocations, and geographic mix are opportunity dependent. We look beyond popular benchmarks and “style boxes” in portfolio construction.
Our client portfolio is selectively curated to focus on best opportunities. We manage a concentrated portfolio.
A typical holding period of 2 to 5 years allows for maturation and renewal. We optimize for capital appreciation rather than low turnover and we are not afraid to sell when the story changes.
Cimarron has a small to mid cap focus, often <$5 billion market valuation on the initial purchase decision.
Risk Management
Purchase
Before a purchase, the investment plan is mapped. Expectations, risks and contingencies are outlined in writing through an investment journal. Major assumptions, projected outcomes, deadlines, and timelines are developed in advance of purchase.
Progress Evaluation
Consultation with the portfolio companies is maintained through investor conference calls and direct meetings. Regulatory filings, press releases and industry news are monitored daily. Research is ongoing, and investments are hypothesis rather than thesis. When the reality of the story changes, the investment is revised.
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Cimarron Capital Management, LLC | Copyright © 2024
Cimarron Capital Management, LLC operates as a registered investment advisor based in El Paso Texas. The information provided here is designed for educational purposes and is not meant to offer or encourage the sale or acquisition of particular securities, investments, or strategies. Please be aware that all investments carry some level of risk and, unless explicitly stated otherwise, there is no guarantee of returns. It is advisable to seek advice from a competent financial advisor and/or a tax expert before adopting any of the strategies mentioned in this document.