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Alternative Market Briefing

Texas-based value manager places all bets on small caps

Tuesday, May 09, 2017

amb
Chris Colvin
Benedicte Gravrand, Opalesque Geneva for New Managers:

A Dallas-based emerging manager talks about his passion for small caps and sticking to your guns - namely, staying concentrated and resisting the siren call of high AuM.

Breach Inlet Capital Management invests in North American small caps going through transformative changes. The long/short equity strategy began investing in March 2016.

Founder Chris Colvin, a former family office portfolio manager, comes from a long line of entrepreneurs and has always wanted to start his very own venture. For this, he followed his passion in small cap stock picking. And he feels his strategy has what it takes to stand out from the crowd.

"If you look at today's landscape, active managers are taking a lot of flak right now, in part a result of an eight-year bull market," he tells Opalesque. "I think sentiment will reverse as this bull market comes to an end, whenever that is. But I also agree with the critics that there are far too many large managers chasing the same ideas without much conviction; it's really difficult to create alpha when you become the market."

So his solution was to create a firm that exclusively targets North American companies with less than $3bn of market cap, and evaluates these through primary research. Another differentiating factor of his approach is that it only invests in s......................

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