New Managers December 2012

Profiles - Two emerging managers, Tower Capital and Fat Pitch, speak about their new fund

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Fat Pitch Capital aims to be right over time, not all the time

Fat Pitch Capital, LP is a long-biased global value partnership that is modeled after the original Buffett- Munger partnership. It aims to be right over time and does not want to fall into a trap of trying to be right all the time.

It is a Delaware-domiciled investment partnership located in Charlotte, NC managing $4.5m in AuM, and it is currently featured in Opalesque Solutions' Emerging Managers Database.

In baseball jargon, a "fat pitch" means a pitch that is located exactly where the hitter is expecting it.

The fund focuses on investing for long term capital appreciation and capital preservation, and seeks to run a very concentrated portfolio of equity investments (primarily in North America) with the goal of acquiring companies with outstanding long-term economics at a reasonable price.

Before running Berkshire Hathaway both Warren Buffett and Charles Munger, ran investment partnerships. Munger is currently Vice-Chairman of Berkshire Hathaway, and Buffet describes him as his partner.

In an interview with Opalesque, Robert W. Deaton, CFA and Fat Pitch's portfolio manager said, "Our strategy is doing fine year-to-date but we would like to do better. We however, do not want to fall into the trap on trying to be right all of the time. We want to be right but over time. Moreover, time arbitrage is a competitive advantage in a market where we believe most are trying to out-guess the other guessers."

When asked how the fund's strategy is faring against the volatile market conditions, Deaton said that he and his team believe that discussing monthly performance is an "anathema" because "it is random and meaningless." He added, "again, we focus on longer term time horizons and only seek out like-minded L.......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.