Investment Philosophy
Camini Capital seeks to generate superior investment returns with a concentrated long-term, value-oriented approach designed to participate in investments that we view as having asymmetric prospective returns relative to the underlying risk. We are industry agnostic and believe the market’s temporary price inefficiencies can provide opportunities for outsized investment returns to diligent capital allocators and investment managers like Camini Capital. We aim to participate in investments that have the highest overall compatibility with our key investment criteria that we call "The 4 Q's" outlined below.
Quality of Business
Operates in an industry with significant barriers to entry and has a defensible model differentiated from competitors
Pricing power
Possesses tangible assets with operating leverage for growth
Provides an integral product or service to society
Strong intellectual property and adequate legal protections
Quality of Management
History of strong performance and ability to make difficult decisions that optimize long-term value creation for the company
Prudent capital allocators
Compensation packages aligned with shareholders’ and broader stakeholders' interests
Depth of management team “bench”
Quality of Value
Trading at a discount to our long-term view on the intrinsic value of the business as well as the relative value of its peers
Special situation (i.e., restructuring, management turnover, extraordinary economic event) creates market dislocation in price vs. underlying value
Overlooked securities on basis of size, industry, lack of analyst coverage
Quality of Balance Sheet and Accounting
Positioned to be free cash flow generative in the long term
Situationally appropriate and manageable debt levels
Sufficient liquidity to fund future growth at the lowest cost of capital while minimizing dilution of existing shareholders
Conservative accounting disclosures
Reputable auditor