Broad Run: Repetitive Advantage

Broad Run's suggestive name says (almost) it all: looking for long term compounders, i.e., for companies which can allocate capital at attractive rates of return over the long term (10 year test). These managers focuses on buying U$0.80 cents on at least U$3.00 instead of U$0.50 on U$1.00. Since they can't find many names, they are a concentrated fund and, thus, have more than one analyst looking into a company in order to mitigate untapped risks and ignorance. Other tidbits are (i) preference for conservative leverage and consequently high ROA instead of high ROIC on top of a mountain of cheap debt and (ii) executives' skin in the game. You shall allocate your time well by reading the article below.

Broad Run VII Profile Nov 2013 by Igor Chalhub