Summers Value Partners is a long-biased, concentrated value fund investing in five to 15 stocks on the long side and up to five stocks on the short side. We think of stocks as ownership interests in businesses; not pieces of paper on which to speculate. We will invest across all market caps but expect to add the most value in companies with market caps in the $50 million to $1 billion range. Our circle of competence includes the healthcare sector and other related non-cyclical industries including animal health and consumer health. Our analysis always begins with the balance sheet and cash flow statement, identifying companies with strong financial positions and a track record of positive cash flow.
We are committed to finding stocks that outperform over the long-term. We favor management teams that are shareholder friendly and whose interests are aligned with shareholders (preferably founders). We will invest across markets including the United States, United Kingdom, Australia and Canada in addition to other Western European markets. We intend to hold our positions for three to five years (or longer) to give the market ample time to close the valuation divide that our analysis has identified. Our strategy utilizes no derivatives, leverage or hedging, only absolute shorting. Ultimately, we strongly believe in keeping the investment decision-making process as simple as possible. All risk management functions are performed by the portfolio manager.
“Know what you own, and know why you own it.”