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Investment Objective

The Fund aims to achieve long-term growth in value and to outperform its stated benchmark by becoming a long-term investor in its selected stocks. The investment portfolio will be concentrated, typically holding between 10 and 15 equities. The Fund employs disciplined financial and operational criteria to ensure it invests in high quality securities, and it aims to concentrate its capital in businesses that have:

  • Plenty of growth opportunities
  • Superior return metrics
    • Return on assets
    • Return on invested capital
    • Return on equity
  • Attractive gross margins
  • Strong balance sheets
  • Great products that enhance the standard of living and that people need
  • Revenue driven by everyday, small-ticket, repeat, predictable transactions
  • Competitive advantages in the form of patents, high switching costs, and strong brands
  • Great, incentivized business leaders that have an alignment of interest with shareholders
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Our Values

  • No Outperformance, No Performance Fee

  • No Upfront Fees

  • No Debt or Derivatives

  • No Shorting Or Leverage

  • No Market Timing

  • No Hedging

  • No Margin

  • No Emerging Markets

  • No Cryptocurrency

Alignment of Interests

The management team has invested a significant portion of their respective net worths’ in the Fund on the same terms as their investors. The management team will contribute a large portion of future partnership distributions back into the Fund. An investment in the Fund should be viewed as a long-term investment. We are passionate about backing our businesses, as our aim is to be the best fund, supported by the best investors.

Main Takeaways

The zCap Equity Fund concentrates its capital in quality growth equities. The Fund is a long-term investor in its chosen equities. The fund seeks to outperform its stated benchmark, The MSCI World Index, over the long term.

How We Are Different

  • Concentrated in quality growth equities
  • Maintains a portfolio of 5-15 quality growth equities
  • Only invests in the few superior businesses available to the general public
  • Deep understanding of our businesses
  • We believe volatility is a poor measure of risk; the probability of loss or injury is a better measure of risk
  • Noah and Ryan have insight into businesses that cater towards younger consumers (i.e., Generation Z)

About the Benchmark

The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries*. With over 1,500 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

*DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US.