Approach
Process, Not Prediction
We do not forecast macro conditions, predict market direction, or trade on short-term catalysts.
We identify permanently mispriced franchises, document our analytical basis before investing, and hold with the patience that permanent moats deserve. Every position in the portfolio has a written thesis memo completed before any capital was deployed. Every exit requires a specific, pre-committed reason. Nothing is discretionary after the framework is set.
The Four-Question Screen
Every idea must pass all four — a single No ends the analysis
1
Can I explain this business in two sentences?
Circle of Competence — if it cannot be explained simply, it is not understood well enough to own.
2
Will this business earn superior returns on capital in 2046?
Moat Permanence — the 20-year ownership test applied before any valuation work begins.
3
Is there an identifiable, contestable reason the market is mispricing it?
Mispricing Thesis — the bear case must be understood and specifically rebutted, not dismissed.
4
Does the current price offer at least 20% discount to conservative intrinsic value?
Margin of Safety — estimated using DCF, earnings multiple, and FCF yield cross-referenced.
The Investment Process
01
Written thesis before every trade
Every position has a written thesis memo — including moat analysis, DCF valuation with bear/base/bull scenarios, pre-committed falsifiability criteria, and five quantitative monitoring metrics — completed and dated before any capital is deployed. The memo is signed, PDF-stamped, and stored permanently. It is not written after the fact.
02
Pre-committed exit criteria
Each thesis memo specifies the exact conditions under which the position will be sold — specific, quantitative, and written before entry. Price decline alone is not a sell signal; it is a review trigger and potential add opportunity. We sell when the moat is structurally impaired, the valuation becomes extreme, or a pre-committed criterion is triggered.
03
Quarterly monitoring and attribution
Every position is reviewed quarterly against its five monitoring metrics. A Quarterly Performance Report is produced within 30 days of each quarter-end covering returns, attribution, thesis status for each position, and portfolio manager commentary. These reports are maintained as a permanent record from inception.
04
Permanent ownership orientation
The natural holding period is forever. Target portfolio turnover is below 15% annually. We do not trade on earnings, macro events, or sentiment shifts. The compounding of exceptional businesses over long periods is the entire strategy — and it only works if the investor does not interrupt it.
Portfolio Characteristics
Positions
8–10 concentrated holdings
No diversification for its own sake. Every position is a conviction bet.
Universe
Global listed equities
US, Europe, and Asia. All holdings are liquid and exchange-traded.
Leverage
None
Long-only. No margin, no derivatives, no short positions.
Benchmark
MSCI World Index
Net total return, USD. Secondary: S&P 500 Total Return.
Turnover Target
Below 15% annually
Minimizes tax friction and transaction costs. Permanent ownership orientation.
Eligibility
Accredited investors only
As defined under Rule 501 of Regulation D. Minimum investment discussed individually.
Governed by a written Investment Policy Statement. Duramen Capital operates under a formal Investment Policy Statement signed at fund inception on May 20, 2026. The IPS defines the investment philosophy, position sizing framework, risk management rules, performance targets, and record-keeping requirements. Every investment decision is made within the constraints of this document. It is not changed retroactively.