Welcome to Massif Capital!
We are a long/short equity fund focused on global opportunities in liquid real assets and industrials. Our work experience with governments in frontier markets, operational experience with growing energy companies, and time spent managing downside risk for project finance lenders gives us a unique edge in a crowded world of investment professionals. The firm caters to long-term investors who recognize the value of in-depth research and active management. We utilize a fundamental, bottom-up investment process that is historically informed and value driven. To maximize optionality, the portfolio is unconstrained by geography, industry or benchmark considerations. Massif Capital’s investment strategy is suitable for capital owners and savers seeking to protect their financial endowments and achieve:
- Attractive full cycle returns
- Downside protection against inflation and event driven risk; and
- Low correlation to major equity markets
Our investment practice is primarily concerned with the nature of risk and value as it relates to protecting, enhancing and deploying the irreplaceable capital of our investors into a concentrated portfolio of economically productive assets. We seek to capitalize on the poor understanding of real world risk by financial markets and the frequent failure of financial market participants to recognize scarce, enduring and durable sources of value. This requires us to be historically informed and intelligently contrarian: learning things others don’t and understanding things as they are rather than as they are believed to be. At Massif Capital, we are empirical rather than dogmatic, agnostic rather than ideological. Not only are ego and attitude liabilities in investment analysis but they put the essential trust between fund managers and investing partners at risk. We achieve our investing goals by:
Buying businesses we understand, backed by tangible real assets, and managed by outstanding entrepreneurs
Our portfolio is concentrated in a handful of carefully selected business participations, in the form of equity or debt securities, that are backed by tangible real assets and managed by entrepreneurs with a long-term time horizon. We look for management teams that are focused on channeling the replaceable capital earned on the income statement into irreplaceable assets on the balance sheet. The value of our business participations is directly related to the scarcity and endurance of those balance sheet assets and the businesses’ independence, as measured by a lack of liability encumbrance.
Holding positions through market cycles, averaging down when prices trend lower
Real asset investing is often characterized by cyclicality. As such, our strategy is predicated on holding positions through market cycles to ensure that the maximum value is realized. Cyclicality in the price of our business participations means we are often presented with the opportunity to add to our positions at lower prices, even though the value of those positions has not changed.
Maintaining an active tail risk hedge that provides meaningful downside protection and substantial liquidity in the event of a market downturn
At Massif, we define risk as the permanent loss of capital and our primary focus is on avoiding a permeant loss of our investors capital. To protect capital, and maximize full cycle returns, we seek to minimize the impact of inevitable bear markets on the portfolio through deliberate asset selection and a tail risk hedging strategy that limits losses and produces liquidity for reinvestment into businesses at the more favorable price points that accompany market wide sell-offs.
The Massif Capital strategy provides a unique blend of income, capital appreciation and inflation protection. Importantly, our portfolio and investment philosophy is scalable and is designed to yield real returns over the long term. Our approach requires discipline, focus, and conviction. The discipline to only buy at a discount to intrinsic value, the focus to understand an industry and business deeply, and the conviction to hold an investment through market cycles, averaging down when the price trends lower.
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