Strategy & Philosophy

Alder Capital is a value-oriented long/short investment manager. We pursue a rigorous and disciplined investment methodology that combines top-down macro-economic analysis with a diligent, fundamental bottoms-up approach to individual company analysis. Our process first establishes a macro view of economic, geo-political, and equity market valuation conditions, and then provides the framework for in-depth fundamental analysis of individual stocks we believe offer large return potential in the forecast economic environment. 

Our focus is primarily on small and mid cap companies that suffer from inefficient pricing, a lack of Wall Street coverage and often have temporary, but fixable, operating problems. We typically maintain a portfolio of 25 to 50 companies and, on occasion, we employ 'tilt' tactics by taking positions in groups of stocks with similar fundamental and market characteristics to capture a thematic investment objective.

We eschew short-term trading tactics in favor of longer-term (1-5 year) equity positions that offer return potential far in excess of market benchmarks. We accept periodic short-term volatility in exchange for the much more desirable goals of large excess returns, low portfolio turnover and tax efficiency.