Why All Cap?

Triad’s primary investment strategy is known as an all-cap equity strategy. In more straightforward language, it means we are able to invest in small, mid-size and large companies.

And we do. But why?

It gives us a wider group of companies to choose from. We believe that good companies come in all sizes. As we manage concentrated portfolios of our best ideas, it makes sense to draw those ideas from as wide a pool as possible. Given that we require an estimated 15% rate of return from each new investment in the portfolios, not too many companies are investable at any one point in time.

Something else, that we’ve seen happen in our careers at larger investment organizations plays into our appreciation of all cap investing. Mega firms with hordes of analysts can develop the institutional imperative to keep everyone happy by buying something from each sector since they have people working there. It’s human nature to want to see your ideas in the portfolio.

But, in our view, the right thing to do for the client is to avoid areas when our investment criteria aren’t being met. Zero utility company investments? That’s OK with us if there are no ideas there (and no upset utility analyst to avoid eye contact with in the hallway). Since we are all-cap investors, we can do whatever makes the most investment sense.


The opinions expressed in Triad’s blog are those of Triad Investment Management, LLC and are subject to change without notice. Past performance is not a guarantee or indicator of future results. You should not consider the information in this blog a recommendation to buy or sell any particular security. These securities may not be in your account by the time you receive this report, or may have been repurchased for your account. You should not assume that any of the securities discussed in this report are or will be profitable, or that recommendations we make in the future will be profitable or equal the performance of the securities listed in this report. Triad Investment Management, LLC is a SEC-registered investment adviser. Consider the investment objectives, risks, and expenses before investing.