Compounding Capital
We believe that equity investments provide the greatest return potential in the long-term.
About Us
VAM is a professional investment company that seeks to allocate capital in both public and private markets. VAM invests primarily equity, as it has done for the last 15 years, preferably in shares of companies and/or equity related instruments. In alignment with our preference to be considered business owners, rather than business creditors.
To do it correctly, we have identified some critical success factors, like; a long-term orientation, deep analytical skills that helps to identify strong businesses, their predictability and sustainability. An understanding of risk and tolerance to navigate through business and economic cycles, the recognition that management plays a key role in the evolution of this companies and our commitment to control our behavior through fundamentals and a grain of patience.
Business Development
VAM is set up more like a partnership, seeking to obtain the majority of our income from the return of our own capital, rather than from fees collected on our duties.
VAM earns income in two ways.
Fees
Fees charged to its advised vehicles. That would be in relation to the required capacity of its platform, but not to generate wealth to any of its managers.
Capital Gains
Capital Gains and some promotes gained by the excess return generated in their vehicles. As VAM plans to be an important investor in everything it does.
Philosophy that defines strategy
VAM will follow the same principles and investment philosophy while allocating capital on behalf of its partners.
Solid analytical and investment process, following a clear justification on the particular investment characteristics (bottoms up analysis)
- Superior Management (proven, young, talented, energetic, and honest)
- Circle of competence (industry, segment, markets & experience)
- Clear & Sustainable Competitive Advantage (unique)
- Strong Brand and Pricing Power (high operating margins)
- Conservative Capital Structure (low debt)
- Fairly Priced (discount to intrinsic value, margin of safety)
Strong alignment between investment managers and our clients, who should be viewed as partners.
Always acting with honesty, integrity, and transparency. Every investment has a substantial commitment from our own capital, always.
Understanding and consideration of risk
Ample consideration of risk, we define risk as the permanent loss of capital, not volatility. We have a strong consideration of downside risk; we have a willingness to hold cash
Long-term Investment Horizon
Our main competitive advantage should be our long-term investment horizon. Therefore, we place the company’s interest first; we don’t interrupt the business cycle nor the evolution of the investment. We are true believers in the magic of compounding.