Alternative Value Investing

ROMC’s goal is to generate positive returns on investor capital, principally through ownership in common equity investments. We believe that a good asset generates a high economic return on its capital. A good investment results from acquiring a good asset at a price that produces an attractive economic return on investor capital. What matters to an investor is “the Return On My Capital” (ROMC). We encourage owners to focus on economic results, believing that attractive economic returns lead to positive market returns that help investors maintain their purchasing power. Given the headwinds of long term inflation and taxes, maintaining purchasing power is easier said than done. As the great fund manager John Templeton advocated: “For all long term investors, there is only one objective: maximum total real return after taxes.” We tend to hold only a handful of securities, resulting in a concentrated portfolio. The level of investment in an asset is commensurate with the price paid in relation to intrinsic value. This provides a margin of safety and mitigates risk. Unlike other managers, we do not define risk as volatility but rather as the permanent loss of capital and a long term loss of purchasing power. We see ourselves as owners - not speculators. We are patient with a focus on our long term objective: To create generational wealth. We conduct research internally. Our business analysis and valuation work focuses on cash flows over reported earnings. Our view of intrinsic value can change over time as our understanding of a company's long term prospects change, not because of news headlines or market fluctuations. We believe that to be successful we must be different and our fee arrangements are unique in the industry. They create optimal alignment with our investors. At ROMC, investors come first. We understand our responsibilities and take our work seriously, even if we don’t always take ourselves seriously.