Most investment managers don’t beat the stock market. In order to add value, we do something very different. We identify innovative companies that we think will be the winners of tomorrow, but that appear cheap today. Our holdings trade on major exchanges and have market caps above $1B. As we are very selective in what we hold, our portfolios typically only hold 7-10 companies. Since inception in May 2018, our clients’ portfolios have beaten the market by more than 50%, helping them achieve their financial goals and giving them increased flexibility and opportunity. All of our Founder’s liquid capital is invested alongside outside investors.
While the FCA will not allow us to guarantee a return, we can guarantee that we will not make a single penny until you have beaten the index. We will answer any questions you have in plain English. We will provide you with your own account, where you directly own all of the assets, held by an independent custodian to ensure that your assets are safe and secure. (Assumes performance fee only contract.)
our offering is different
To align incentives with our investor partners, all of our Founder’s liquid capital is invested in the strategy, we prefer to earn a fee only if we add value by beating the market, and we pay all trading and research costs ourselves.
To treat clients as partners, each client owns their own separately managed account with complete transparency into what is held, and clients do not face withdrawal restrictions or penalties.
To generate better long-term returns, we only invest in innovative companies with large untapped markets.
To make better decisions, we make fewer decisions and typically invest in 7-10 companies at a time.
To align incentives in investments, we only invest when a member of management is a large shareholder in the company.
To lower risk, we do not use leverage and only use derivatives to reduce market exposure.
To lower tax bills, we invest long-term, trade less frequently, and consider taxation in trade execution.
To maintain performance, we focus on one long strategy and limit capacity.
Our Portfolio is Different
Our performance is different
unorthodox differentiation is our key to success
We realise that to be successful, we must be unorthodox. We generate all our insights ourselves and ignore the noise of the markets, including sell-side analysts, prognosticators, and the business press. Our ideas are often overlooked by the market because we take a long-term view, focusing on long-term business models and economic value creation.
We believe in doing one thing, and doing it well - investing in innovative companies That Appear Cheap today
what is a blue ocean?
Companies create blue oceans through strong competitive advantages and large untapped market opportunities.
Blue Ocean is wholly-owned by Ted Holmes. Ted founded the firm following a 20+ year career with UBS Asset Management. Throughout his career at UBS, he successfully applied the value philosophy to technology and growth investing. He was one of the best performing analysts and was repeatedly promoted. Ted finished his career as European Head of Equities with responsibility for over 50 people and tens of billions of assets under management. He has a Chicago MBA, is a CFA Charterholder, and is qualified as a CPA (inactive). Ted also serves on the Board of Directors for the City of London Investment Trust, which was founded in 1891 and manages over £1.6B in equities, and on the Investment Committee for the King's Fund, a health advocacy non-profit established by Royal Charter in 1897.
We don’t make a penny until our investors beat the Market.
(For clients who select the performance fee only).
our core beliefs
A partnership approach is core to the firm. Communication to clients is open and holdings are transparent. Clients only pay pre-agreed management and performance fees and do not pay trading or research costs. There are no fees or penalties for client withdrawals. All client funds are held by a custodian in the name of the client.
The manager of the firm invests significantly into the strategy alongside clients. The management of the companies we invest in have significant personal equity in their businesses, thereby aligning the long-term interests of all partners to the success of the companies in which we are all invested.
Culture is one of the largest competitive advantages a company can possess. Strong culture incorporates integrity, good levels of disclosure, conservative accounting, long-term strategic thinking and effective allocation of capital.
We invest in management who place strong emphasis on long-term strategy. The best managers are good capital allocators and make long-term strategic investments, often at the expense of near term earnings.
Independent and unorthodox thought process. All of our work is proprietary, bottom up, with a long-term intrinsic value focus. We maintain our independence of thought and action by avoiding sell side research and opinion. This helps us to avoid the mistakes and the short-term focus of the herd. We don’t watch the markets and stock prices. We don’t try to predict the unpredictable such as political, regulatory, or economic outcomes.
With our focus on long-term intrinsic value, we take advantage of short term share price overreactions that don’t impact the value of the business, but do present great opportunities for investment. Long-term investing works because the market focuses on the short-term, making insight about the long-term more profitable.
The firm is unconstrained by indices. The attention to indices and market returns does not serve most investors well as we believe that each investment in the portfolio should be made on an absolute basis. We invest only when a company is fundamentally undervalued.
The firm has longer holding periods and trades much less frequently than typical firms. We believe that lower turnover equates to higher quality decisions, lower transactions costs, better focus on long-term issues, and more efficient taxation.