M Square is the steward of capital for large families, founded on an uncompromising approach to investing, with the sole goal of compounding capital for the long term. We believe that the best way to compound capital overtime is to focus on the portfolio as a whole and the quality of returns generated.
Investment managers play an instrumental role in our investment approach. We count on the focus and expertise of a carefully selected few to identify the most attractive investments available in their individual area of expertise. We believe it is very hard to consistently generate superior risk-adjusted returns, which demands focus and specialization, and only a small number of truly talented and aligned investors can do it over long periods of time.
We invest for the long term. Once we make an investment, our aim is to remain invested for decades to come – compounding significantly impacts performance over long periods of time.
We are ready to partner with a portfolio manager early in their life. The ambition, grit and dedication at the start of a manager’s journey can positively impact returns and provide many useful insights into their minds and values.
Three pillars underpin our investment philosophy: alignment of interests, proven talent, and meaningful relationship.
1. Alignment
We look for managers who seek to establish long-term partnerships, have significant personal investments in their fund, exhibit relentless focus on performance and present a business mentality compatible with our own. M Square has a strong preference for firms that only manage one strategy, as opposed to fund platforms. We believe the world’s most talented investors are rarely found inside big structures, and most have a preference for owning their investment firm, have greater alignment with the results they produce (“eat their own cooking”) and have greater control over their destiny. The degree of alignment of a manager and their team can also be seen through their passion when discussing an investment thesis, their obsession with the firm’s and their reputation, their discomfort during a cycle of poor performance, their care and fairness in building their investor base, as well as various other factors relating to fund size and fee structures.
2. Talent
For us, talent means people who develop real insights. Exceptional investors who are able not only to analyze data but also to make decisions with excellent judgement. We look for managers with a sound investment philosophy and rigorous investment processes, who deploy deep research with truly long-term horizons, and who have invested through different economic cycles. Talent should also be present across the firm, not only should the portfolio manager be differentiated, but also the people they attract to their team, from investor relations and analysts, to operational staff. Curiosity, consistency and constant learning are key qualities of managers who we have found to be extremely talented.
3. Relationship
We believe that a meaningful relationship is fundamental to the investment process. We evaluate the transparency and genuineness of interactions. The depth of disclosure through documents and investors’ letters is also valued. We expect to be treated in the same way we treat our clients – with transparency, open and unrestricted access to the manager themselves. We do not value quantity of interactions but timely and high-quality ones. We prepare for our interactions and make sure that we use the time of our managers wisely.
About us
We are investors – passionate and dedicated students continually seeking to find better answers.
We honor the trust given by our investors by working hard and doing the right thing. We are accountable for our work and results, constantly looking to evolve to do more and better tomorrow. The responsibility of managing the wealth of others is huge and we treat it with the utmost respect and care.
Caring is how we treat our investors’ capital as if it were our own. It is why it makes sense for us to spend so many nights on planes and weeks away from our families to invest in the best managers in the world, and not in the ones who come knocking on our door. Caring is believing that money is not fungible, that every dollar is not equal. That having great people as our clients motivates us to go the extra mile. Caring is being able to say that we like all our clients and our investment managers.
Caring is the belief that over time great work leads to great results.
We consider our journey special, and we feel privileged to have been chosen by the right partners.
