Our Investment Approach

LPG is a deep value investor, focused on capital appreciation.

Investments are based on a rigorous bottom-up evaluation of the company, industry, financial, stakeholder and return variables associated with each opportunity. This is supported by an Artificial
Intelligence based platform used to filter through the investment universe and focus on the most attractive opportunities that fit our investment criteria.

We concentrate our capital in our best ideas that we expect to provide significant returns to our investors over an 18 to 24 month time horizon. Position count typically ranges between 5 and 10 names but can be more or less depending on the results of our analysis.

Our positioning is driven by an obsession with valuation, using nine different metrics to evaluate individual opportunities.  As an opportunity becomes more attractive across the various metrics, position size increases.  While this leads to heightened short-term volatility, the longer-term return expectations justify the tradeoff.  When market valuation metrics dictate or when there are an insufficient number of attractive investments, we will carry a large cash position in our mandates.

Investment candidates are usually out of favor with the market, but are strong cash flow generating companies with a number of catalysts that will crystalize valuation discounts.

When we find attractive bargains, we invest in them.  We do not use leverage in our investment vehicles and will only short when the opportunity is viewed as a unique alpha generating opportunity.