Define your core competency and investment discipline.
Understand the debate
There are two sides of every trade. It is imperative to understand the motivations of each to prove or disprove a prevailing thesis.
Companies that consistently produce positive outcomes for society are often rewarding investment opportunities.
No investor is right every time. When the evidence mounts against you, move on; and when the odds increasingly stack in your favor, show conviction.
Define the catalyst
Cheap can remain cheap, and expensive can remain expensive – define the catalyst for change.
Follow the second derivative
Changes in rates of growth and margin trends are powerful leading indicators for changes in stock prices.
Cultivate a thesis, make it available, and revisit it often.
Appreciate the accounting
Accounting intricacies offer insights into business performance.
The equity markets offer thousands of investment alternatives. Patient investors with a disciplined investment process can focus on the highest conviction areas of interest.
Expanding our knowledge base and broadening our perspectives as capital markets evolve is critical to successfully investing over the long-term.
Be willing to own the whole company, rather than just a small piece of it.
Know how you would react if a holding misses a quarter and the stock sells off materially. Be prepared to maneuver in any situation.
Follow the financials, first. Management teams tend to be masters of optimism. Their commentary is highly relevant, but only in the context of financial realities.
The qualities that attract long shareholders to particular companies don’t change quickly. Be prepared to prove that those qualities are fleeting.
Risk management is key. You must be flexible enough to understand when your thesis is incorrect, and nimble enough to mitigate loss.
If you can’t be proven wrong, you might never cover. All shorts should have a catalyst with a reasonably defined duration to verify the thesis.
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180 Canal Street, Suite 600
Boston, MA 02114
An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks: Equity Securities Risk, Short Selling Risk, Value Risk, Sector Risk, ESG Investment Strategy Risk, Small and Mid-Cap Securities Risk, Illiquid investments Risk, ADR Risk, Large Capitalization Risk, COVID-19 Risk, Risk of Investing in the U.S., Preferred Securities risk, Quantitative Model Risk, Authorized Participant Risk, ETF Structure Risks, Early Close/Trading Halt Risk, Asset Class Risk, Cyber Security Risk, Management Risk, Market Risk, New Advisor Risk, New Fund Risk, and Non-Diversification Risk. While the shares of the Fund are tradable on secondary markets, they may not trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risks, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. More information about these risks can be found in the Fund’s prospectus.
An investor should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at www.changebridgecapital.com or by calling Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing. Current and future holdings are subject to change and risk.
Changebridge Capital, LLC is distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, North Carolina 27609. There is no affiliation between Changebridge Capital, LLC, including their principals, and Capital Investment Group, Inc.