Investment Services
Appalaches Capital offers a concentrated, long-only, actively managed investment strategy via Separately Managed Accounts.
Appalaches Core LO
Appalaches Core LO is a long-only strategy that seeks to generate superior risk-adjusted returns over multi-year periods and market cycles. The Firm first uses contextual factors to identify a subset of securities that may exhibit a higher likelihood of mispricing. Securities are then selected based on fundamental analysis with a particular focus on capital allocation, competitive advantages, growth opportunities, and valuation. The Firm seeks to minimize downside risk with a sufficient margin of safety in its investments.
This is a focused strategy that seeks to hold between 12 to 20 long positions. A substantial portion of client assets may be held in its top 10 holdings. The strategy expects to hold positions for multiple years, although, some may have longer or shorter holding periods dependent on the situation at hand. While the Firm does not seek to time the market, clients may hold significant cash if no attractive opportunities are readily available.
Managed Accounts
Our investment management services are currently available solely as managed accounts. This provides full transparency and higher liquidity for our clients. We do not take custody of client funds, clients have full transparency of their holdings, and clients are able to withdraw with short notice if they deem necessary. Our current account minimum for new clients is $100,000.
Our investment strategy naturally has a long duration, and thus requires capital with a similar commitment. In the best interest of the Firm and its clients, we can only accept new clients with a long-term horizon and who believe in our process.
Our clients receive quarterly communications with updates on the portfolio’s performance and any changes made to its holdings. We additionally share these with the public.