Principles
Creemore Capital Management
Markets change. Human nature does not. Creemore's intended process is grounded in principles designed to remain useful across cycles, asset classes and changing conditions.
A thesis can be intelligent, well researched and ultimately irrelevant to investment results. Profit and loss are determined by the prices at which capital is committed and withdrawn. Price is not infallible. It is final.
The first obligation is not to maximize upside. It is to avoid losses from which capital cannot recover. Every investment begins with the question: what happens if we are wrong?
Confidence is not conviction. Conviction is the result of research, testing, market confirmation and continued reassessment. It should increase only when the evidence improves.
A security does not have to return to fair value. A good business does not have to produce a good investment. A correct thesis does not guarantee correct timing. The investor must adapt to reality rather than demand that reality adapt to the thesis.
The number of positions in a portfolio is not evidence of diversification of thought. Creemore prefers a small number of deeply understood opportunities to a large collection of marginal ideas.
There are periods when patience is more valuable than exposure. The firm is not required to lower its standards merely because capital is available.
The intended mandate allows long positions, short positions, liquid futures or cash. The firm will have no obligation to preserve yesterday's opinion when conditions change.
Risk becomes dangerous when discipline is postponed. The willingness to accept a manageable loss protects the firm from the need to survive an unmanageable one.
Research can be informed by others. Judgment cannot be delegated. The manager is responsible for the decision, the risk and the result.
Long-term results are shaped not only by analytical ability but by temperament. Patience, courage, humility and restraint are investment advantages when practiced consistently.