At Benevolus Capital, we believe that investing is most successful when it is disciplined, patient, and rooted in a deep understanding of value. Our practice focuses on identifying overlooked opportunities in microcap equities and special situations.
Our approach is inspired by the timeless principles of Benjamin Graham —the idea that value is not defined by price, and that market volatility is not the same as risk. We seek to own businesses for less than their intrinsic worth, with a significant margin of safety, and to avoid permanent capital loss.
Our Core Principles
1. Preservation of Capital Comes First
We will not risk permanent loss for the sake of chasing returns. That means avoiding speculation, steering clear of complex businesses we don’t fully understand, and focusing only on situations where we can clearly see both the risks and the rewards.
2. Focus Where We Have an Edge
We specialize in areas of the market that larger investors often overlook—public companies with market capitalizations under $500 million, underfollowed special situations, and businesses facing temporary challenges. These less-crowded spaces offer greater potential for mispricing and asymmetric opportunities.
3. Rule-of-Law Markets Only
We invest only in markets where the rule of law prevails, foreign investors are welcome, and capital is free to move. This commitment to jurisdictional quality helps reduce geopolitical and structural risks.
4. Intrinsic Value Above All
We value securities based on the underlying business, not on short-term market movements. Whether it’s a going concern valued for earnings power, a liquidation scenario, or a business undergoing strategic change, we let the fundamentals dictate the thesis.
5. Intelligent Use of Concentration
We size positions based on opportunity cost and expected yield. When one idea stands far above the rest in risk-adjusted return, we are willing to concentrate capital.
6. Independent and Contrarian Thinking
We are often drawn to situations the market has labeled “unattractive”—industries in decline, misunderstood companies, or stocks sold off after bad news. As Michael Burry described, these “ick” investments can yield exceptional returns when properly analyzed and purchased at the right price.
Our Goal
Our mission is to deliver attractive, uncorrelated returns over the long term by applying a consistent, rational, and risk-aware investment strategy. We are not interested in chasing trends or speculating on what might be fashionable in the market today. Instead, we focus on building wealth steadily and responsibly, one well-researched opportunity at a time.
