How does Phoenician Capital combine value and growth investing?
We do not treat value and growth as opposites. Growth is part of what a business is worth, and value discipline sets the price we are willing to pay for it. We look for businesses that can grow profitably for many years, and we buy them only when the market price is well below our estimate of intrinsic value.
What do we look for in a business?
- A market price at a discount to our estimate of intrinsic value
- A founder or owner-operator who allocates capital well and whose interests match shareholders'
- Growth that is already profitable and generates cash
- Strong unit economics and a durable competitive advantage
- A long runway in a large addressable market
- Limited attention from analysts and large funds
Where do we invest?
We are generalists and we invest globally: the United States and Canada, Western and Eastern Europe, Australia, the Asia-Pacific region including India, and most of Africa. Our research starts from a universe of about 16,000 listed companies. We avoid regions where investors have limited legal recourse.
Does Phoenician Capital invest only in small companies?
No. We do not exclude companies by size. Before we built Phoenician Intelligence, our research platform, we focused on small and mid-cap companies. With it, our research covers companies of every size. In practice, much of the opportunity we find is still among companies that few analysts follow.
How is the portfolio built?
- About 20 to 25 holdings
- Long-only: no leverage, no short selling and no derivatives
- Position sizing is our main risk control
- Cash is held so that we can act when volatility creates attractive prices
- Holding periods are measured in years
Who invests with Phoenician Capital?
We manage capital for family offices, global institutions and high-net-worth individuals, alongside our own capital. The firm is registered with the U.S. Securities and Exchange Commission and is headquartered in New York City.