Strategy

DIVYDE is a concentrated, long-biased investment management firm. Our defined entry parameters range from $100 million to $2.5 billion for initial purchases.

We aim to tactically invest capital in 6 to 10 advantaged, able-managed, and enduringly valuable businesses early in their growth cycles.

We are committed to identifying multi-bagger opportunities that deliver superior, risk-adjusted performance over the long term.

Our investment strategy places innovation and concentration above all else. Diversifying away risk also means diversifying away returns.

Our goal is to achieve factor-driven alpha for our portfolio by carefully selecting individual stocks that offer bold and unconventional long-term prospects.

We integrate macroeconomic foresight with in-depth knowledge of technological evolution and innovation. This approach allows us to define our 'directional arrows of progress,' setting a pace for ambition and measuring it against 15,000 small-cap companies worldwide.

We aim to identify opportunities ahead of the curve, anticipating trends before they become mainstream.

Sector Focus With An Emphasis On Long-Term Secular Themes:

Transformative Solutions

Applying advanced technology to traditional industries

B2B SaaS Platforms

Market Networks

Mobile Applications

Food & Agri-Tech

Frontier Technologies

AI & Deep Learning

Computer Vision

Augmented Reality (AR) & Virtual Reality (VR)

Drones & Robotics

Quantum Computing

Space Technology

Blockchain

InvestmentProcess:

Systematic Research Approach

Repeatability of Investment Edge

GlobalSourceof Ideas

At the core, we are marrying our top-down macro understanding to a bottoms-up knowledge of the evolution of technology and innovation, helping us to define our 'directional arrows of progress.' Understanding where we are headed sets an anticipated 'pace' that ambition can be measured against the +15,000 small-cap companies worldwide.

Qualifying Ideas 'Pipeline'

We systematically qualify ideas via our defined Underwriting Thresholds alongside the following: United management teams, Strong insider ownership (owner-operators), Excess capital and/or under-leveraged balance sheet, Pricing power, Opportunities for reinvestment, and Information dislocations.

Nominees

Incubating ideas we believe in, using market volatility as an opportunity to play offense. We measure the active subset against the absolute opportunity set rather than the relative opportunity, with size being a vital factor in the equation.

Investment Period

Strategically deploy capital with a minimum horizon of 3 to 5 years with active evaluation correlative to each company’s underlying durable advantages, alongside its objective delivery of measurable key performance indicators (adding exposure and executing new trades vs. reducing net exposure and position sizing).

Underwriting Thresholds

Durable Economic Moats

Businesses that are entrenched with their customers’ workflows and are challenging to displace —demonstrating stickiness in the form of high retention

Heavy focus on the convergence of physical processes to digital ones, exposed to large addressable markets

Sustainable growth with the ability to create or extend a moat in a big market; decoupling future-proofness from valuation measures

Secular Growth Beneficiaries

Drive the development of additionality; the direct effect of adding new solutions enables projects to be built where they otherwise wouldn’t exist by providing a compelling economic value proposition that changes the dynamic

Waning industry digitization and emerging sustainable solutions that have variegated intrinsic values uncorrelated to the broader markets, favoring proprietary data assets and ongoing access to unique information

Underappreciated Growth Catalysts

Expanding intrinsic value through constant improvement over long time horizons; proven acquisition playbook for acquiring other assets accretively

Modern architecture & distribution methods with agnostic connection channels

Occupy a seat at the economic table and, from that seat, enjoy higher organic growth, unusual reinvestment opportunities, or both

Dominant Digital-Native Businesses

Applications tailored to building customer intimacy and making products with system lock-in and other vertical-specific modules

Organic customer acquisition strategy: focus on microeconomic factors with specific and understandable impacts, giving organizations control over the entire customer experience and value chain (relative transfer pricing power)