Opportunistic value investing
Castellum Capital Management is a boutique investment manager serving high net worth individuals, family offices, and institutions. We provide only one investment strategy for our Clients, the Opportunistic Value Portfolio. By concentrating our time on one strategy, we are highly focused on return generation through our disciplined investment process.
Investment culture & Style
We believe in the semi-strong form of the EMH. The market is an efficient pricing mechanism for securities. However, there are pockets of inefficiency in the price discovery function of the market which can be exploited. In order to consistently generate alpha from these opportunities requires an opportunistic approach, concentrated portfolio, high degree of emotional discipline, and methodological investment process.
The Opportunistic Value Investment Strategy is an active style of investing which focuses on proprietary stock picking, hedging market and stock specific risk when appropriate, and adjusting portfolio risk exposure at market inflection points.
Investment Strategy
We aim to compound capital at a greater rate of return than the S&P 500 over the long-term by concentrating the Portfolio in a small number of deeply undervalued positions. We also aim to avoid, or profit if possible from, bear markets by adjusting risk exposures around market inflection points.
portfolio construction
The Opportunistic Value Portfolio generally maintains 10-20 positions weighted by expected return with a target holding period of 2-4 years. The Portfolio is built from the bottom up with target risk exposures guided by a 2-4 year forward looking macro economic and market outlook.
risk management
Our Strategy does not diversify away idiosyncratic risk or target low daily/monthly volatility. We do attempt to selectively hedge market and position level risk when possible with an equity derivative overlay. We also attempt to avoid the large price draw downs of bear markets by adjusting risk exposures at market inflection points.