For over a decade, Otsi Keta Capital has delivered superior risk adjusted returns through its private investment partnership, the Otsi Keta Focus Fund, LP. The partnership has outperformed benchmark indexes in the 1-year, 3-year, 5-year, 7-year, 10-year and from inception time horizons by focusing on investments in publicly traded, small-cap companies.
We are fortunate to have attracted a partner base that embraces our disciplined investment philosophy, built on the following principles:
- Understand the businesses behind the ticker symbols for success. Our competitive advantage is developing a deeper knowledge of the management team and the business than other investors.
- Focus on well-managed, profitable, underappreciated companies with low or no analyst coverage.
- Invest in companies trading below fair value, creating a margin of safety to reduce the risk of permanent capital loss, and sell when we believe the company has surpassed it fair value. We further reduce risk by not investing in turnarounds, companies with relatively high levels of debt or growth companies trading at extreme price to earnings ratios.
- Align with our partners – we have the majority of our investable assets invested shoulder-to-shoulder in the partnership. We also expect the management teams of the companies we own to be invested in their businesses.
- Concentrate on our best ideas. Typically, the top 15 positions represent 85% of the portfolio. We are not highly correlated with the broader indices.
- Move quickly when opportunities to buy great business are available – but, be patient in our ownership. There are not that many great businesses. Investors need to buy them when a margin of safety exists – replacing them should be strategic.
Since the inception of the partnership, our strategy and philosophy have not changed. From the start, we believed we would significantly outperform our benchmarks by consistently buying business with better returns on capital than the average and finding opportunities to deploy capital with a margin of safety. We’ve proven that to be the case.
The fact that our partners have supported our strategy through various market cycles has been a key component to our successfully delivering strong returns.
This performance data represents from inception through September 30, 2023, and does not guarantee future results. There is no guarantee that the circumstances leading to this performance will be replicated in the future. Investment return and principal value will fluctuate and principal investment may be worth less than its original cost when redeemed. Year-to-date and since inception total return are the compounded rate of change in value during a period of investment, including the value of shares acquired through reinvestment of all dividends and of all capital gain distributions for the period. These figures are based on an investment at the beginning of the period through the end of the period and reflect all applicable fees and expenses. These figures do not reflect taxation a shareholder would pay upon a distribution or redemption. Recent performance may be less than the figures shown.