A long-only equity capital appreciation approach.
Highly concentrated positions and extended holding periods.
Security selection based on Power Dynamics,
a proprietary model of fundamental value.
Long-term fundamental value, even in highly dynamic
and complex environments.
Strategy Capital LLC is an asset manager that selects securities for investment based on Power Dynamics, a proprietary model of fundamental value, developed by Hamilton Helmer, a Yale Economics Ph.D. Dr. Helmer developed Power Dynamics over decades of strategy consulting at Bain & Company and his own firm, Helmer & Associates.
POWER DYNAMICS characterizes in considerable detail the necessary and sufficient conditions for each of the seven types of power that drive free cash flow and hence underlie all business value creation. Such an exhaustive analysis enables one to determine long-term fundamental value, even in highly dynamic and complex environments.
Not only is this analysis useful to the firms themselves, but also to investors seeking above average returns. In a select group of firms, usually in rapidly changing business environments, identifiable power has not yet asserted itself in financial performance and is not fully reflected in the stock price. Over time this power results in unexpected financial upside, creating the opportunity for significant price appreciation. Consequently there is a potential for realizing alpha by focusing ex ante on just such firms that jointly display power and “opacity.”