Mott Capital Management is a Thematic Growth investor using themes and trends in society to find exciting growth stories. Once we find a theme we want to capitalize on we begin searching for products that interact with the end user. From there we begin the company search process. Our investment strategy is long-term because that is our edge. We understand and recognize when events are critical and when they are not. We also believe investing long term is a way to neutralize market volatility.
The Mott Capital approach starts out with the structure of a client’s account. We chose managed accounts as opposed to a fund because we feel that a managed account gives the owner transparency. The client can check their account and see their balance. They can actually see the equities they own and the fees they are being charged. Additionally, there is no lock up period, the client is free to come and go as they please. We only invest in equities, we are not financial planners. We specialize in picking equities, not planning for your retirement. This allows us to focus on seeking to generate the best returns for our clients.We are not traders or market timers, we are investors. We buy equities with the intent to hold them.We do not concern ourselves with daily, weekly or even monthly market movements. Instead we concern ourselves with our performance over quarters and years. We do not use margin or leverage of any kind. We are strictly cash investors. This allows us to make investment decisions and sell equities because we want to, not because the margin clerk is telling us to. We never short, or use options.We have a keep it simple approach to investing. We are not running quantitative models to find our next investment. We think about trends in society and try to come up with ideas that match those trends.The three things that make investing simple is growth, quality and patience.
Mott Capital uses top down analysis. We come up with a theme we would like to focus on and drill down to companies from there. We look at variety of things, from fundamentals, to technical. Most importantly, however, the company needs to have a good growth story. We NEVER use models of any kinds. They are useless in our opinion
Mott Capital utilizes an ALL-cap all sector approach. We only invest in US equities or ADRs. Generally, as long as cash is not an issue all securities start off with a 5% weighting, and we leave 5% in cash. We do not believe in rebalancing. We have very low turnover, and try to keep approximately 19 names in the portfolio.
Mott Capital will NEVER rebalance, We believe in holding solid companies with good growth prospects. If the story of the company changes, we change, meaning we sell the stock. It is that simple.