Mr. Prentice: It's a classical Greek word coined by Aristotle. The literal translation is "good spirit," but what it really says is that the path to true success can only come through integrity. We certainly believe that and that's why we have the name that we do. We are a small and micro-cap growth investment boutique focusing on the institutional market. We started our firm in August 2007 and currently manage just shy of $70 million.
TWST: What is your investment philosophy?
Mr. Prentice: We believe that new information or changes in information creates
opportunity. The opportunity is created because investors often don't properly
or efficiently analyze changes in information. They tend to suffer from two main
behavioral biases that we seek to exploit. First, in the face of changing
information, investors tend to be overly conservative. Second, they tend to
anchor their beliefs about a company to only the most recent past and use that
as a guide to the future. What we do every day is to look for the signs and
symptoms of change occurring at the company level, properly analyze that change,
and position our investments on the right side of that change. So it is that
time period that we exploit between when change happens and when the market
fully recognizes this change completely. Typically, this adjustment occurs only
after subsequent periods of outperformance as the market catches up to the
company's new growth profile.
Tickers included in this excerpt: BPSG, CNTY, VECO
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