OUR INVESTMENT APPROACH
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We are results and solutions focused investors. We take an entrepreneurial and pragmatic approach to investing at Foundational Capital. We seek to source under appreciated opportunities and work with like-minded partners, together with whom we can apply our strengths, join forces and responsibly create value.
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We build our multi-asset class investment model on a scientific approach, the "Yale Model", the US Endowment Model codified by the late David Swensen (CIO of Yale University's endowment) with disciplined risk management and independent asset manager selection based on asset class expertise and deep fundamental due diligence.
Risk Management
We believe in high static risk level afforded by a true long term outlook with no market timing.
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At Foundational Capital, true risk is defined as “aggregated market exposure” rather than “volatility” that is backward looking.
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Asset Allocation
We provide true multi-asset class diversification with illiquid allocation.
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To ensure proper diversification, we focus on the underlying market exposures (or “betas”) and avoid reliance on asset class labels. This requires the ability to look-through and understand a manager’s exposures.
Manager Selection
We handpick asset managers based on their perceived ability to outperform equivalent risk low cost passive instruments, and pursue a wide array of structured manager partnerships (including separately-managed accounts and co-investments) to optimise return on fees paid.