The Fortitudine Vincimus Capital Endurance Fund is a flexible investment vehicle or hedge fund. It employs a classical equity long short strategy, by and large confined to investing in instruments listed on public regulated exchanges. Despite the equity long short bias the fund is capable of investing in other listed assets which may offer equity like returns (on a risk adjusted basis) such as fixed interest instruments, convertible instruments and derivatives. The fund uses leverage to amplify return outcomes and has a gross exposure limit of 200%. This translates into being 150% long and 50% short when opportunities abound. Initial individual instrument exposure is limited to 5% of capital for long positions and 2.5% for short positions. The fund operates with a high degree of concentration.
We generate excess returns by exploiting the enduring inefficiency of capital markets. The returns generated are in excess of what one could alternatively achieve through exposing capital to a greater probability of permanent loss.
The cornerstone of market inefficiency is the irrationality of market participants (human beings) who are prone to truncate time horizons and overestimate their ability to know with certainty something about the future.
We profit from this inefficiency by acknowledging our own fallibility and therefore design and practice processes which emphasise elongated time horizons, the mean reversion of perceptions, and the inherent uncertainty of outcomes.
FVC aims to compound capital at 10% per annum in USD (over periods greater than five years) on a net of all fees and costs basis.