Saguaro Capital Management

“Paul's actually on our board now because of that.”

“Our technical limits are five to 20 names. Realistically, each one of our portfolios will probably be more seven to 14. Today, we've got 12 in all three of our portfolios.”

“So definitely my first window, and it's funny that we actually write cover calls now.”

“One of the things that makes us different from other people I know in the industry is we think in terms of ranges of values around businesses versus point estimates of value.”

“What we've tried to do is say, hey, if we've got one of these really rare, truly great businesses, it's okay if it kind of gets to our midpoint of value, our fair value estimate. Unless we have some other opportunity that's just so much more compelling, let's …”

“We were writing put options on Meta slash Facebook in November, and then the 90 dollars or something, and then we turned around and we were writing call options once it got past 200 in March. And so we were able to kind of see the full investment cycle on the …”

“And so we have a different structure. We want to be performance fee based. We want to make sure that we're capacity constrained and Over time, as we grow, we actually want to drive our management fee down.”

“We kind of went back and historically looked at things. I think it was five percent of the time acquisition takeout offers were above the high end of our range.”

“If we have a full list of a hundred names, we only need one or two to have that type of a discount each year for us to have a really successful investment philosophy and process.”

“And on the AI side, at this point, we've got about 20 names that we've actually gotten onto the SCM 100 list, taking them through our process.”

“I am guessing we're going to have less than 20% turnover. So I don't know exactly, but I'm very hopeful it's longer than five years.”

“We're very hopeful in the long run to be able to look back and say, hey, we're more than covering our management fee with this options writing. Obviously not going to promise that and we'll see what happens, but that's helpful on entering positions.”

“So we capture all of our internally generated data. So we record and transcribe our research meetings. We try to record and transcribe as many calls as we can. Every research report that we're doing, we're trying to do the next step of making those reports mac…”

“If an idea is new to us, i.e. We haven't followed it longer than 12 months, we're going to limit our position size to five percent.”