Investment Philosophy
We Buy Mispriced Quality.
With Discipline as the Constant.
Our program focuses on public equity markets, applying a rigorous, bottom-up research process to identify companies with exceptional business fundamentals that the market has mispriced relative to their intrinsic worth.
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
— Warren Buffett
Our Approach
GARP: Growth at a Reasonable Price
Our program operates at the intersection of two distinct but complementary disciplines: growth investing and value investing. We do not subscribe dogmatically to either. We seek companies that are growing faster than the market perceives, but priced as if they are standing still.
This means we pursue businesses with scalable models, expanding competitive advantages, and strong free cash flow generation, but only when the market has mispriced those qualities due to short-termism, cyclical noise, or misunderstood fundamentals.
Our approach is bottom-up and conviction-driven. We build concentrated positions in ideas we understand deeply, and we hold them with patience. We do not chase themes. We do not invest in businesses we cannot explain.
Growth Investing
Rule of 40
We prioritise companies where Revenue Growth % + EBITDA Margin % exceeds 40, balancing expansion with fiscal discipline. We look for scalability, innovation, and businesses with the capacity for second-act optionality.
High operating leverage
Market disruption
Optionality
Value Investing
Intrinsic Value Focus
We apply multi-stage DCF models and historical multiples to determine what a business is worth independent of its current market price. We target companies with strong free cash flow yields, asset support, and a clear catalyst for revaluation.
Free cash flow yield
Asset support
Mean reversion potential
Programme Constraints
Discipline Enforced
by Design.
Position Limit
10%
No single security may exceed 10% of total portfolio value.
Sector Limit
30%
No single GICS sector may exceed 30% of the portfolio.
Cash Maximum
15%
Maximum cash position to ensure the portfolio remains fully invested for educational tracking purposes.
Asset Classes
100%
Long/short public equity as the primary asset class, with capacity to expand into fixed income.
Benchmark
MSCI World
Programme performance is tracked against the MSCI World index on an annual basis.
Short Positions
Pre-approved
Short positions permitted only at high conviction and subject to prior approval by the Investment Committee.
A stop-loss level is established for every position at the time of initiation and reviewed alongside the thesis. Stop-loss levels may be readjusted in the context of a documented dollar-cost averaging strategy, subject to Investment Committee review.
Risk Management
We Manage Risk
Before We Manage Returns.
Growth Risks
Valuation Sensitivity
High-multiple businesses are sensitive to changes in the discount rate. All growth proposals must include sensitivity analysis on the DCF discount rate.
Execution Risk
Growth is a forward-looking assumption. Every proposal must identify key performance indicators that, if missed, trigger an automatic thesis review.
Value Risks
The Value Trap
Cheap is not a thesis. A security trading at a discount to intrinsic value must also carry a credible catalyst for revaluation. Permanently deteriorating fundamentals disqualify a position.
Margin of Safety
All value entries should ideally trade at a minimum 20% discount to calculated intrinsic value. The margin of safety is non-negotiable.
Responsible Practice
We Do Not Invest
in Everything.
As an educational programme with a broader social mandate, Blueshift Capital maintains a formal exclusion list. We do not seek exposure to industries whose primary activities conflict with the values of the programme and the ESFS Educational Association.
These exclusions apply regardless of valuation or expected return. They are permanent and not subject to Investment Committee override.
Tobacco
Manufacture or distribution of tobacco products.
Alcohol
Primary commercial activities in alcohol production or distribution.
Gambling
Casinos, sports betting, and related gaming operations.
Adult Entertainment
Businesses with material revenues from adult content.
Cannabis
Cultivation, processing, or distribution of cannabis for commercial purposes.