You can find a full slide deck for Infuse Partners here.
We invest in the fastest-growing, highest-quality businesses in the world with the shortest payback periods. Fast growth usually indicates rampant customer demand and strong operating leverage signals effective execution. The combination of these two leads to high rates of intrinsic value growth. When valuation assumptions are reasonable, this leads to supernormal compounding. We compound your capital by relentlessly focusing on these three variables -- growth, quality and valuation. We don't want just one of them, we want all three. If you want much more detail about our process, please refer to this post.
Our edge is that we ruthlessly focus on the best. We aren't just looking for companies that are doubling revenue every year, have the largest moat, or the lowest EV/FCF. We are looking for the handful of companies that rank in the top decile along the growth, quality, and valuation continuums. We truly have long-term investors with an extremely flexible mandate which allows us to concentrate on owning only the best. We don't need to compromise on any of our criteria. Our vision is a beautiful, virtuous cycle where our portfolio companies grow stronger every year, giving us time to find even stronger companies.
Our core values are an acronym that spells Infuse. That was intentional from the very beginning. We wanted our core values infused into the fund itself.
I - infinite
We are playing an infinite game. We firmly believe that business is one of the most powerful forces of good in society and because of that, investing can be a non-zero sum endeavor. We want partners with the same long-term mindset so we can support the brightest people who are creating the strongest companies.
N - no
In today's world of plentiful opportunities, saying "no" is a superpower. Saying no to partners who don't have the same long-term vision as us. Saying no to great companies that just aren't top-tier. Or saying no to good opportunities that take us away from doing the most important work for partners. Saying "no" is much easier when you know what you need to focus on. Focusing is the driving force behind this core value.
F - fellowship
In the industry, principals are held to a fiduciary duty which means that they don't act in a way that harms clients. We think that is far too low of a bar. Instead, we think that we should treat you like a good friend or a family member. If we wouldn't offer our strategy to them, why should we offer it to you?
U - uffgeva
This is an Amish word that means "the renunciation of one's rights in service of others". We think that idea is core to good business. The businesses that truly serve customers will grow and thrive and we want to model that in our own business as well as the ones we invest in.
S - soli del gloria
This means "glory to God". My faith inspires me to work diligently for the One who gives me purpose.
E - excelsior
Another Latin word that means "ever higher". This is a testament to constantly striving to improve. Without a growth mindset, we will stagnate and be unable to deliver world-class returns for the next several decades. We don't congratulate ourselves when we are doing well. There is always room for improvement.
Ryan Reeves is the founder of Infuse Asset Management and CIO of Infuse Partners LP. After working at the Motley Fool and a hedge fund in college, he started an investment research business called Investing City. That business currently has hundreds of subscribers and a 7-year after-tax track record of a 25% CAGR.
You can learn more about Ryan here.