Upslope's core investment approach is a concentrated, long/short equity strategy, focused on mid-cap businesses. Upslope also manages a long-only version of the strategy.
Upslope is a Colorado registered investment adviser and manages client capital through a separately managed account (SMA) format.
Upslope's strategy is "alternative" in a few ways. First, the strategy involves significant short equity exposure. Second, Upslope's long portfolio is far more concentrated than typical long-only equity strategies. And finally, while we admire and agree with much of the traditional value investing approach, our portfolio looks anything but a traditional "value" portfolio.
Upslope's approach to "value" investing is fundamentals-focused, disciplined, and price-sensitive. But, we aim to be pragmatic - rather than academic - in making investment decisions. We are not wedded to "low-multiple" stocks and generally seek businesses with the highest level of long-term durability for the lowest price.
Our approach results in a concentrated portfolio of approximately 10 long and 10-15 short positions (with individual long positions generally being significantly larger than shorts). This concentration is a necessary outcome of a disciplined investment process. For us, it is the only way to construct a differentiated and uncorrelated portfolio.
Trust numbers over common sense
Feel smart from complexity
Enjoy crowds (understatement)
Own deep value or unprofitable growth
Short mostly on valuation
Touch specialist stocks (e.g. biotech)
Dilute best ideas
Predictable, long-term growth
Strong balance sheets
Flawed financial models
Bad deals / M&A
Flows gone wild