Capital Markets are Information Markets
New ways to source or construct information create alpha.
The information landscape is shifting rapidly, but few funds build their own software tools. The median number of software engineers at a fundamental investment fund is 0. Most fund managers rely on the same third-party products (especially if we exclude earnings-release traders). Yet every fundamental investor suffers from filter failure – i.e. they could benefit from better ways to filter information and generate ideas. A window has opened for fundamental investors who can thrive in this new environment.
Lampa Capital was founded upon the recognition of this opportunity.
Our fund’s premise is that this generation’s top fundamental micro fund will (1) build their own research toolset and (2) model the impact of investor capital flows and the macro credit cycle at the individual stock level. This fund will supplement rigorous fundamental analysis with constantly improving software and will face reduced drawdowns due to their capital flow and macro awareness. We aim to be this fund.
What We Want for Our Clients and for Lampa
For our clients, we want to achieve a long-term performance record meaningfully superior to the major indexes and to be good partners.
For ourselves, we want to be exceptional. We’re passionate about the game, we’re in it for the long term, and we intend to constantly improve our playbooks. That starts with a first-class team with complementary skillsets, and we aspire to be the most fun and interesting place any of us has ever worked. Diligencing cash flows and capital flows + focusing on micro while staying macro aware + a lot of software augmentation is, as we see it, a winning formula.
As you can probably tell, we love investing, and we strive to be great investors over the long run.