Our approach
Marsa Capital invests primarily in equities listed in the United States, the deepest and most liquid market in the world. We take long positions in companies we believe are worth more than the market is paying, and short positions in those we believe are worth less.
Every position, on either side, begins with our own research.
Proprietary research
We do not outsource our thinking. Ideas are generated internally and tested through primary work: financial statements read in full, unit economics rebuilt from the ground up, and a clear view of what has to be true for a position to succeed.
The result is a small number of well understood positions rather than a long list of names known only from a screen.
Long and short
On the long side we look for durable businesses with pricing power, honest accounting and management that allocates capital well, bought at prices that leave room for error.
On the short side we look for the reverse: deteriorating economics, aggressive accounting, balance sheets that cannot carry the story, and valuations that assume none of it matters. Shorts are researched with the same rigour as longs and sized with respect for their asymmetry.
Concentration
Conviction, not an index, determines position size. We would rather own a few things we understand deeply than many things we understand slightly.
Discipline
Risk is managed at the level of each position and of the book as a whole: gross and net exposure, liquidity, and the relationship between what we own and what we are short. We are patient entering positions and unsentimental leaving them when the thesis is no longer intact.