01.
Lapin Capital is an Investment Club, which, through value investing, seeks a concentrated portfolio that is uncorrelated with the stock market
(i) diligent analysis; (ii) proximity to the companies we invest in; (iii) long-term horizon
02.
In 2019, Julio Coelho created Lapin with the aim of seeking opportunities in poorly priced companies on the stock exchange
These opportunities arise due to the fact that most investment funds do not monitor or do not have in-depth knowledge of companies with low liquidity or low market value.
Seeking to invest in these opportunities, we created a vehicle with a contrarian strategy to find investment opportunities where large funds are not looking
Thus, the club was created, covering a universe unlike that which large funds and investors usually cover.
Special sits:
We evaluate spin-offs, companies with hidden assets, in addition to arbitration of mergers and corporate events (Merger Arbitrage), and arbitration between preferred and ordinary and holding company vs controlled company
Companies in the process of changing their capital allocation:
Investment opportunities in companies that are divesting business areas or changing the capital allocation decision to free up cash to be returned to the shareholder (through reducing working capital or adding leverage)
Compounders with potential for long-term accumulated returns:
buy at a discount companies that can deliver high returns on invested capital over long periods of investment
03.
Investment process
Through a diligent investment process, Lapin Capital seeks asymmetric investment opportunities
(i) Coverage universe
We closely monitor all companies within our coverage universe, including mainly small caps and special sits companies of all sizes
(ii) Selection of best opportunities
Within our coverage universe, we define the best investment opportunities, basing our analysis on asset quality, valuation and capital return opportunities for shareholders
(iii) Deep dive in the company
Within the selected opportunities, we carry out an in-depth analysis of the companies, including sector analysis and company financial modeling
(iv) Proximity to the company
After carrying out an in-depth analysis of the company, we approached the company's management to understand how they intend to direct the company into the future
Portfolio construction
- Company is included in short-list of companies that qualify for investment
- Monitoring the Lapin team and starting a “secondary” position
- Deep dive in the company and follow-up
- Companies that qualify as the best investment opportunities, with asymmetric opportunities for results and predictability of outcomes become core positions
04.
Team Lapin
Julio Coelho, CFA
Fund manager with prior experience in Investment Banking and fund management
Julio has a career history in São Paulo and London in resource management and has had experience in DCM, M&A and foreign exchange & derivatives at houses such as XP Investimentos and Banco Brasil Plural.
- Academic experience: Bachelor’s degree in science and technology from Federal do ABC, has CGA, CGE certifications from Ambima and CFA from CFA Institute, and is also a registered manager with the CVM.
- Experience in DCM and M&A Boutiques: was part of a team that carried out fund-raising , acquisitions, project finance and debt raising projects for medium-sized companies.
- Experience in Fund Management: since 2019 he has been manager and founder of Lapin Capital. Additionally, he is responsible for the Lending Desk at Wincent, one of the largest HFT currency and crypto arbitrage and market-making funds.
Before that, he worked at the exchange and derivatives desk at Banco Brasil Plural.
Tomas Ventura
Entrepreneur with experience in Private Equity and turnaround
Tomas has a background as an entrepreneur and investor and had experience on the sell- side at an M&A boutique that he co-founded.
- Academic experience: Graduated in economics from FAAP, with a master’s degree in finance from Harvard University and an MBA from the University of Michigan
- Entrepreneurship and M&A: throughout his career he participated in or led transactions in the most different sectors, from the renewable energy sector, technology, mobility, logistics and sanitation, with a strong focus on B2B businesses, including for 3 publicly traded companies
- Experience in Management: with two experiences as interim CFO in turnarounds in different sectors, most recently he led the raising of R$50mm in investments and worked for 2 years as CFO of Reaqt Water Technologies, a water and effluent treatment company, and is currently Interim CEO of Refera Tecnologia, technology platform for the real estate sector
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Robust and uncorrelated performance, with upside capture above the index, and negative downside capture. That is, on average, when Ibovespa rose, Lapin rose more, and when Ibovespa fell, Lapin rose!
Performance
Robust annualized return of 30.66% pa over the last 5 years, reaching a total return of 238.09%.
Robust performance exceeding our objective of 20% per year.
Capture indices showing that on average the portfolio rises a little more when the Ibovespa rises and rises a lot when the Ibovespa falls.
Accumulated Return | Annualized Return | Sharpe Ratio | Sortino Index | Upside Capture | Downside Capture | |
Lapin | 238,09% | 30,66% | 1,147 | 1,9809 | 132% | -806% |
Ibovespa | 25,17% | 5,05% | -0,1058 | -0,1575 | – | – |
Lapin | Ibovespa | |
Accumulated Return | 238,09% | 25,17% |
Annualized Return | 30,66% | 5,05% |
Sharpe Ratio | 1,147 | -0,1058 |
Sortino Index | 1,9809 | -0,1575 |
Upside Capture | 132% | – |
Downside Capture | -806% | – |