 |
|
|
Information for the former VCM Limited Partners
|
Partial content of this website has been preserved in the state it was when VCM was accepting limited partners to its hedge funds.
This content is relevant given VCM’s active involvement in investing, and it has been preserved for the benefit of VCM brokers, service suppliers, business associates, and former clients who can still use their passwords to access past reports, VCM performance records, and other passworded information.
The sections below contain information that was being provided to our limited partners and prospects when VCM was accepting outside investments.
|
To Our Limited Partners
|
I founded ValueSearch Capital Management (VCM) more than 20 years ago. Its investment principles and rules of conduct with prospects, limited partners, service providers, and regulators reflect my personal principles to a great degree. By studying the documents on this website, you will learn about VCM’s investment frameworks, our past investment returns, and the investment manager who will manage the hedge funds you may become a limited partner of.
And in your search for a hedge fund manager, nothing will be more important than establishing your trust in the fund manager, and relying on this trust when events in the market or the economy happen too fast for your own thoughtful reflection.
We will be up-front with you on this website, and we will disclose our past returns and investment decisions, including our mistakes. The website will allow you to study our investment frameworks, our legal framework, and the principles that govern our relationship with our limited partners.
If you become a limited partner of one of the hedge funds run by VCM, you will benefit from what you see on this website: an honest discussion of our decisions, returns, and strategic moves. We will treat you as a true partner, and we expect you to put some effort into understanding the General Partner, who will manage your money. Take your time and get to know us. Our website is an excellent tool for this, but you must be willing to put some time into this effort.
During the next crisis of the stock market, your thorough study of our past decisions, our past letters to our partners, and our past returns, will allow you to understand our decisions. That’s when your homework in studying your manager will pay-off, the same way our homework pays off when studying the companies and instruments we invest in. Doing our homework allows us to make profitable decisions when many market participants base their decisions on emotions or shallow knowledge, quickly obtained during the crisis.
VCM’s website will allow you to make intelligent decisions related to choosing and monitoring the manager of your hedge fund. Use it well.
With warm regards,
Michael I. Schwartzman, President
ValueSearch Capital Management
|
ValueSearch Investment Strategies – Summary
|
Since 1987, the accomplishments of ValueSearch Capital Management have been measured by the success of its clients. Many of the firm's current relationships span two decades.
These relationships have endured based on a foundation of performance, integrity of VCM’s management, and personal attention. As our clients can attest, VCM is committed to maximizing total return while managing levels of risk within the constraints agreed upon at the outset of the investment.
All ValueSearch investment strategies are simple but effective: they force investment decisions based on a long-term time horizon to achieve clients’ goals.
|
Partnerships Managed by VCM
|
VCM manages limited partnerships (hedge funds), both domestic and offshore, whose investment framework was developed by VCM since its inception in 1987.
ValueSearch Equity Strategy is based on a Growth-at-Reasonable-Price (“GARP”) long-term investing approach. ValueSearch Equity Strategy is based on the premise that outstanding long-term results can be achieved by investing in a small number of extremely well run companies, while timing these investments so that they are long-term by nature.
ValueSearch Equilibrium Strategy, is a highly disciplined, proprietary to VCM strategy, and is based on the most recent research of ETF properties and behavior.
Partnerships managed by VCM are open only to US accredited investors and non-US investors meeting similar restrictions. More about the definition of “accredited investors” can be found in How to Access This Site. Make sure, please, that you understand the Terms of Use and Disclaimer.
|
Terminology
|
A few words about the terminology used on this website: You have already noticed the terms “partner”, “limited partner”, “General Partner”, “investment manager”, “hedge fund”, and “partnership”.
While the exact definitions of these words can be found in the legal documents elsewhere on this website, for most purposes it is sufficient to remember that the General Partner (in this case, VCM) manages the partnerships.
The partners in these partnerships are called “limited partners”, or sometimes simply “partners”. Partnerships are also sometimes called “hedge funds”, and limited partners are sometimes called “clients”.
The General Partner of the partnerships is sometimes called the “investment manager” of the partnerships.
|
You and VCM's Website
|
You may never have dealt with a hedge fund, and the notion of filling out the Qualification Form and verifying your status as an “accredited investor” may strike you as uncomfortable and perhaps even intrusive. We certainly do not wish to make you uncomfortable, or to intrude, but once a money management firm has chosen to use hedge funds as the form of managing clients’ investments, government regulations pretty much determine many of the procedures that you will encounter here.
These procedures call for limited access to much documentation, absolutely restricted access to all data on past performance, and the need to sign relatively voluminous partnership agreements. All General Partners of hedge funds must adhere to these government regulations, and our ways of dealing with prospects reflect that common fact.
Out of necessity, many of you will first go through the process of being a Visitor with no access to the restricted areas, then a Registered Guest, and later, perhaps, an Observer. The website provides you with the ability to proceed with the process of study and decision making at your own pace. Of course, we are available to answer your questions, and you may still call us and request an information package.
We prefer not to print and mail too many brochures and thick agreements. We rely on this website to deliver substantially all information that you may need to study VCM, research its past returns and, finally, to sign the partnership agreements. These partnership agreements are available for you to review online, but at the end they either must be agreed to by email, or must be signed and physically delivered to us.
There is a great deal of information here, and we hope it will allow you to make a comfortable decision.
|
Take the Time to Decide
|
We want you to make a thoughtful decision about becoming a partner. Our partnerships invest for the long term. “Trial” investments by some limited partners “to see what happens” and withdrawn after a few months are of no interest to us. These short-term investments do not match our investment horizon, and they may damage the returns of the long-term partners whose well-being is our paramount concern.
These “trial” investments, not well-thought-out at either end of the investment process, may hurt our long-term investors because of transaction costs, tax ramifications, and the dissipation of the hedge fund manager’s attention. We always guard against running our business this way.
|
|
|
