Longsplice Investments is a socially responsible mutual fund company bringing market-neutral reduced volatility to mutual fund investors. Our fund is long-short and picks stocks based on growth at a reasonable price (GAARP). The portfolio uses a quantitative model designed from economic principles up, and back-tested. Our ideal customer wants stock-like average returns with low volatility, while investing in socially responsible companies.
A long splice (the sailors among you know) is a way to join two traditional 3-strand ropes into one, essentially by braiding the loose ends of one into the body of the other & v.v.
The symbolism is the intertwining of many strands to make a whole: different bits of economics/finance/investing, and ethics/policy/politics combined into one fund concept.
About GAARP investing:
Growth at a Reasonable Price (or alternatively Value with Reasonable Growth) is a stock-picking style that balances price against performance. What companies are performing so well that you would want to own the whole thing and nothing else? Of those, what companies are attractively priced? Those are the companies we'll invest in.
About Long-Short investing:
Buying just the best companies is a great start. What happens, though, when the whole market goes down? Even the best companies can drop precipitously on a bad day or in a bad year.
By buying the best and shorting (borrowing and selling) the worst (judged by the same criteria) stocks, the portfolio is substantially protected. As long as the good stocks drop less (or on a good day rise more) than the bad ones drop (or even rise), then a long-short portfolio is making money. The volatility (riskiness) of the portfolio is decreased compared to a typical long-only fund portfolio.
About Socially Responsible investing:
Does your investment portfolio include companies that work against your personal values?
Do you feel stuck being Socially Conscious Unless Money's Involved ( SCUMI )?
There is an answer. Longsplice Investments is one of the few mutual fund companies that explicitly emphasizes selection of portfolio companies that are good corporate citizens.
"Good Citizen" inevitably means different things to different people. Our fund is built around our values:
For info about my thinking and progress, I've been keeping a blog, which I recently moved here to the company site.
You may also read back issues of my CapitalDrain investment opinion newsletter.
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"The real trouble with this world of ours is not that it is an unreasonable world,
nor even that it is a reasonable one.
The commonest kind of trouble is that it is nearly reasonable, but not quite.
Life is not an illogicality, yet it is a trap for logicians.
It looks just a little more mathematical and regular than it is;
its exactitude is obvious; but its inexactitude is hidden;
its wildness lies in wait."
-G. K. Chesterton
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