Aquitania Capital Management, LLC

Investing With Conviction

Investment Philosophy

 Aquitania invests across the capital structure in a manner that is nimble and opportunistic. We identify investment opportunities by conducting thorough, bottom-up, fundamental due diligence of the securities of companies we believe are experiencing a dislocation in value due to complex, misunderstood events and situations which can be researched and analyzed. Aquitania filters those opportunities to select a limited number of liquid investments which we believe will generate attractive risk-adjusted returns with a focus on capital preservation.

We believe that inefficiencies in the public markets can cause meaningful disparities between the trading value and true value of various securities. We apply a systematic approach to determine the intrinsic value of a security, and we seek to identify catalysts to explain why the security is mispriced and anticipate events or circumstances likely to cause the market to realize the security’s embedded value. Our method of analysis is rooted in intensive fundamental research. To further explain, the key elements of our strategy and methods of analysis are:

  • Value-Plus-Catalyst: We believe that a disciplined “private equity” methodology is the best way to evaluate the fair value of a security. This means approaching valuation as if we were buying or selling the enterprise, rather than simply trading in its securities. Our “bottom-up” analysis focuses first on a company’s business, with an emphasis on the business’ capability to generate free cash flow. We also focus on and seek to identify actual and potential catalysts, events and circumstances that both explain and are likely to eliminate the gap we have identified between the trading value and the fair value of a security.

  • Fundamental Research:Rigorous fundamental research is integral to our bottom-up approach. We believe that first-hand, independent due diligence is critical to an understanding of the key drivers of a company’s business and industry. This may include developing financial models, conducting inquiries or confirmations with customers, suppliers and competitors, and engaging in discussions and meetings with management teams.

  • Contrarian Focus on Pockets of Inefficiency: We look for securities that have a significant difference between their trading value and their fair value. We concentrate on “pockets of inefficiency” where the market tends to misunderstand or misprice securities, such as companies undergoing transformational changes, troubled companies, companies in other circumstances that are difficult to analyze and underfollowed companies