Overview
Assets
$48.3 million
As of December 31, 2023
Inception Date
August 31, 2022
Holdings
8-15
Turnover
Typically 30% of less
Philosophy
The RMB Innovators strategy is a highly concentrated portfolio of 8-15 publicly-traded enterprise software companies which we believe are particularly well-positioned to capitalize on long duration growth opportunities. Holdings are purchased with a long-term (2-5 year) investment horizon, with anticipated annual turnover of 30% or less.
The strategy focuses on high-growth, emerging, small, and mid-capitalization software category disruptors seeking to gain share of a large and growing total addressable market. Priority is given to companies that we believe are demonstrating innovation and differentiation with regard to product development and/or go-to-market strategy. Emphasis is placed on exceptional leadership teams with a focus on founder-led / founder-engaged companies, i.e. owner-operators.
Process
Investment Approach
- Applies a multi-factor screening approach to narrow the investable universe of companies across the Application Software, Systems Software, and Internet Infrastructure industries; screen factors include revenue growth rate, gross margin, growth/profitability balance
- Relative ranking determined by software-oriented financial metrics such as Burn Productivity, Magic Number, and Rule of 40
- Employs a relative value approach to valuation in the context of company growth rate
- Incorporates feedback from a network of venture capital and software industry experts
- Remains fully invested with cash levels exceeding 12% of the portfolio on only a temporary basis
Commentary