Overview

Assets

$22.9 million

As of December 31, 2022

Inception Date

August 31, 2022

Holdings

8-15

Turnover

Typically 30% of less

Fact Sheet

Body

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

Team

Commentary

Innovators