Worm Capital, LLC (“Worm Capital”) is an investment management firm with a focus on equity oriented strategies. The firm seeks to generate long-term, non-correlated absolute returns through the identification of investment opportunities believed to be misunderstood by the broader market.
At Worm Capital, we believe we’re living in a new era of possibilities, opportunities, and casualties without historical precedent. Things like the internet revolution and technological advancements have led to a fully connected world with endless innovation. Thus, competitive advantages are constantly changing and being redefined as every process, product, and business model is overhauled and re-imagined from the ground up. Who will survive and thrive, and who will decline and ultimately perish?
With a multitude of verticals seemingly up for grabs and surely more to come, this consequence appears likely to us: a mind-blowing redistribution of wealth in the stock market as old guard incumbents and stuck-in-the-past business models lacking adaptability are challenged by younger, quicker, and more innovative upstarts. We view it as the stock market’s version of the Cambrian explosion, creating cycles of significant industry reshaping and consolidation, providing the potential for big winners and devastating losers by the conclusion of a given cycle.
We see the next five, ten, or even 20 years being very exciting and believe investors should seek opportunity with earnest. There should be tremendous opportunity for those with vision and execution, but also enormous danger for those who are unaware or unprepared for risks we have not seen before. Given the speed and magnitude of market change in an environment such as this, we feel it is essential to be proactive and flexible.
With the scale, breadth, and acceleration of disruption we believe is yet to come, we have designed a unique, future focused research and portfolio management process with the goal of capitalizing on disruptive cycles we see occurring across industries. Investing in this dynamic environment will be challenging, however, we are optimistic, willing, and excited to meet this challenge with the goal of building our clients a better position in the future.