Research is critical to our process
From an engineering perspective, we ask foundational questions: How much opportunity is there in each vertical being disrupted? And most importantly, how well does it meet the customer’s value proposition?
To answer these questions, we commit ourselves to original research, starting from the ground up with source documents. Our future-focused research process is built around three pillars:
1. Make no assumptions
Disrupted verticals require investors to build forward-looking valuation models. This is our focus.
2. Data is essential
We comb vast amounts of data to develop investment strategies to build long-term wealth.
3. Take no shortcuts
Before deploying capital, we typically spend months, if not years, investigating the business models and technlogies of our portfolio companies.
At Worm Capital, our objective is to build wealth for investors through long-term capital appreciation. We offer a Long/Short Equity and a Long-Only Equity strategy in private fund format for investors who meet certain net worth and/or income qualifications. Please download our fund presentation below or contact us directly for more information.
Worm Capital, LLC is a SEC registered investment advisor in accordance with the Investment Advisers Act of 1940 who specializes in equity oriented investment strategies. Worm Capital claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions, please contact email@example.com.
Performance information is through 9/30/2018. Returns over one year are annualized. Monthly return numbers for the strategies are available in the fund presentation (link above). Past performance is not indicative of future results. All investment strategies have the possibility of loss.
Performance shown are the returns of The Long-Only Equity Growth Strategy Composite and the Long/Short Equity Growth Strategy Composite of Worm Capital, LLC.
The Long-Only Equity Growth Strategy composite includes portfolios that seek long-term capital appreciation by investing in a concentrated portfolio comprised of approximately 4-8 equity securities identified as potentially exhibiting superior and sustainable growth compared with the broad market. There is no limitation or restriction on the industry and market capitalization of investments held or targeted. This strategy is highly concentrated and will have more stock specific risk and potentially lower correlation with the benchmark than a fully diversified strategy. This strategy may also be more volatile than the benchmark or a fully diversified strategy.
The Long/Short Equity Growth Strategy composite consists of a pooled fund which seeks a positive, above average absolute return over a diverse set of market environments by investing in a concentrated portfolio comprised of long and short equity investments and strategic options positions. There is no limitation or restriction on the industry and market capitalization of investments held or targeted. Long positions are equity investments, or derivatives thereof, identified as potentially exhibiting superior and sustainable growth compared with the broader market. Short positions are equity investments, or derivatives thereof, identified as potentially exhibiting inferior or negative growth prospects compared to the broad market due to specific adverse events, deteriorating fundamentals, and/or momentum considerations, among other potential factors. The strategy does not have a long or short bias mandate. Gross and net exposures are variable depending on market developments, specific long and short opportunities, and updated macro outlooks, among other potential factors. Put and call options may be more volatile than the underlying security it is tied to and can expire worthless. Leverage is utilized through the shorting of securities, and short sale cash proceeds may be used to purchase additional assets. Portfolios within this composite are highly concentrated and will have more stock specific risk and potentially lower correlation with the benchmark than a fully diversified strategy. This strategy may also be more volatile than the benchmark or a fully diversified strategy.
Presentations that comply with the GIPS standards are included in the appendix of the fund presentation which is available above. The benchmark for both strategies is the S&P 500 Total Return Index. This index is a market-value weighted index that measures the total return, including price and dividends, of 500 leading companies in leading industries in the U.S. economy. It is not possible to invest directly in this index.
Worm Capital has been independently verified for the periods October 1, 2016 through March 31, 2018. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.