Why the name “Worm” Capital?

 

Our founder chose the name “Worm Capital” because he wanted a name that would be unique—and one that would reflect the firm’s investment philosophy, research process, and culture. Our firm is unafraid to have contrarian viewpoints: We seek our own conclusions based on extensive, deep research. And we avoid the groupthink, copycat mentality associated with much of traditional Wall Street. 

We like earthworms because they dig beneath the surface, they’re resilient, humble creatures that provide essential nutrients to the world around them.  While unglamorous, they are essential to fertility and growth.

We take a similar approach to research - like earthworms, we dig beneath the surface, doing the unglamorous research we believe necessary for long-term outperformance. This is unlike many other investment managers who, in our view, rely on surface level analytics, backward looking models, and valuations shortcuts that may have worked in the past.

A core premise of our investment philosophy is our view that we are living through one of the most extreme eras of technological disruptions in human history. Trends like renewable energies, autonomous vehicles, and artificial intelligence, just to name a few, have the potential to rapidly upend traditional industries.  This makes research and analysis much more complicated than in times of relative stability.  In our view, certain visionary companies will thrive—while many incumbents perish.

Given our market outlook, we developed our own custom “first principles” approach to research and investing in emerging technologies, which we believe provides us with a considerable long-term advantage relative to many of our peers. Generally speaking, we are attracted to highly scalable innovative “disruptors” who exhibit loyal and rapidly expanding customer bases.

In short, Worm Capital is a passionate group of humble researchers focused on new technologies and emergent business models.  Our goal is to provide above average, long-term returns for our investors and to do so, we seek to complete the digging necessary to uncover the top, most sustainable long-term investment opportunities while also avoiding risks unforeseen by the market at large.  Investing in this new framework of disruption will be extremely challenging – but that challenge excites us, and we look forward to what the future holds.