Investment Strategy

Passport Capital invests in businesses approaching inflection points that result from growing demand and strong market positioning. Passport has combined macro-economic and sector analysis to identify opportunities resulting from the long term expansion of leading emerging economies, select natural resource scarcity, and the power of networks, brands, and intellectual property common to the technology, consumer, and service sectors. Investments primarily emphasize public equity securities. Passport also makes highly targeted investments in equity derivatives, select private companies, and swap contracts.

Passport Capital seeks to achieve high compounding risk-adjusted returns in each of its investment strategies. While Passport employs various hedging strategies, we believe our best risk management tool is rigorous research, including consultation with industry, legal and regulatory advisers.


Global Strategy

The Global Strategy is Passport Capital’s flagship vehicle, launched in 2000, utilizing the full capabilities of the firm’s investment team. Diversified across geographies, industries and capitalizations, the Global Strategy draws upon the independent fundamental research and the extensive international reach of the firm’s sector teams which it combines with deep macroeconomic analysis and rigorous quantitative and risk analytics to construct portfolios designed to meet specific risk-adjusted return targets. While primarily focusing on public equities, the strategy has the flexibility to invest in other asset classes (including commodities, currencies, and interest rates) when the firm believes there to be an attractive asymmetric risk/return potential.

 

Long Short Strategy

The Long Short Strategy seeks to deliver attractive risk-adjusted returns over the long term through a portfolio primarily comprised of liquid, equity investments. The strategy targets low correlation to, and a volatility averaging 50-75% of, broad equity indices, and it aims to generate alpha primarily through idiosyncratic stock selection.  The Long Short Strategy is offered with two classes of interests (Class A and Class B), both offering monthly liquidity.  The Class B interests are traded at an approximate 2x leverage to Class A.

 

Special Opportunities Strategy

The Special Opportunities Strategy seeks to earn superior long-term returns through a concentrated portfolio of public and private investments.  The strategy is characterized by a concentrated portfolio of generally around 15 to 25 positions. The strategy has a long-term investment duration that allows the Special Opportunities Strategy to invest in less liquid public and private equities. As a result, the strategy is more suitable for investors without immediate liquidity needs.  This longer investment duration allows us to target higher returns in exchange for an increased volatility profile.