Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

Cherokee Group's GARP: Growing Attractive Royalty Profits

Long-term investing is predicated on finding companies with economic models that can sustain high returns long into the future, paying a fair price and holding on. We put ourselves in the best position to find these companies when searching for business models that make it much easier to achieve high returns well into the future, and have revenue streams that are nearly guaranteed over the near term providing downside protection. Brand management companies provide many of the qualities that we look for: almost no capital reinvestment need, nearly guaranteed minimum revenue streams through licensing agreements, low operational risk, and high returns on little capital commitments. Cherokee Group (NASDAQ:CHKE) is a brand manager that pioneered the direct-to-retail licensing model

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