Big River Long Only Equity was +1.75% in May and is +11.1% YTD.
Big River Long Short Equity was +4.27% in May and is +8.6% YTD.
At Big River Capital Management the aim for our long only product is to mimic Warren E. Buffett.
While we recognize that we can not buy whole businesses nor can we invest the proceeds from insurance premiums known as float,
two key drivers of success for Mr. Buffett's Berkshire Hathaway, we can copy the other key performance drivers that Mr. Buffett has disclosed to the public.
First, many advisors believe that investing has changed and that stocks are meant to be rented not owned. For many companies, this is true,
because the CEO's and other executives are not substantial stock owners and instead derive their benefit from the company through salary and bonus.
Mr. Buffett invests in companies where the managers are also substantial owners. This way the interests of management and stock holders are aligned.
At Big River, we seek to invest in companies lead by owners.
Second, many advisors believe that buy and hold is dead. Mr. Buffett often says that the best holding period for an investment is forever.
At Big River, our philosophy is to buy companies that we believe will be around longer than we will, so we don't have to worry about selling them.
Third, Mr. Buffett influences the companies where he owns stock. While he does not necessarily describe himself as an "activist" investor,
in fact Buffett has been hugely influential in establishing the direction at most of the companies where he owns stock.
At Big River, we actively engage with management in an effort to align the interest of management with shareholders
and to insure that the company is following a sound long term plan with measurable short term objectives and goals.
Fourth, Mr. Buffett believes in keeping costs low.
Big River agrees, we reduce costs through low turnover and low commission rates.