We are fundamental value investors seeking to achieve superior risk-adjusted returns.

Our competitive edge is derived from our focus, discipline, and people.

Integrity, accountability, and alignment of interests are the cornerstones of our firm.

Sapience:

Wisdom | Sagacity | DiscernmentThe ability to apply insight, knowledge, and experience.

About

Independent, majority employee-owned
investment firm

Sapience Investments, LLC is a value-oriented institutional investment management firm based in Newport Beach, California. We invest in attractive businesses that we believe are trading at a discount to intrinsic value. We currently manage two strategies: Small Cap Value and SMID Cap Value.

For more information, see our September 28, 2016 press release

Integrity without knowledge is weak and useless, and knowledge without integrity is dangerous and dreadful.

— Samuel Johnson

Philosophy/Process

Seek to deliver superior risk-adjusted returns

We are committed to generating superior risk-adjusted long-term returns through fundamental analysis while focusing on capital preservation. We believe taking a private equity approach to public markets and owning businesses at attractive valuations with a margin of safety should meet these objectives.

An Owner's Perspective

Our team evaluates investments from the perspective of a business owner, seeking companies with sustainable business models, trading at attractive valuations, and typically possessing value drivers capable of narrowing the valuation gap.

High Conviction

Our fundamental, bottom-up, high conviction approach requires intimate knowledge of the industries, business dynamics, and management teams of each of our underlying companies. Our true active management style underscores our ability to identify value drivers and deliver alpha.

Long Horizon

We take a patient, long-term approach to owning businesses at attractive valuations with a margin of safety. Our private-equity investment approach positions our strategies for strong risk-adjusted returns as well as low correlation with the market and peers over our investment horizon.

We employ a well-defined investment process that is consistent and repeatable.

Idea Generation

Keen judgment and innovative perspective in stock selection is the primary source of alpha in our strategies.

Rigorous Research

Our investment process is designed to capitalize on our intellectual capital and disciplined approach to decision making.

Our focus on companies with sustainable business models trading at discounts to our estimate of intrinsic value offers a built-in margin of safety and thus, downside protection.

Focus:

  • Sustainable business models
  • Discount to intrinsic value
  • Value drivers

Discipline:

  • Built-in margin of safety
  • Downside protection
  • Continual risk/reward assessment

Differentiated Portfolio Construction

  • Low correlations with the market and peers
  • High active share
  • Sector weights are a by-product of our fundamental, bottom-up stock selection process

Price is what you pay. Value is what you get.

— Warren Buffett

A private equity-style approach to public markets

Strategies

Small Cap Value

Our Small Cap Value strategy consists of investments in businesses with market capitalizations between $300 million and $4 billion at initial investment. We seek to own approximately 60 to 70 investments diversified across sectors, industries, and economic cyclicality. The strategy is measured against the Russell 2000 Value Index.

SMID Cap Value

Our SMID Cap Value strategy consists of investments in businesses with market capitalizations between $1 billion and $15 billion at initial investment. We seek to own approximately 40 to 50 investments diversified across sectors, industries, and economic cyclicality. The strategy is measured against the Russell 2500 Value Index.

See our current portfolio commentary

Team

Long History of execution

Our caliber of talent is a reflection of our culture. Sapience is composed of an established team, with a proven long-term track record of execution and performance. Our analysts are sector experts, possessing deep knowledge and expertise in their respective areas. As a team we share a profound passion for our distinctive approach to investing.

Our People

If you don't stand for something, you will fall for anything.

— Alexander Hamilton