Port Wren Capital, LLC
Finding Value InvestmentsSM
FAQ - Investment Strategies, Services & Companies
Overview of Our Service
We help retail investors pick individual value stocks for above average gains over a multi-year horizon.
Some Common Questions
Q1: Do we charge an annual percentage management fee on the capital deployed?
Q2: Do we charge a percentage based on the performance of your investments?
Q3: Do we try to predict the future of the stock market or the economy as a whole?
Q4: How can we trust your opinions when it is my money at stake?
Q5: In general, how do you find good value investments?
Q6: Do you ever have any access or control over my investment funds or those accounts?
Q7: Are you affiliated with or influenced by any special interest?
Q8: Do you provide Financial Planning services?
Q9: Do you provide Financial Advisor, Registered Investment Adviser (RIA) or Wealth Management services?
Q10: Do you sell Mutual Funds, Index Funds, Exchange Traded Funds (ETF), Bond Index Funds and the like?
Q11: Are you an Investors Club in South Carolina or Georgia?
Q12: Are you an Angel Investors group in South Carolina or Georgia?
Q13: Are you an Venture Capital group in South Carolina or Georgia?
Q14: Are you affilated with PricewaterhouseCoopers(PwC) in South Carolina or Georgia?
Q15: What is Port Wren Capital, LLC?
A1: No, we do not. Unlike most private equity firms, hedge funds and the like that charge not only a flat 2% management fee on the total Asset Under Management (AUM) and an additional 20% on any profits earned. For example, if you invested $200K you would pay them $4,000 automatically. But, with Port Wren Capital, LLC you never pay us a management fee. Return to Questions
A2: No, we do not. Unlike most private equity firms, hedge funds and the like that charge in addition to a flat 2% management fee for Assets Under Management (AUM) they charge an another 20% on any profits earned. For example, if you invested $200K and realized a 8% profit you would pay them an additional $3,200 on that 8%. In total you would pay them $7,200 for both the flat 2% management fee plus the 20% performance fee. In contrast, with Port Wren Capital, LLC you never pay based on the performance of your investments. Return to Questions
A3: No. As Warren Buffett says, "A prediction about the direction of the stock market tells you nothing about where stocks are headed, but a whole lot about the person doing the predicting." And another one of his quotes that applies is "We have long felt the only value of stock forecasters is to make fortune-tellers look good." Return to Questions
A4: We would recommend that you look at several factors. First, consider our past track record. Second, keep in mind, that we invest our own money into the same ideas that we are providing you via our subscription service. Those are real gains from investing our own money into our own research. As Warren Buffett says to his investors, "We will only do with your money what we would do with our own." In addition, in June of 1996, Berkshire's Chairman, Warren Buffett issued a booklet entitled "An Owner's Manual" with the purpose to explain the broad economic principles of operation. Contained therein is the statement, "In line with Berkshire's owner-orientation, most of our directors have a major portion of their net worth invested in the company. We eat our own cooking." As is with Buffett, we too eat our own cooking. Therefore, you can rest assured that our best interest and your are aligned. Return to Questions
A5: We tend to be contrarians. As one example, on 2/17/2010 during the Financial Crisis and during a major recall we took a position in Toyota Motor Corp. (TM) at $74.09/share and sold it on 1/8/2015 at $127.90/share with a realized gain of 72.22%. The company was simply under valued in the market based on temporary events, but it had a long history of being a good company, making quality vehicles, selling large volumes with good management. To use the words of Warren Buffett, "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." This is referring to the contrarian view and another quote that applies to this specific example rather nicely is, "A great investment opportunity occurs when a marvelous business encounters a one-time huge, but solvable problem." Return to Questions
A6: No, we do not. We only provide an investment research subscription that you may use to invest along side us or add to your own equity investments. We use fundamental analysis to conduct our security analysis looking for value investments. Return to Questions
A7: No, we are not. We are independent. We do however have a distinct interest in growing our capital and a willingness to help other do the same. We are not influenced by financial advisors, wealth manages, certificated financial planners CFP, investors clubs, angel investors, venture capitalist, investment bankers and the like. Return to Questions
A8: No, we do not. A Certificated Financial Planner (CFP) in general, provide a financial road map (plan) for you as you go through the various stages in life to ensure you have the funds to buy your home, put your children through college and retire comfortably. Financial Planner fees vary. Fees can be a percent of your account value. A typical asset management fee can range from 2% per year on the high side to .50% per year on the low side. Or charge a commission or a combination of a percentage and a commission. Also fees can be assess on an hourly bases, a flat fee for a specific project, a quarterly, annual retainer fee or a front-end sales commission on investment products. Return to Questions
A9: No, we do not. A Financial Advisor or Registered Investment Adviser (RIA) or Wealth Management company provides specific individualized financial advise and must be licensed with either the SEC or the State. In general, they help those individuals with existing higher levels of wealth that wish to protect their already attained wealth and reduce their tax liabilities. Financial Advisor fees vary. Fees can be a percent of your account value. A typical asset management fee can range from 2% per year on the high side to .50% per year on the low side. Or charge a commission or a combination of a percentage and a commission. Also fees can be assessed on an hourly bases, a flat fee for a specific project, a quarterly, annual retainer fee or a front-end sales commission on investment products. Read our article Top Financial Advisors - ETF - Growth vs. Value Returns. Return to Questions
A10: No we do not. We do not sell any financial vehicles. Its our judgment that these products may be useful for the passive investor, but not for the active investor. They tend to offer average returns. For example, a S&P 500 Index Funds mirrors the companies that make up that index. Return to Questions
A11: No we are not. Investor Clubs or Investment Clubs are typically setup where an individual pools their capital with others and as a group pick individual stocks. They tend to create what we call group think which leans toward investing in the most popular stocks and not seeking alpha. Read our article Investment Clubs: Why the Decline? Return to Questions
A12: No we are not. Angel Investors groups are typically restricted to individual investors who are "qualified investor". Meaning you must have income of $200K, or joint income of $300K in the two most recent years with an expectation of meeting that same income again, or as an individual or joint net wealth of $1Million (excluding primary residence). These groups consist of individuals that pool their capital into a fund that invests in very high risk business early start-ups needing capital. These investments are for firms prior to venture capital. The numbers tell us that only a few provide very high returns while most do not. Return to Questions
A13: No we are not. Venture Capital groups typically supply capital to small businesses believed to have long-term potential. Most are past the Angle Investors but not able to access public capital. Success rate is a mixed bag. Read our article, Angel Investing is Not for Everyone. Return to Questions
A14: No we are not. PricewaterhouseCoopers (PwC) is among the "Big Four" accounting and auditing firms along with Deloitte, Ernst & Young (EY) and KPMG. Return to Questions
A15: Port Wren Capital, LLC is a independent stock investment research firm. Our mission is to find undervalued U.S. publicly traded stocks to invest our own capital seeking above average returns over a multi-year time table. Then, we offer that same research to retail investor with the same objectives. Thus, we are engaged in the business of financial news, commentaries and publishing. We are not a broker, a dealer, or a registered investment adviser. Return to Questions
Investment Research ExpertsSM
Contact InformationE-Mail: Info@PortWrenCapital.com Phone: 803-415-1935
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