Lukasz Tomicki believes that
frenzied markets dominated by short-term traders and index investors have created an opportunity for qualitative and fundamentally-driven strategies. Mr. Tomicki also maintains that qualitative processes are hard to replicate and arbitrage – for example, there is no Bloomberg screen for switching costs or network effects.
Mr. Tomicki and his team at LRT Capital focus on making concentrated investments in companies with sustainable competitive advantages (“moats”), proven management teams, and long growth runways – all three are sources of perpetual inefficiency and mispricing. LRT Capital's Economic Moat Strategy now has a seven-year track record, doubling the market return with half of the downside risk.
Moats force you to take a long-term view – an advantage when other market participants are obsessed with quarterly results. However, Mr. Tomicki also criticizes the inflationary use of “moats” as an investment concept, and continues to explain what in his view truly is a moat and what isn't.
In this Opalesque.TV BACKSTAGE video, Mr. Tomicki explains:
- How to identify economic moats
- What LRT Capital defines as a “sustainable” moat
- Four sources of competitive advantage
- Portfolio construction: Including long term US Treasuries as a hedge against short term market volatility
- Why risk management is the most important part of a portfolio manager’s work
Mr. Tomicki is an experienced entrepreneur, having cofounded and sold a technology company that developed software for tracking state campaign finance and legislation. He also worked in the political consulting industry, where he worked with lobbyists, campaign managers and outside groups on structural reforms including improving public education, tax reform and economic growth policies.
Mr. Tomicki has been managing a portfolio of public equities since 2006. After graduating from the Olin Business School in 2012, Mr. Tomicki founded LRT Capital Management in 2012 as a private investment vehicle for himself and his family. The fund opened its doors to outside investors in the third quarter of 2017.
Mr. Tomicki holds a degree in finance from Seton Hall University graduating with magna cum laude distinction, and an MBA from Washington University in St. Louis where he was class valedictorian. He is a CFA charterholder and has over a decade of investment experience.
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Lukasz Tomicki believes that
frenzied markets dominated by short-term traders and index investors have created an opportunity for qualitative and fundamentally-driven strategies. Mr. Tomicki also maintains that qualitative processes are hard to replicate and arbitrage – for example, there is no Bloomberg screen for switching costs or network effects.
Mr. Tomicki and his team at LRT Capital focus on making concentrated investments in companies with sustainable competitive advantages (“moats”), proven management teams, and long growth runway ...more
