“Excellent ideas are rare...that’s why concentration is so important” -Warren Buffett
Businesses that occupy leading positions in their respective industries with long term track records of leadership sustained success. These companies generate returns in excess of 15% annually, can pay off their debt with cash flow in less than three years.
Businesses run by management teams that are both skillful operators and intelligent capital allocators.
Businesses that trade between 4-10x normalized earnings.
Mr. Begun has over twenty years of experience in valuation-based investing. Prior to co-founding 3G Capital he worked as a research analyst for Fiduciary Asset Management and also for A.G. Edwards & Sons where he was responsible for equity research across multiple sectors. From 2010 through 2017 Mr. Begun sat on the Board of Directors of AlarmForce Industries Inc, a leading North American residential alarm monitoring company, whose shares are traded on the Toronto Stock Exchange. From 2012 through 2017 Mr. Begun was a Non-Executive Director at Grafenia PLC, a leading British provider of software and service solutions to the graphic design industry, whose shares are traded on the London Stock Exchange. Mr. Begun graduated with Honors from the University of Chicago with an M.B.A. in Accounting and Finance and he also graduated valedictorian from Western Kentucky University with a B.S. in Finance. He is a Chartered Financial Analyst and a member of the Toronto Society of Financial Analysts. Mr. Begun has been a guest speaker at a number of universities and also at various investing conferences giving lectures on the topic of investments since 2001. He was named the recipient of CFA Magazine’s annual Most Driven honor in 2007.
Mr. Bailey has over twenty years of experience in valuation-based investing. Before cofounding 3G Capital he was a research analyst with Fiduciary Asset Management responsible for equity research. Prior to his tenure with Fiduciary Asset Management Mr. Bailey worked as an analyst in the investment banking group at Robert W. Baird & Co. providing analytical support on mergers and acquisitions, public offerings, and other financial advisory services. Mr. Bailey graduated from St. Louis University with a B.S. in Finance and a minor in Accounting.
Cory Bailey and Pavel Begun have been managing the fund for over 16 years. Together they have over 40 years’ experience working in the public equity markets.
3G Capital’s team spans the entire investment universe for the best businesses that fit the 3G model.
3G Capital only acquires their best ideas. The portfolio consists of 8-10 stocks, the top 5 represent 65% of the holdings. 3G Capital's team avoids the “Institutional Imperative” having up to, or over 100 positions in a portfolio. The level of in-depth analysis, extensive knowledge of individual company, their business, industry/sector, and country specific knowledge becomes diluted. Such portfolios rarely have long term perspectives., allowing them to own only companies that fit the idea of a good business, run by good management, at a good price.
The 3G Capital Global Concentated Equity Fund is built for long-term capital appreciation. The biggest risk is time. The fund holds its investments for an average of 3-5 years.
3G Capital’s work is to identify the largest mispricing where the market is the most wrong to make the most money.
3G Capital’s process is consistent, repeatable and in-depth. It is grounded upon facts and rational analysis, and has been proven over decades.
The 3G Capital team has cultivated relationships around the globe. Cory Bailey and Pavel Begun have traveled around the world and have connected with many industry experts, analysts, and other key people that help them understand the landscapes of the industries and countries within which they invest. They are known for creating relationships with the owners of many of the companies they own, as they believe it will give them a better sense of how the business will fare in the long-term.
This information is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase an interest in the Partnership managed by 3G Capital Management LLC (“3G Capital”). Such an offer, if made, would be made solely to prospective investors whose suitability has been established and solely by way of a confidential private placement memorandum. This material is intended for informational purposes only. Neither the information contained herein nor any opinion expressed shall be construed to constitute investment advice.
This material contains certain forward-looking statements and projections. Such statements and projections are subject to a number of assumptions, risks and uncertainties which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements and projections.
The views expressed herein are those of 3G Capital investment professionals at the time the comments were made and are subject to change without notice.
3G Capital relies on third-party vendors to provide certain data presented or derived herein. Although 3G Capital uses third-party vendors that it believes are reliable, it cannot guarantee the accuracy of such information and does not represent that such information is accurate or complete.
3G Capital’s performance figures presented herein are audited for years 2006 through 2018. The figures for 2019 are unaudited estimates based on the best information currently available, and are subject to subsequent revision by the Partnership’s auditor. The figures for years 2004 and 2005 are unaudited. Starting January 1, 2009 as prior to that date the Original Partnership’s geographic focus was largely limited to North America.
Past results are not necessarily indicative of future performance.
The MSCI ACWI (“Index”) returns are provided solely because they are believed to be widely used performance benchmarks. 3G Capital traded securities may not be included in the Index and an investment in the Partnership should not be construed as an investment in the Index or a program that seeks to replicate, or correlate with, the Index. The Index includes dividends reinvested.