Our Investment Approach

1. Performance & Track Record

Our Investment Performance: A Discipline-Driven Approach

At Limitless Capital Management, we believe transparency is the foundation of trust. While past performance does not guarantee future results, our investment approach has been consistently applied since our founding in 2009.

Our Core Equity Strategy: The Limitless Value Approach
*A concentrated portfolio of 15-25 high-conviction equity positions, selected through fundamental business analysis.*

Performance Highlights (Methodology):

• Philosophical Consistency: Our investment process has remained unchanged for 5+ years, grounded in the principles of margin of safety, intrinsic value, and business-owner mindset.

• Risk Management Record: Through multiple market cycles, our discipline around position sizing and cost control has helped manage downside volatility.

• Client Alignment: 100% of our investable capital is invested alongside our clients in the same strategy.

"We measure our success not just by returns, but by the consistency of our process and the achievement of client-specific financial goals."
— Marcus A. Turner, Principal

[COMPLIANCE NOTE: "Performance data represents back-tested/hypothetical/actual results and is not a guarantee of future performance. Current performance may be lower or higher than the performance data presented. Please contact us for complete performance information."]

2. Benchmarks & Comparison Framework

How We Measure Success: Beyond the Index

We believe appropriate benchmarking is essential for evaluating performance. Our primary strategy is measured against multiple benchmarks to provide complete context:

Comparison MetricPurposeOur PhilosophyS&P 500 IndexLarge-cap U.S. equity referenceWe expect to underperform in speculative bull markets and outperform in corrective periods due to our value orientationRussell 1000 Value IndexValue equity comparisonCloser philosophical alignment, though we are more concentrated and selectiveCPI + 5%Real return objectiveOur primary goal: deliver meaningful real returns over full market cyclesCustom Client BenchmarksPersonal financial goalsUltimately, the most important benchmark is whether we're helping clients achieve their specific objectives

Why Multiple Benchmarks Matter:

• No single index perfectly captures our concentrated, high-conviction approach

• We evaluate performance across different market environments (growth vs. value cycles)

• We focus on relative performance in down markets as a key risk management metric

3. Risk-Adjusted Return Metrics & Framework

Our Risk Management Philosophy: Discipline Over Speculation

We employ multiple risk management frameworks that elite talent will recognize and appreciate:

Key Risk Metrics We Monitor:

MetricDefinitionOur Target/ApproachPortfolio Concentration% of portfolio in top 5 holdings25-40% (high conviction requires concentration)Maximum Drawdown ControlWorst peak-to-trough declineAim to capture < 85% of market declinesBeta Relative to MarketSensitivity to market movementsTarget 0.7-0.9 (less volatile than broad market)Active Share% of portfolio different from indexTypically 80%+ (truly active management)Quality ScreenFinancial health of holdingsMinimum 3-year profitability, strong balance sheets

Our Three-Layer Risk Framework:

1. Business Risk Assessment: Fundamental analysis of each company's competitive position, financial health, and management quality

2. Portfolio Construction Risk: Position sizing, sector limits, correlation analysis

3. Behavioral Risk Controls: Systematic rebalancing, buy/sell discipline checklists, emotional bias safeguards

This disciplined approach to risk has allowed us to maintain composure during market stresses—a key differentiator that potential team members will value.

4. Sample Portfolio & Strategy Examples

See Our Process in Action: A Case Study Approach

While we cannot disclose current holdings, here is an example of our analytical framework applied to a hypothetical investment:

Investment Analysis Framework: The LCM 4-Part Test

Case Study: Evaluating a Mature Technology Business

1. Business Quality Assessment

   • Economic Moat: Does the company have sustainable competitive advantages?

   • Example Criteria: Network effects, switching costs, brand power, cost advantages

   • Our Process: 30+ point checklist evaluating durability of returns

2. Management & Alignment

   • Capital Allocation Track Record: How has management deployed cash flow?

   • Owner-Orientation: Are incentives aligned with long-term shareholders?

   • Our Process: Analysis of 5+ years of capital allocation decisions

3. Valuation & Margin of Safety

   • Multiple Valuation Methods: DCF, comparables, private market value, liquidation analysis

   • Required Discount: Typically 30%+ below our estimate of intrinsic value

   • Our Process: Three independent valuation approaches must converge

4. Catalyst & Time Horizon

   • Path to Realization: How does the gap between price and value close?

   • Time Frame: 3-5 year investment horizon minimum

   • Our Process: Identified triggers for re-evaluation

Portfolio Construction Example

Hypothetical Portfolio Structure:

• Number of Holdings: 18-22 positions

• Position Sizing: 3-8% per holding at cost

• Cash Position: Typically 5-15% (opportunity reserve)

• Sector Limits: Maximum 30% in any single sector

• Liquidity Minimum: $100M+ average daily trading volume

Recent Investment Themes We've Explored:

• Legacy technology businesses with transition opportunities

• Financial services companies trading below tangible book value

• Market misinterpretations of regulatory changes

• Compounders temporarily out of favor