KORR was created to act as the General Partner for Special Purpose Limited Partnerships that target deep value investments. We bring value to our partners through innovation, discipline, and leadership. We apply a private equity approach of rigorous due diligence and fundamental analysis to identify and acquire positions in public equities that are selling at significant discounts to their private market value.
KORR screens thousands of public companies every day to identify potential opportunities.
We screen publicly listed companies whose market cap is between $50 million and $2 billion because:
- they are less followed which allows the disparity between market price and intrinsic value to become exaggerated and gives us a larger margin for error during a down market
- they are less correlated to the market than mega-cap stocks
- our capabilities to make a bid for the entire company or find potential partners is more realistic with a $2 billion and under market cap
- there is less competition from other activists.
We create a summary of:
- the thesis to be proved and disproved
- investment catalysts
We calculate a rough risk/reward profile for each investment to see if it falls within predetermined parameters.
These parameters include:
- survivability of the business itself;
- balance sheet, debt burden, and macro events;
- whether the upside is far greater than a temporary or long-term downside. For example, we are prepared for a 20% pullback when we see an upside of 100% within 1 year.
Market Survey for Expectations Gap
We contact significant stakeholders, management, competitors, and industry participants to screen for valuation controversies or gaps in expectations based on KORR’s estimations.
We decide if an idea can be properly analyzed within the fundamental investment process.