Pragmatic Capital Management, Lp.

The Pragmatic Rules of Engagement: 1. The Market is Smaller Than it Seems: Massive institutions with similar strategies control most of the capital in the market. 2. Have Clear Investment Setups: Capitalize on industry selloffs, snap judgements, and overlooked turnarounds. 3. Have Clear Criteria of What's Investable: Only businesses with momentum, competitive advantages, data-driven leadership, an expanding industry, and a cheap stock. 4. Data Tells an Undeniable Story: Don’t rest until you see the story that the data is telling you. Then don’t allow anyone to tell you another one. 5. Analyze Like a Venture Capitalist: Think in terms of flywheels, business models, consumer behavior, and market dynamics. 6. Ask Why: Why is this business not bankrupt? Why does this business not have a monopoly? 7. Stay Hedged: The herd is slow, but powerful. Compounding is also about capital preservation.