Atlas Asset Management · ZISIF §15

Investment
Strategy

LONG-ONLY · GROWTH EQUITY · QUALIFIED INVESTORS
TARGET 20%+ P.A. · HORIZON 3–7 YEARS PER POSITION
BENCHMARK: MSCI EM SMID CAP (EEMS)
SMID 60–70% · EM 20–30% · EQUITY STORIES 10–15%
Mandate at a glance
20%+
annual return target
3–7yr
holding horizon per position
€25B
max market cap universe
15%+
minimum revenue CAGR
Investment universe — three pillars
60–70%
SMID Caps
Pillar I · Core
tech infra fintech industrial tech healthcare tech automation
20–30%
Emerging Markets
Pillar II · Geographic edge
CEE LATAM Asia dual-listed
10–15%
Equity Stories
Pillar III · Barbell / catalyst
spin-offs buyouts turnarounds deep tech moonshots
What we want — and what we refuse
Quality criteria — hard requirements
Business model qualityDurable, recurring, scalable revenue
Competitive moatNetwork / IP / switching costs / brand
Management qualityFounder-led preferred, skin in game
Revenue growth15%+ CAGR minimum at entry
Return on invested capitalAbove WACC, improving trajectory
Free cash flowClear FCF path, high conversion
DividendsAvoided — prefer capital reinvestment
Structural tailwinds10-year+ secular trend required
Technology profile preferenceDiversified biz model, not pure hype
Examples of preferred techSamsung, MSFT, NVDA-type diversity
Valuation at entryMeaningful discount to intrinsic value

"We do not want companies just for the count. We want businesses we'd be happy to own for decades."

— Atlas AM · investment principles
Anti-universe — zero exceptions
✕ Harmful companies
Tobacco · Weapons & defense contractors · Gambling · Any company that kills or severely harms people and animals · Serious environmental destruction
✕ Structurally cursed sectors
Airlines · Pure commodities without pricing power · Chronically low-ROIC businesses · Unprofitable companies with no credible FCF path · Regulated utilities
✕ Dishonest management
Any history of accounting manipulation · Related-party transactions · Misleading or consistently missed guidance · Repeated integrity failures of any kind
✕ Structural secular losers
Companies fighting long-term headwinds · No FCF visibility · Zombie firms sustained by debt or subsidies · Disrupted industries with no reinvention plan
✕ Value traps
Cheap for a reason · Value without growth catalyst · Management that destroys capital via buybacks at high prices or poor M&A · Deteriorating moat
no tobacco no defense no gambling no airlines no fraud risk
Mandate constraints & investment process
Mandate hard constraints
No leverage — ever HARD
No short selling HARD
No currency hedging HARD
No mechanical stop-losses PHILOSOPHY
No calendar rebalancing PHILOSOPHY
Long-only equity + ETFs permitted CORE
Growth orientation — no value traps CORE
No dividends preferred — capital reinvestment PREF
CZ-domiciled vehicle · Czech investor framework DOMICILE
Volatility is opportunity, not risk EDGE
Risk = permanent loss of capital, not drawdown EDGE
Investment process
1
Idea sourcing
Quantitative screens on growth / ROIC / multiples · industry letters and primary research · insider-buying clusters · scuttlebutt · primary product observation
2
Quick kill / keep filter
Anti-universe check · Management integrity scan · Business model quality · Does the tailwind actually exist for 10+ years?
3
Deep analysis
Full thesis write-up · DCF + scenario analysis · Moat mapping · Bear case articulated in detail · Valuation range with margin of safety
4
Watchlist staging
Radar → Research → Candidate → Position. Monitor fundamentals vs. valuation continuously. Force-rank quarterly.
5
Entry — discount-based sizing
Conviction × discount → target size (see sizer). Tranche: 3 buys over 4–8 weeks. Zero at fair value. Never chase price.
6
Ongoing monitoring
Earnings review (48h) · PMI / leading indicators · Add on thesis-confirmed pullbacks · Revalidate against original thesis quarterly
Sources of edge
Time horizon advantage
Willing to hold 3–7 years without forced exit. Most institutions cannot. Quarterly earnings noise is irrelevant to thesis.
Geographic & language edge
CEE is home territory. Spanish for LATAM. Mandarin access for Taiwan research. Analyst under-coverage in EM creates persistent mispricings.
Information sourcing
13F filings · Insider buying clusters · Local language primary sources · Expert network calls · Product-level scuttlebutt · Job listings as signal
Early cycle positioning
PMI inflections, inventory destocking, pricing turns. Act before consensus recognizes the setup. Leading indicators over lagging data.
Anti-consensus patience
Comfortable in positions market hates. No institutional pressure to conform. Willing to look wrong for 12–24 months if thesis intact.
The best opportunities are found at the
intersection of: high quality business + temporary market
pessimism + structural long-term tailwind.
Portfolio construction & performance framework
Watchlist stages
01 RadarFirst mention, no analysis yet
02 ResearchActive write-up in progress
03 CandidateFull thesis, waiting for price
04 Position — starterFirst tranche deployed
05 Position — full sizeTarget allocation reached
06 Hold — trimmingIV approached, reducing
07 ExitedThesis complete or broken
Leading indicators to track
PMI inflections (50 crossing)Sector rotation signal
Inventory destockingDemand recovery coming
Pricing inflectionsMargin expansion signal
Insider buying clustersOpen window + multiple buyers
13F filingsSmart money positioning
Buffett IndicatorMarket cap / GDP for cash sizing
ScuttlebuttCustomers, ex-employees, reviews
Target portfolio construction
SMID Caps (Pillar I)60–70%
Emerging Markets (Pillar II)20–30%
Equity Stories (Pillar III)10–15%
Cash (dry powder)10–25% tactical
Number of positions15–25
Developed markets minimum70%
EM / International max30%
ETF allocationPermitted, no cap
Single GICS sector max20%
Single theme max25%
Single region max30%
Single currency max25%
Performance framework
Primary benchmarkMSCI EM SMID (EEMS)
Annual return target20%+ annualized
Measurement horizon3–5 year rolling minimum
Max acceptable drawdownNo hard limit — thesis-based
Risk definitionPermanent loss of capital
Volatility viewOpportunity, not risk
Stop-loss policyNone — thesis-based exits only
Cash managementinterest-bearing CZ deposit
Custody & executioninstitutional broker network

"In the long run the market is a weighing machine, not a voting machine. In the short run it is a voting machine."

— Benjamin Graham, The Intelligent Investor

"The true risk for a long-only investor lies in the permanent loss of capital, not in short-term price fluctuations."

— Atlas AM · risk principle