Roubaix deploys a fundamental long/short equity strategy focused on small cap U.S. stocks. Less diversified small businesses are generally more affected by the drivers that create or destroy equity value over the investment cycle, enabling a favorable environment for long/short equity investing.
We maintain a dynamic focus list of over 300 companies that we consider to be the compelling long and short investment opportunities in terms of the quality of the company's business model, financial structure, and management.
We analyze fundamental factors to determine whether each company can also be a compelling investment. This includes an assessment of the stock’s valuation versus history and peers, recent performance, the potential for catalysts, and investor sentiment.
Our objective is to manage risk through disciplined security selection, sector diversification, exposure management, and adherence to risk guidelines.
Our investment process defines a margin of safety on each position, a hurdle which rises commensurate to the risk based on liquidity and volatility.
We generally maintain net exposure below 50%, avoid leverage, invest across a broad set of sectors, and remain disciplined with price targets and soft stop-losses.
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