Tessellation Capital Management, LLC (‘TCM, LLC’) is a value oriented, event-driven hedge fund. We are ‘hybrid’ fund in that we deliberately take a later stage private equity approach to public market investing anywhere within the capital structure.
We are classic bottom-up, fundamentals oriented ‘dyed in the wool’ value investors at heart. At the core of our investment philosophy is an axiomatic belief in rigorous fundamental security analysis. We continually refine our investment process which culminates in an extensive private equity type quantitative and qualitative analysis before any investment is made into any particular investment situation in consideration.
We pride ourselves on a classic ‘generalist’ approach to investing in public market equities while simultaneously having very meticulous deep domain ‘circle of competence’ expertise across industry groups. This ‘breadth + depth’ approach is something unique to our fund and has been cultivated over the years. As generalists, we are industry agnostic, market capitalization agnostic, and relative value benchmark agnostic as well. We focus on individual companies and unique one-time corporate events one unique situation at a time, and do not attempt to predict macro-level variables such as interest rates, short-term directions of the overall general market (which we believe are based on changing sentiment and not actual tangible business fundamentals), and the like. Another way of explaining out approach is that ‘we focus on the micro-level details and invest bottom-up while being cognizant / aware top-down’.
Our investment approach / philosophy is very robust and versatile, allowing us to participate in public market investments regardless of the current direction of the overall markets (whether that means the market is trending upward, downward, or flat ‘sideways’ markets).
Tessellation Capital has a very fluid and flexible investment mandate to invest up and down the entire capital structure of a public market company, with a specialized focus in the following situations:
- Global equity event-driven / special situations
- Stressed and distressed credits (aka ‘distress debt’)
- General, classic bottom-up value investments
In addition to serving as the flagship event-driven hedge fund, Tessellation Capital Management, LLC also provides Outsourced Senior Investment Analyst services to middle market private equity financial sponsors, boutique value-oriented hedge funds, and Single-Family Offices (‘SFO’) and Multi-Family Offices (‘MFO’). We are able to provide senior level resources and expertise on an outsourced basis due to our expertise across multi-asset classes in both public as well as private market transactions.
TCM, LLC KEY STRENGTHS:
- Bottom-up, Fundamental Value Approach: Tessellation Capital’s investment process utilizes a later stage private equity approach to fundamental security analysis to evaluate businesses and invest when securities are believed to offer a significant ‘margin of safety’. We have deeply entrenched technical expertise and know-how – refined over a decade plus – which we believe cannot easily be duplicated and serve as a distinct advantage to our investment strategy. We consider ourselves ‘master craftsman’ in our fundamental oriented valuation approach to public market investing, always with a practitioner value investor’s perspective.
- Focus on under-followed companies and special situations: Tessellation Capital’s investment strategy focuses on companies that attract relatively little attention from market participants on special situations that often-time are considered by many market participants to be too complex or analytically challenging, resulting in large mispricing opportunities due to non-economic buying / selling pressures
- Long-term approach: Tessellation Capital seeks to maintain a patient, long-term oriented investment process, particularly in the face of near-term market uncertainty and volatility; accordingly, Tessellation Capital targets equally patient, like-minded investors. By extending our outlook and investment holding period horizon, we are able to benefit from ‘time arbitrage’ and participate in much less efficient and competitive segments of global investable public capital markets