We look for opportunities where the potential reward is out of proportion to the risk taken.
An asymmetric opportunity is one where being right pays far more than being wrong costs. We spend most of our time looking for them.
Asymmetry usually comes from understanding a situation better than its price suggests, from being able to wait longer than other holders, or from structure.
It is not the same as a high return. A large possible gain with an equally large possible loss is not asymmetric.
Before sizing a position we write down what has to be true for it to work and what happens if it does not.
We welcome conversations with founders, investors, operators, and counterparties working on interesting opportunities.
