Xponent Tribe PMS

The key driver of returns in the compounding equation is the exponent '^n'. Time does the heavy lifting of returns, and therefore focusing on longevity is the secret to wealth creation.

At Xponent Tribe, the goal is to deliver sustained value through long-term thinking and a rigorous portfolio construction process centered around resilient companies.

Core Principles:

1. Sustainably maximize spread over cost of capital - Focus on high ROCE relative to WACC - Durable advantages such as brand perception, network effects, switching costs, economies of scale, and intellectual property 2. Maximize time horizon for reinvestment - Extend duration of economic profit compounding - Structural demand drivers and expanding TAM - Low industry rate of change 3. Right captain for the ship - Management teams optimizing spread and longevity - Strong governance and capital allocation - Adaptability and rational decision making