Hedge Fund
Eldred Rock Beacon Fund is a curated investment partnership seeking concentrated compounding of capital
What is Eldred Rock Beacon Fund?
A curated investment partnership seeking concentrated compounding of capital
Quality
Management Alignment
Value
Existing competitive advantages drive economic profits and form our margin of safety
Owner/operators compound capital by optimal capital decisions and tribal leadership
Undiscovered businesses, hidden options or misjudged timelines offer valuation leverage
"“Deliver to the world what you would buy if you were on the other end”"
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- Charlie Munger
ELDRED ROCK BEACON FUND
At A Glance
We are a value investor partnership seeking quality businesses, managed by
owner-operators, that will deliver valuation-leveraged, compounding returns
Performance based fee
Concentration - 7 to 15 holdings
Low turnover, tax optimized
Small fund size
Seeking opportunities without constraints on geography, market cap, liquidity, or security type
Investment Process
Process builds capital on the foundation of our philosophy
Rational Patience
The aggregate patience of our investment partners is a competitive advantage
Process Driven Skill
Qualitative, forward-looking knowledge & checklist constrained decisions
Endurance
Internalizing ideas brings a business owner mindset enabling time horizon arbitrage
Stefan F. Gräter, PhD, CFA
Portfolio Manager
BIOGRAPHY
Dr. Grater is a co-founder of Eldred Rock Partners and serves as the portfolio manager for the Fund’s investment strategy. Mr. Grater is also the portfolio manager for the Eldred Rock U.S. Value investment strategy and has been since the strategy’s inception in 2005. Mr. Grater transferred the practice of engineering design using safety factors to the discipline of margin of safety in value investing. He has built a top quartile, benchmark beating, track record employing high conviction, concentrated, value investing in quality businesses. Prior to forming Eldred Rock Partners, Mr. Grater was a managing director at Avalon Advisors and a partner at Matterhorn Capital Management where he served as the portfolio manager for value strategies at both firms. The Eldred Rock Partners team has built an institutional asset management firm offering active equity investment strategies with downside protection and attractive risk adjusted returns in a client-centered culture committed to integrity and responsible stewardship.
Education
• The University of Texas at Austin, Ph.D. in Civil Engineering (1996)
• The University of Texas at Austin, M.S. in Transportation Engineering
(1994)
• University of Pretoria, South Africa, B. Eng. Civil Engineering (1989)