A high-conviction equity partnership investing in capital-light U.S. compounders with durable competitive advantages, shareholder-aligned management, and superior returns on capital employed.
Performance figures are net of fees since December 2023. Past performance is not indicative of future results. Through March 2, 2026.
Market volatility during the 2008 Financial Crisis forced the indiscriminate selling of even the highest quality companies — but ultimately their share prices recovered. Eaglestone was built to leverage that principle: identify exceptional businesses, invest with conviction, and let compounding do the work.
Fred brings a 30-year career spanning law, private equity, and investment banking to Eaglestone Capital. His legal training sharpens the analytical framework applied to every position, while his capital markets experience informs the fund's approach to risk management and portfolio construction.
Fred's own capital represents the single largest investment in the fund — a structure deliberately designed to ensure complete alignment between the manager and limited partners.
Eaglestone's investment process is built on three interconnected domains: the business fundamentals (high-quality companies generating sustainably high returns on capital), the management stewards (shareholder-aligned leadership skilled in capital allocation), and the market technicals (exploiting periodic dislocations between underlying value and quoted share prices).
The portfolio is deliberately concentrated in 20–30 long positions, with the top ten holdings representing over 75% of the fund. We target dominant companies in specialized, often-overlooked sectors — niche industrials like MEP services and building products distribution (35% of portfolio), and specialty finance including non-commoditized property & casualty insurance (25%).
We systematically apply portfolio-level leverage to amplify returns from conservatively financed businesses, targeting gross market exposure of 1.5x NAV. Because we require low corporate debt at the company level (average long-term debt/equity of just 0.13x), the leverage is applied to inherently stable, cash-generative assets.
Significant, long-term investments in a select number of "best ideas." Over-diversification leads to mediocrity — our top ten holdings represent over 75% of the portfolio.
Selection is anchored in identifying growing businesses with superior economics — high and sustainable ROCE, strong predictable cash flow, and expanding margins.
We target dominant companies in specialized sectors — niche industrials and specialty finance — where expertise and scale create durable competitive advantages.
We employ a "leverage on quality" approach, using portfolio-level margin at 1.5x NAV to amplify returns from carefully selected, conservatively financed companies.
Eaglestone selects growing, capital-efficient businesses with shareholder-friendly management teams. The aggregate quality of our holdings consistently exceeds the S&P 500 across fundamentals that matter.
| Metric | Eaglestone | S&P 500 |
|---|---|---|
| EPS Growth | 31.3% | 20.3% |
| Gross Margin | 51.8% | 38.1% |
| Operating Margin | 20.9% | 15.6% |
| Insider Ownership | 8.2% | 6.4% |
| Return on Capital Employed | 19.3% | 8.5% |
| Long-Term Debt / Equity | 0.13x | 0.74x |
| Cash Conversion (FCF / Net Income) | 56% | 80% |
Portfolio metrics calculated using the aggregate index method. As reported 3Q2025. S&P 500 figures represent the aggregate index.
Our conviction comes from depth of research, not breadth of coverage. We study the competitive dynamics, supply chains, and unit economics of every business we own. When we size a position, it reflects hundreds of hours of work — not a screen or a tip.
We communicate candidly with our investors through quarterly letters that detail our thinking, acknowledge our mistakes, and explain our positioning. Transparency is not a marketing choice; it's an obligation to our partners.
Read Our Latest Investor LetterWe invest in a small number of capital-light compounders — exceptional U.S. companies that generate sustainably high returns on the capital they employ. We partner with shareholder-aligned leadership who are skilled in capital allocation: reinvesting for growth while returning excess capital to shareholders.
— From the Eaglestone Capital Investment Process
Eaglestone was founded as the primary vehicle for our own family's capital. We are focused on protecting and compounding wealth for individual families over decades. The fund is limited to 100 investors and will never exceed $100 million in AUM — ensuring the manager's ownership stake continues to grow alongside partners.
Above a 6% annualized hurdle, subject to full loss carryforward. No lock-up — full liquidity at any time.
Reduced performance allocation in exchange for a 12-month early-exit fee. Rewards investors who stay through volatility.
The best economics for long-term partners. Reduced management and performance fees in exchange for a 24-month early-exit fee.
Receive our fund fact sheet, most recent investor letter, and a personal introduction from Fred.
Your fund fact sheet is on its way. Fred will follow up within 24 hours with a personal introduction and offer to schedule a call.
This is not an offer to sell or solicitation to buy any securities. Any offer will be made only pursuant to the Confidential Private Placement Memorandum. Minimum investment: US$200,000. Limited to accredited investors. Past performance is not indicative of future results.