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 from December 2023 through September 2026. Past performance is not indicative of future results. BM = Index comprised of 50% S&P 500 TR and 50% SSO (2x levered S&P 500).
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 74% of the fund. We target dominant companies in specialized, often-overlooked sectors, with 81% of the portfolio in three themes: niche industrials and electrification (34%), including MEP services and grid equipment; proprietary data and vertical software (29%); and specialty finance and market infrastructure (18%), such as non-commoditized property & casualty insurers and exchanges.
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 0.35x), 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 74% 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, proprietary data and vertical software, 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. Measured on the same aggregate basis as the index itself, our holdings grow faster, earn higher margins and returns on capital, carry less debt and convert more of their earnings into cash than the S&P 500.
| Metric | Eaglestone | S&P 500 |
|---|---|---|
| Operating Income Growth | 36.0% | 25.2% |
| Gross Margin | 44.4% | 39.1% |
| Operating Margin | 22.1% | 16.7% |
| Insider Ownership | 15.5% | 5.8% |
| Return on Capital Employed | 16.5% | 9.3% |
| Long-Term Debt / Equity | 0.35x | 0.72x |
| Cash Conversion (FCF / Net Income) | 146.8% | 74.5% |
Updated October 2026. Portfolio metrics use the aggregate index method: each company’s results are counted in proportion to the portfolio’s ownership stake, just as the S&P 500 aggregate sums its constituents. Holdings as of 30 September 2026, weighted at 7 October 2026 prices. Company results cover the trailing twelve months to each company’s latest reported quarter (mostly 2Q2026). S&P 500 figures represent the aggregate index of current constituents.
Operating income is as reported, excluding non-cash derivative fair-value marks where material and one-time items relating to prior periods, per company SEC filings; the same rule is applied to the portfolio and the index.
Definitions: return on capital employed = operating income / (total assets − current liabilities); long-term debt / equity uses total equity including minority interests; cash conversion = free cash flow (operating cash flow less capital expenditure) / net income; insider ownership = closely held shares (officers, directors, founders and other strategic holders), using SEC filings where data providers omit controlling stakes.
Sources: company filings via Financial Modeling Prep and SEC EDGAR; Eaglestone calculations. Holdings and metrics change over time and are not indicative of future results.
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.
Please certify your accredited investor status.
Your tear sheet download should begin automatically. If it does not, use the button below. Fred will follow up with a personal introduction and an offer to schedule a call.
Download Tear SheetThis 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.
Operating income across our holdings grew 36.0% over the past year, versus 25.2% for the index. We measure growth at the operating line because earnings per share can be swung by non-operating items such as gains on equity stakes or one-off charges.
Our companies earn higher gross and operating margins and a 16.5% return on capital employed, against 9.3% for the index, while carrying about half its long-term debt relative to equity.
Their free cash flow exceeds reported net income (146.8% cash conversion vs. 74.5%), and insiders own 15.5% of our companies, more than two and a half times the S&P 500’s 5.8%.