OWL's Low Turnover Club

This week’s newsletter highlights public equity managers with low portfolio turnover (below 25%/year), showcasing one of OWL’s many unique search tools and filters to identify specific types of managers. We filtered our database of thousands of managers by turnover rate, AUM, and number of positions to isolate a group of investors with a long-term, concentrated approach. In Friday’s customer newsletter, we shared a list of 30 managers with those characteristics, and have included a sample of those below.

Please reach out if you’re interested in learning more about how to use OWL’s search tools to filter thousands of managers by using our performance estimates, strategy tags, concentration levels, turnover, and more.

AltaRock Partners

AltaRock Partners is a concentrated, quality-focused fund launched by Mark Massey in 2002. Prior to AltaRock, Massey spent time as an analyst at Fidelity, ran a firm called Eureka Capital, and spent a few years managing internal capital at Massey Capital Management. Scott Bradford was also a key early employee at AltaRock, serving as an analyst beginning in 2002 and a managing member until 2017. Bradford is now a partner and portfolio manager at East Coast Asset Management.

Since OWL started tracking its positions in 2015, AltaRock’s disclosed long positions have meaningfully outperformed the benchmarks:

AltaRock now manages more than $5 billion, and more than half of the fund’s assets (~$3 billion) are held in a Brown Brothers Harriman fund. Publicly available materials from 12/31/23 note that the BBH AltaRock fund had annualized returns since 2015 of 15.3% vs. the S&P at 12% over the same time period, and describe the strategy below:

“The team deems superior businesses to include the following: an unusually strong and durable competitive position – the key to generating the high returns on capital that it insists upon; management teams it trusts to allocate capital in the shareholders’ interests; and the ability to grow for a very long time. AltaRock will only purchase these when it can reasonably expect a 15% gross (12.5% net) return over at least the next 10 years.”

AltaRock runs a concentrated portfolio, with nearly 90% of the disclosed portfolio currently held in the top 5 stocks: Amazon, Microsoft, TransDigm, Moody’s, and Mastercard. According to OWL estimates, the fund has generated more than $1.5 billion in profits on TransDigm alone, and has only lost money on one position (Liberty Global) since 2015.

Massey and his wife reportedly bought a $46 million house in Palm Beach in 2022, following several other Palm Beach real estate transactions in prior years. Soon, all OWL users will be alerted anytime a manager that they follow changes or adds an office address. In this case, the firm disclosed its new West Palm Beach office in mid-2024. The screenshot below is from our internal system, and this feature will be available to our users very soon!

Other News/Events

• New Investment Firm Sees Untapped Alpha Opportunity in Decarbonization

• Vinci Compass acquires Brazilian hedge fund manager Verde

• Gulf heirs drive demand for hedge funds, private credit and crypto

• Big hedge funds' smaller strategies are outperforming their flagships so far in 2025

• The latest additions to the Tiger Cub family: A new $1 billion Coatue spin-out and Stephen Mandel's son's new fund

• Callodine Group Announces Acquisition of Corrum Capital Management

• The Mysterious Billionaire Boss at Jane Street Smashing Trading Records

• Chris Hohn’s TCI Soars on Aerospace Bets, Extends Lead Over S&P With September Gain

• Bush Foundation’s New Investment Head Eyes Emerging Markets and India for Growth

• Millennium credit PM departs to launch new hedge fund 

• Stanford Reports 14.3% FY25 Return

• University of Wisconsin Reports 16.2% FY Return

• United Nations Hiring Assistant Investment Officer

• University of Michigan Hiring Investment Analyst

   

About Old Well Labs

OWL is an intelligence platform built for allocators, by allocators. Leading endowments, foundations, and family offices use the system to find, monitor, and connect with thousands of fund managers globally. OWL's analytics engine has collected over one billion data points from 65 countries. We make it easy for allocators to find and track information about the managers they care about – not just positions but also performance analytics, people data, business information, and details about the manager investments of other allocators.

Disclaimers

Returns represent the return on invested capital of publicly disclosed long positions, as calculated by OWL. Actual returns may vary based on a number of factors, including (but not limited to) undisclosed positions, short exposure, non-equity holdings, cash holdings, and lagged disclosure of positions.

This newsletter and the material on the Old Well Labs platform are for informational purposes only and should not be considered investment advice or a recommendation of any particular security, manager, or strategy. Old Well Labs shall not be liable for any investment gain or loss that may occur from the use of this material. No part of this material may be reproduced in any form or used in any publication without express written permission from Old Well Labs.