About Otter Creek Advisors
- Manage two investment strategies focused on U.S. listed securities
- Absolute return focused long/short strategy in a liquid alternative mutual fund
- Long only, high active share mid‐cap equity focused strategy
Objective
- Compound investor wealth over time with below average risk of permanent capital loss by investing in high‐ quality small and medium sized companies with favorable long‐term outlooks
Why Otter Creek?
- Investment boutique with independent & differentiated views
- Deep fundamental research
- Focus on best ideas
TIMELINE
With over 30 years of investment pedigree, Otter Creek is a boutique investment firm that is focused on fundamentally based, value‐oriented investing. The long history of Otter creek is entering a new chapter of ETF investing with the launch of the Otter Creek ETF
1991
Otter Creek Management Inc. founded by Keith Long to manage a long/short equity hedge fund, Otter Creek Partners I, LP
2011
Tyler Walling joined Otter Creek Management as an investment professional
2013
(OTTRX) Long/Short Opportunity Fund was launched on 12/30/2013 by Otter Creek Management
2014
Otter Creek Advisors, LLC was formed to provide equity ownership to the next generation
2016
Cory Reed, CFA joined Otter Creek Advisors as an investment professional
2020
Otter Creek Advisors, LLC Launches the Otter Creek Mid Cap Focused Strategy
2024
Expected ETF Launch: Otter Creek Focused Strategy
Potential future
product
launches
Team
INVESTMENTS
MARKETING AND ADMINISTRATIVE PROFESSIONALS
Core Principles
FOCUS
- Portfolio concentration allows Otter Creek to leverage its conviction
- Otter Creek spends more time researching each portfolio company than a more diversified manager
PROCESS
- Repeatable investment process - Otter Creek applies the same approach year after year
- Defined investment universe allows us to increase our probabilities of long-term success
PATIENCE
- Otter Creek’s knowledge of businesses, industries and management teams spans years, not quarters.
- Portfolio turnover < 25% - buy and hold investing allows our companies to compound over time
01
Initial Screen
US Listed Securities
Eliminate approximately two thirds of the universe focusing on four primary areas:
- Sustainable competitive advantage
- Market leaders with secular growth
- Proven management team
- Above average financial profile
- Small and Mid Cap bias
02
Deep Dive Analysis
~150 High Quality Companies
Apply Core Investment Criteria:
- Above average earnings growth
- Strong cash flow generation
- Return on Equity > 10%
- Prudent leverage profile
- Opportunities for reinvestment
- Favorable capital allocation
03
Valuation and Rank
~30‐50 Portfolio Candidates
Value & Rank Portfolio Candidates:
- Narrow list to ~25 names that have sustainable growth outlook and
- valuation supports double‐digit IRRs (internal rates of return).
04
Monitor & Update
Continuous Monitoring
- Continuously evaluate optimal names and positioning.
- Regularly update thesis with incremental information.
- Evaluate portfolio level risk and Return metrics