Olympus Wealth Management
The majority of our investments are made in small publicly traded companies within the United States. While There are many other investment opportunities outside of this criteria we find that many of the best investments are made in these smaller companies for a few main reasons.
When thinking of the stock market most people will refer to the largest 500 companies on the stock exchange, frequently called the S&P 500. While these 500 companies make up most of the stock market's total capitalization they in fact represent a very small percentage of the total number of publicly traded companies.
In total, there are over 15,000 publicly traded companies in the United States, many of which are small-cap companies. Because these companies are so small they frequently go overlooked by the analysts on Wall Street which therefore increases the chances of their stock being undervalued.
By consistently looking through these small cap companies we aim to invest in ones selling for the lowest price in relation to value. This sometimes means purchasing stock for 30-40% of what they are worth. Once we do come across these undervalued companies we try to purchase as much of their stock as we can.
While the partnership occasionally partakes in other investment strategies, such as event arbitrage, we are mainly focused on investing in these undervalued small cap equities.