North Tech Capital applies a concentrated, long-only approach to mega-cap technology investing.
The objective is long-term capital growth through disciplined ownership of businesses with durable competitive advantages and strong capital allocation profiles.
The framework rests on four core pillars.
1. Competitive Advantage
We prioritise businesses with defensible market positions supported by scale economics, switching costs, network effects, and pricing power. Structural durability is assessed across economic cycles rather than individual quarters.
2. Earnings Durability and Cash Flow
Emphasis is placed on sustainable earnings power and free cash flow resilience. Revenue growth alone is insufficient; cash generation quality and balance sheet strength are central to long-term compounding.
3. Valuation Discipline
Even high-quality businesses can become poor investments at excessive valuations. Portfolio construction incorporates margin of safety analysis and scenario-based return expectations.
4. Capital Allocation Integrity
Corporate reinvestment decisions, capital expenditure discipline, buyback activity, and balance sheet management are evaluated as core determinants of long-term shareholder value.
Portfolio Construction
The Global Tech 15 represents the public implementation of this framework.
The portfolio is intentionally concentrated, reflecting high conviction in durable businesses rather than broad thematic exposure.
Position sizing is deliberate and risk-aware.
Concentration is balanced with ongoing assessment of correlation, valuation compression risk, and structural impairment indicators.
Risk Philosophy
Volatility is not equated with permanent loss. Risk is defined as:
- Structural erosion of competitive advantage
- Capital misallocation
- Balance sheet deterioration
- Valuation excess without compensating return
Portfolio decisions are evaluated against these risks on a continual basis.
In Closing
North Tech Capital’s framework is designed to align disciplined capital allocation with durable business economics across evolving market conditions.