Strategy: The North Tech Methodology
At North Tech Capital, we reject the “index-hugging” nature of traditional technology funds. Our strategy is built on the belief that superior risk-adjusted returns are generated through extreme concentration in businesses that own the critical infrastructure of the digital economy. We call these entities Sovereign Gatekeepers.
I. The Sovereign Gatekeeper Mandate
We do not speculate on “disruption”; we invest in dominance. Our proprietary process identifies a restricted universe of 15 U.S.-listed technology companies that act as the structural toll-booths of their respective industries.
A Sovereign Gatekeeper must meet three non-negotiable fundamental criteria:
- Infrastructure Moat: The business provides a mission-critical product or service that is functionally impossible to replace without systemic disruption.
- Pricing Authority: A demonstrated ability to maintain margins and pass on costs, regardless of the inflationary or macro environment.
- Cash-Flow Generosity: A relentless focus on Free Cash Flow (FCF) over “adjusted” earnings or speculative top-line growth.
II. Dual-Layer Execution Process
Our investment decisions are driven by a fusion of fundamental quality and technical precision. Every position must pass through a two-stage filter:
1. Fundamental Quality Filter (The “What”)
We employ a rigorous screening process focused on capital efficiency. We target companies with high Returns on Invested Capital (ROIC), robust net-cash balance sheets, and a proven track record of disciplined capital allocation. This defines our investable universe.
2. Technical Anchoring (The “When”)
Once a candidate passes our fundamental screen, we utilize multi-timeframe technical analysis to identify optimal entry and exit points. We do not chase price action; we use price discovery to anchor our fundamental conviction, ensuring capital is deployed when the technical setup aligns with our long-term intrinsic value assessment.
III. Valuation Anchoring & Position Sizing
Our most significant point of differentiation is our Concentration Strategy. While traditional funds are often capped at 5% or 10% per position, the North Tech 15 mandate allows for high-conviction weightings of up to 35% in a single entity.
- Value-Driven Sizing: Position sizing is a direct function of the delta between a company’s current market price and our assessment of its intrinsic value.
- The Exit Discipline: We maintain a “no-ego” liquidation framework. If a company’s fundamental thesis is compromised or the technical trend invalidates our entry rationale, the position is liquidated immediately to protect partner capital.
IV. Institutional Infrastructure
North Tech Capital operates with the operational hygiene of a professional asset manager. By using an exchange-listed framework (AMC), we aim to provide professional partners with:
- Intraday Liquidity: Transparent pricing and intraday execution via primary European venues like the Vienna MTF or Stuttgart (EUWAX).
- Structural Security: Assets are intended to be held in a collateralised, segregated Special Purpose Vehicle (SPV) pledged to an independent third-party trustee to mitigate issuer credit risk.
- Full Transparency: A verified audit trail of every strategy rebalance, accessible through our monthly Gated Strategy Reports.
Professional Investor Access
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