About us

Tsai Capital Corporation is a global equity manager headquartered in New York City. Through original, in-depth research that digs deep into a company’s operations, Tsai Capital seeks long-term investments in businesses we believe are high-quality, growth companies that offer significant upside potential and a margin of safety at the time of purchase. The company was founded in 1997 by Christopher Tsai, President and Chief Investment Officer.

Tsai Capital is an SEC-registered investment adviser.

Why Tsai Capital?

Why Tsai Capital?

  • 20-years operating history
  • Extensive experience and network of our Chief Investment Officer
  • Focus on high-quality, growth companies and margin of safety
  • Boutique firm offering high-touch customer service
Key Points

Key Points

  • Long-term investment approach
  • Disciplined and consistent approach to managing investment portfolios
  • Capital managed primarily for individuals, corporations and trusts
  • After-tax focus
  • Scalable capacity
  • Proprietary research and global investment approach
Investment Philosophy

Investment Philosophy

We believe in minimizing the risk of capital loss and maximizing return. In an attempt to accomplish these objectives, Tsai Capital invests in businesses we believe are high-quality, growth companies that offer significant upside potential and a margin of safety at the time of purchase.

Because truly outstanding businesses are not often available at attractive prices, we seek to hold investments for the long-term, provided their fundamental and qualitative characteristics remain favorable.

We think that a company’s share price will follow earnings over the long-term. We therefore focus on identifying companies with fundamental characteristics that often result in generating above average profit growth.

We place little emphasis on forecasting the direction of the stock market or the economy because we think short-term market gyrations do not affect the long-term prospects of an investment.

Objectives

Objectives

Tsai Capital has two primary investment objectives: to preserve capital and to capture above average rates of return.

To accomplish these objectives, we focus on businesses with solid fundamentals and invest when we think the market price represents a significant discount to intrinsic value. We view purchasing at a discount as one of the most effective means of protecting capital. Moreover, when executed correctly, an attractive purchase price can increase the rate of return on the investment.

Strategy

Strategy

We invest for the long term and view each investment as a partial ownership interest in a business. Moreover, the benefits of compounding capital over a long period of time and in a tax-deferred manner can be substantial.

While many investment managers buy and sell on a regular basis, we prefer to hold our investments for as long as their fundamental and qualitative characteristics remain favorable.

We favor investing in companies with:

  • High rates of return on equity and capital
  • Strong free cash flow
  • A competitive advantage
  • Dominant market share
  • Above average profit margins
Moreover, unlike many other investment managers, we prefer to add to a position at lower prices. If we liked a company at $50 a share, we would welcome the opportunity to buy more at $45, provided the fundamentals have not changed.
Portfolio Construction

Portfolio Construction

We construct portfolios that are diversified, but not overly so. Investments tend to be in large, U.S. exchange-listed growth companies with global operations. We also invest in smaller companies and in businesses based outside the United States.

Sell Discipline

Sell Discipline

Disciplined selling is critical. Therefore, we sell investments when either of the following conditions are met:

  • Fundamentals have deteriorated, or are expected to deteriorate
  • A significantly better opportunity is identified. In this case, the risk relating to the new investment must be lower than, or comparable to, the initial investment.
Research And Investment Process

Research And Investment Process

Most all of our research is proprietary and we rely upon the extensive network and experience of our Chief Investment Officer to source potential investments and to ultimately reach an investment decision.

We use a five-step, bottom-up methodology to identify, invest and monitor our investments.

Step 1: Identification

We think that through original, in-depth research that digs deep into a company’s operations an investor can identify undervalued growth stock investment opportunity that others have missed, and therefore mispriced.

We use a bottom-up approach to identify potential investments.

Our analysis includes a thorough review of a company’s fundamentals: composition of assets and liabilities, debt in relation to equity, return on equity, return on assets, profit margin, cash flow, market share, and the quality and experience of the management team.

We prefer to invest in companies that, over a number of years, produce consistent results.

Step 2: Research and Analysis

Our research and analysis include:
  • Careful assessment of the company and industry
  • Examination and analysis of financial and technical documents
  • Discussion with competitors, customers and suppliers
  • Discussion with short sellers

Step 3: Valuation

We use proprietary research and analysis and a deep understanding of a company’s operations to determine intrinsic value. Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life.

We then compare a company’s intrinsic value with its market value. We invest when we believe the market price represents a significant discount to intrinsic value. In other words, we seek a margin of safety with each investment.

If an investment opportunity does not meet our margin of safety test, we will pass, no matter how compelling the opportunity may appear.

Step 4: Investment Decision and Asset Allocation

A decision whether or not to make an investment in the company is made. If we decide to invest, an asset allocation policy is developed. Our asset allocation policy is shaped by two primary factors: risk and the estimated rate of return on the investment.

If we would like to make an investment at a lower price, we exercise patience by setting a target entry level and waiting for the opportunity to make a timely, yet thoroughly researched and carefully considered investment decision.

Step 5: Continuous Monitoring

We routinely monitor the various fundamental factors that affect the value of both existing and potential investments. This enables us to remain informed about any material developments and to make the immediate, yet well-informed decisions required.

Products

Products

Our investment portfolios are constructed to serve a broad range of investors including corporations, foundations, individuals and trusts. We offer the following two products:

Tsai Capital Separately Managed Accounts (SMAs)

Our separately managed accounts (SMAs) are constructed to serve a broad range of investors including corporations, foundations, individuals and trusts. We offer the following two products:

Tsai Capital Growth Equity Strategy

Tsai Capital Growth Equity Strategy is the firm’s longest running strategy. It is an SMA product that adheres to a long-only, global, large-cap equity approach. The investment objective of this strategy is the long-term growth of capital.

Tsai Capital Customizable Managed Accounts

Tsai Capital Customizable Managed Accounts is an SMA product that can be customized around a client’s specific needs and objectives. For example, this product can incorporate fixed income securities or can be managed without exposure to certain types of businesses.

Long/Short Global Equity Fund

Tsai Capital’s long/short global equity fund is an investment partnership for qualified investors.

Services

Services

Reporting

Tsai Capital has retained Black Diamond Performance Reporting, LLC, a sophisticated, cloud-based portfolio management and reporting platform. We can provide SMA clients with the specific information that they and their tax professionals require. Moreover, SMA clients receive monthly statements directly from the brokerage firm at which their assets are held in custody and therefore have high transparency into their underlying investments.

Client Meetings

Most of our clients prefer to have semi-annual or annual meetings. However, we are also available to answer questions or meet on a more frequent basis.

Compliance

Compliance

Tsai Capital has retained D.E. Scott & Associates, LLC, a regulatory consulting practice specializing in SEC compliance requirements for regulated investment advisers and mutual funds. Tsai Capital has worked closely with D.E. Scott & Associates, LLC since 2006.

Who We Are

People

Christopher Tsai, President and Chief Investment Officer

Christopher Tsai

Christopher Tsai is President and Chief Investment Officer of Tsai Capital Corporation, a global equity manager headquartered in New York City. He founded the company in 1997 and serves as Chairperson of the firm’s Advisory Committee. Tsai Capital is an SEC-registered investment adviser.

Mr. Tsai seeks long-term investments in businesses Tsai Capital believes are high-quality, growth companies that offer significant upside potential and a margin of safety at the time of purchase. His research-intensive, fundamental and long-term approach to investing has created significant wealth for his investors.

Through Tsai Ventures, the seed and early stage venture capital arm of Tsai Capital Corporation, Mr. Tsai invests in private companies and helps to build relationships for entrepreneurs.

In 2015, Mr. Tsai led a $3 million Series A Preferred Stock financing for untapt inc., a New York-based FinTech company.

In 2016, Facebook, Inc. announced that it was acquiring CrowdTangle, Inc., a Tsai Ventures portfolio company.

Mr. Tsai is a member of the board of directors of untapt inc. and is a member of the National Association of Corporate Directors and the New York Society of Security Analysts.

Mr. Tsai was retained by Paul Hastings LLP, a leading international law firm, to provide expert assistance with the analysis of publicly-traded equity securities.

Mr. Tsai has been profiled in numerous financial publications including Barron’s, Bloomberg Briefs, Business Insider, Financial Planning, Investment Advisor Magazine, Private Asset Management and The Wall Street Transcript. He has been interviewed on Bloomberg Radio, China Money Network, Fox Business Network and The Street.com TV.

Mr. Tsai has contributed to Investment & Pensions Europe about investing in art as an alternative asset class. He is also the author of “Back Door to China”, a Worth Magazine article about investing in contemporary Chinese art, and a Fundweb article about the importance of portfolio exposure to Asia’s growing middle class.

Prior to forming Tsai Capital, Mr. Tsai was an equity research analyst at Bear, Stearns & Co. Inc., John A. Levin & Co., Inc., and Gabelli Asset Management. He began his career in finance at a young age, working for his late father, distinguished financier, fund manager and philanthropist Gerald Tsai, Jr., analyzing investment opportunities for the Tsai family and family foundation.

Mr. Tsai has been a benefactor of numerous museums and cultural institutions, both nationally and internationally, including the Hirshhorn Museum and Sculpture Garden, The Metropolitan Museum of Art, the Serpentine Gallery Pavilion, the Solomon R. Guggenheim Museum and the World Monuments Fund, where he is a member of the International Council.

Mr. Tsai is the world’s foremost collector of works by contemporary artist Ai Weiwei. He has been profiled in Art+Auction, ForbesLife, The Huffington Post, Larry’s List, The New York Times, Private Air and Sotheby’s Magazine.

Through the Stockamp Tsai Collection, Mr. Tsai contributes artwork to many of the world’s most respected museums including the Metropolitan Museum of Art in New York, the National Gallery of Victoria in Melbourne, and the Victoria and Albert Museum in London.

Mr. Tsai received a Bachelor of Arts degree in philosophy and international politics from Middlebury College, where he is a member of the Middlebury College Arts Council and previously served as a Young Alumni Advisor.

Matthew J. Michel, Advisory Committee

Mr. Michel brings 15 years’ experience in the financial services industry where he has held roles of increasing responsibility at MassMutual, Merrill Lynch/BAML, and currently as Vice President of Stevens & Lee/Griffin, a platform of professional services businesses consisting of an AmLaw 200 law firm, a leading middle market investment bank, a government affairs consulting practice, a global private equity fundraising business, as well as several other consulting business units.

Mr. Michel has originated in excess of two billion dollars of capital markets transactions across industry verticals as both principal and agent.

Jason D. Papastavrou, Advisory Committee

Dr. Papastavrou is the founder and chief investment officer of ARIS Capital Management, LLC. Previously, Dr. Papastavrou was the founder and managing director of the Fund of Hedge Funds Strategies Group of Banc of America Capital Management (BACAP), president of BACAP Alternative Advisors, and a senior portfolio manager with Deutsche Asset Management. He was a tenured professor at Purdue University School of Industrial Engineering. Dr. Papastavrou holds a BS in mathematics and a MS and PhD in electrical engineering and computer science from the Massachusetts Institute of Technology. Dr. Papastavrou serves on the board of directors of United Rentals, Inc. (NYSE: URI) and XPO Logistics, Inc. (NYSE: XPO).

Kristofer Segerberg, Advisory Committee

Mr. Segerberg has over twenty years of equity investing experience with major investment firms, including nine years as equity long/short portfolio manager with Soros Fund Management LLC in New York. At Soros, Mr. Segerberg managed and co-managed large cap global equity portfolios using long/short equity strategies that combined bottoms-up micro fundamental value equity analysis with top-down macro-economic and technical considerations. Prior to Soros, Mr. Segerberg was a senior equity analyst/portfolio manager with John A. Levin & Co., Inc. in New York, managing and co-managing over $7 billion of value equity accounts pursuing value-with-a-catalyst equity strategies. Prior to Levin, Mr. Segerberg worked in mergers & acquisitions corporate advisory at Macquarie Bank in Sydney, Australia and in mergers & acquisitions and portfolio investments for Brierley Investments in California, USA.

Mr. Segerberg received an MBA degree from Harvard University (1989), supported by full scholarships awarded by the Wallenberg Foundation of Sweden and the Governor-General of New Zealand. Mr. Segerberg received a Bachelor of Science (Honors) degree, with First Class Honors, from the University of Auckland, New Zealand (1985), receiving the Senior Scholarship in Applied Mathematics and the Senior Prize in Pure Mathematics.

Mr. Segerberg is a dual national with Swedish (E.U.) and U.S. citizenships, and lived and grew up in Sweden, Finland, Australia, New Zealand and the United States.

Justin D. Soffer, Advisory Committee

Mr. Soffer has spent more than 15 years in Internet media. He helped launch and build an early online travel company called SkyAuction. He is currently Vice President of Marketing at Travelzoo® (NASDAQ: TZOO) and has served in a variety of roles at the company since 2003.

Mr. Soffer received a B.A. degree from Wesleyan University in Middletown, CT and an M.B.A. from Columbia University in New York.

News

News

Christopher Tsai Is Interviewed by Jill Malandrino, Global Markets Reporter of Nasdaq

Nasdaq, October 11, 2017
Important Disclosure

This interview presents the author’s present opinions reflecting certain companies, market conditions and economic factors. Any view expressed by Christopher Tsai during this interview is subject to change without notice. Nothing in this interview should be construed as investment advice or as a recommendation of any particular security, strategy or investment product. While the securities discussed by Mr. Tsai were held by certain Tsai Capital accounts as-of the date that the interview first aired, nothing in the interview shall be construed as representing the performance of any client account or any holding thereof. Actual performance for your specific account may be obtained upon request.

This interview contains forward looking projections. There is no guarantee that any forward looking performance or economic estimates will be realized or that any investment will be profitable. All investments include the risk of loss.

Past performance is no indication or guarantee of future performance and no representation or guarantee is being made as to the future investment performance of any investment or portfolio managed by Tsai Capital.

Christopher Tsai Is Interviewed by Jennifer Rogers of Yahoo Finance Live

Yahoo Finance Live, September 25, 2017

At Yum China, Growth Is on the Menu

Barron's, August 26, 2017

Tsai Capital Bets Starbucks Can Crack the China Code

Bloomberg, August 9, 2017

This Money Manager Aims to Hold on to Stocks for Decades

MarketWatch, June 13, 2017

Older News

Mead Johnson’s Formula

Barron’s, November 5, 2016

Viacom’s Hidden Value

Barron’s, January 30, 2016

China Crash Underscores Risk for US Investors

CNBC, July 8, 2015

Is the Party over in Shanghai?

Barron’s, June 1, 2015

Christopher Tsai: Taking the Financial World by Storm

Private Air Magazine, Spring 2015

Stocks Fall 1.3% on Oil and Currency News

Barron’s, January 16, 2015

Jobs Report Lifts Indexes to Record Highs

Barron’s, December 8, 2014

Christopher Tsai: Betting on Asian Consumer Names Like Jardine Matheson

China Money Network, April 30, 2014

Q&A: Tsai Capital Founder Sees Long-Term Opportunities in Emerging Markets

FINalternatives, April 10, 2014

Christopher Tsai is Interviewed for “Taking Stock,” Hosted by Pimm Fox and Carol Massar

Bloomberg Radio, March 5, 2014

Stocks Close Near Record Highs, Up 2%

Barron’s, February 15, 2014

On the Rise

Barron’s, April 29, 2013

Big Money Poll: Dow 16,000!

Barron’s, April 22, 2013

Second Generation

Welling@Weeden, December 16, 2011

Tsai Capital Debut Fund Targets Institutions

HFM Week, June 22, 2011

Tsai Capital Launches First Hedge Fund

FINalternatives, June 3, 2011

Distressed Consumer No Longer Boon for Wal-Mart

Reuters, May 18, 2010

Be Very Careful

Barron’s, April 26, 2010

Coke Can Float Your Boat

Barron’s, April 20, 2010

US-Consumers Could Upgrade Brands – Tsai Capital

Reuters, March 30, 2010

10 for the Money

Barron’s, November 23, 2009

Tales of the Tape: Buybacks Seen Bolstering Bed Bath & Beyond

Dow Jones News Wires, November 6, 2009

The Money Factory

Wealth Manager, April 30, 2007

A Good Name Above All

Barron’s, September 11, 2006

Happy Days – Part II

Barron’s, May 1, 2006

Focused on the Long Term

On Wall Street, October 2005

Twenty Undervalued Growth Stocks

Ticker Magazine, August 2005

The Tsai Method of Selection: Stick to the Fundamentals

The New York Sun, July 20, 2005

Catching up with…Christopher Tsai

Investment Advisor Magazine, June 2005

Stock Buybacks on Record Pace, A Bullish Indicator for Investors

Investor’s Business Daily, November 12, 2004

Fine Art of Art Investing

Investment & Pensions Europe, October 2004

Tsai Capital – The Next Generation

Financial Planning Magazine – SMA Adviser, September 17, 2004

Back Door to China

Worth Magazine, September 2004

A Methodical Man

Barron’s, August 23, 2004

Experts Say Fund Scandal Not Scaring Off Investors

The Palm Beach Post, November 18, 2003
Contact

Contact

Tsai Capital Corporation

590 Madison Avenue, 21st Floor
New York, NY 10022
Tel: +1 917 979 4821
Fax: +1 917 979 4849

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