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HIT CAPITALA HIT Investments strategy

The strategy

Find, rank, and evaluate overlooked businesses with outsized potential.

HIT Capital LLLP is a long-biased private fund with a goal to own a select few inexpensive, growing businesses that are undiscovered or out of favor.

Mandate

Primary and secondary work.

Primary

Quality, reasonably priced, growing micro-caps

The majority of the portfolio consists of companies with market values under $500M, listed around the world. Since 2021 the mandate combines decision quality, a value lens, and a high-quality momentum overlay. In-house software widens coverage; deep research decides what earns a position.

Secondary

Structurally Inefficient ETPs

The portfolio may utilize structurally inefficient exchange-traded products to complement the primary stock book. The incremental returns are derived from beta slippage, contango and cost drag.

Program + human execution

A wide universe, a narrow book.

The investment software uses global securities data, Python, and SQLite to gather, clean, and rank the universe. Stephen, with the help of AI, takes it the last mile to ownership.

  1. 01

    66,000+

    Global universe

    Securities gathered across 75 exchanges, with fundamentals and prices from 20+ data connections.

  2. 02

    43,000+

    Ranked universe

    Securities with sufficient data, cleaned and ranked on value and high-quality momentum.

  3. 03

    Brokerable

    Available to own

    The ranked list is cut to securities we can actually trade.

  4. 04

    Top ~2%

    Investigated

    Deep research initiated on the top-ranked businesses.

  5. 05

    Top ~0.2%

    Deeply scrutinized

    Modeled, interviewed, valued, and validated.

  6. 06

    10–20

    Core holdings

    A concentrated book: the names few have heard of and even fewer understand.

Universe

The process starts with more than 66,000 global securities. About 43,000 have sufficient data to rank. Holdings are typically companies with market values under $500 million. This is not a mandate, but a result of the process.

Concentration

The portfolio is built around a concentrated selection of underfollowed, mispriced businesses where we believe the market is underestimating the company’s long-term value. We typically hold 10–20 core positions, while diversifying thoughtfully across countries and industries to avoid unnecessary exposure to any single market or economic driver. The goal is not broad diversification for its own sake, but high-conviction ownership of businesses with significant upside relative to their risk.

Invest where
institutional capital can’t.

HIT Capital is available to qualified prospective investors who want to learn more about the strategy, research process, and current offering.

Request Investor Access

Materials are shared following an initial review.