Virtues that guide investment approach.
Lucus is an investment management firm that seeks to generate sustainable high risk-adjusted returns for its partners.
It is our mission to strive to create a dynamic culture that develops resilient, differentiated, and high-performing investment strategies that are aligned with our partners’ interests.
Adaptability is the ability to adjust oneself readily to different conditions.
At Lucus we recognize that some things in the world stay the same, but many things change. In order to achieve our goal of generating high risk-adjusted returns over long periods of time, we must be able to evolve ourselves, strategies, and firm with the inevitable future transformations in our environment.
Clarity is the capability to think and communicate clearly.
We are bombarded with more information and stimuli than we are able to process entirely. The limitless permutations of investment strategies requires that we effectively isolate the promising approaches. We must balance focusing on the intricate details of the problem by freeing our minds to explore alternate solutions and abstract away the minutiae to identify the essential elements.
Humility is the recognition of limited understanding and control of external forces.
No matter how diligently we research and how devoted we are to Lucus’ Mission, we will never understand everything. There will always be people better-informed and wiser in certain areas than us. We risk alienating those people and losing out on their potential value to our partners if we do not exercise humility. The art of investing is one of utmost uncertainty. Independent of our results, particularly over shorter periods of time, we must recognize the role of luck and the lack of control that we have in many aspects of our business.
Industry is the energetic devotion to a task or an endeavor.
No one is born with an inherent understanding of how asset prices behave or how businesses evolve and improve. These things are learned (if ever) through hard work and extensive experiences. We all have a limited amount of energy and resources. In order to make the most of our limited inputs, we diligently apply ourselves to the task of creating a self-sustaining institution that consistently generates high risk- adjusted returns for our partners. Only through our labors do we gain the satisfaction of our achievements.
Ingenuity is the quality of being clever, skillful, inventive, or creative in conceptualization or design.
Many “smart” people have created numerous investment strategies. We must be humble as we attempt to create new approaches to investing and we cannot be wholly dependent on “intelligence” to get us there. We must be clever and original in our thinking of how assets are priced and how to exploit or create exploitable mispricings. There is something profound to the human spirit in the "Eureka!" moments, and we strive to achieve as many of those spirit-uplifting moments as possible.
Introspection is the observation or examination of one’s own mental processes and states of mind.
In order to identify areas of improvement and plans to address those deficiencies, we take the time to observe ourselves and our environment. One of the defining characteristics (and evolutionary advantages) of humans is our ability to think in an observant manner.
Our Investment Philosophy
In order to generate sustainable high risk-adjusted returns, we concentrate our specific skill sets into specialized approaches that allow us to maximize our productivity and probability of success and efficiency.