Mach 100 LP is a global small cap and micro cap, concentrated, Fund. When Steve and I started our first hedge fund in 1994, our hedge fund’s portfolio was almost exclusively U.S. companies with an occasional Canadian company, that usually traded in the U.S. Twenty Four years later, Mach 100 LP, with a very similar strategy to our successful, original fund, DNB Fund Partners LP, is global. Because of all of the technological advancements in Fintech (financial technology), we have the ability to trade almost any [read – Any] market in the world, with direct and real time access those international markets; without the need to rely on American Depository Receipts (ADR’s) or brokerage intermediaries. We possess just as much news, information, analytics, as international investors in their local markets; and sometimes, due to the extremely sophisticated analytics and trading platforms that we utilize, we have more information than they do. As one might surmise, advantages are a function of information via research, analytics and trading technology (access and execution). However, the most important utilization of any information and potential advantage [we call it Edge] is a function of our judgment (how we think and our decision making). In terms of speaking with companies located one or two oceans away, they are generally delighted to have interest from U.S. investors.
Today, we have positions in international companies located in Finland, Italy, Canada and Israel. Some of these companies trade on U.S. exchanges and markets and some only trade on their respective foreign exchanges. Interestingly enough, we started researching a company located in Oslo, Norway. The Company just relocated its main manufacturing operations to San Jose, California with its headquarters still located in Oslo. While it theoretically trades in the U.S. on the Over The Counter market, there is practically speaking, no trading volume in this security on the Over The Counter market; In other words, in the U.S. it cannot be bought or sold. In contrast, on the Oslo, Norway market, trading volume is heavy. Today for example it traded almost 10 million shares. Accordingly, if you want to invest or trade this company, you need to trade it on the Oslo, Norway exchange. Whether its Amazon delivering packages to 3rd world countries or investors trading international markets with direct access in real time, the world has definitely become economically flat.
David N. Baker and Steven Shum