Orange Capital Partners is a technology focused Hedge Fund trading in equities, currencies and commodities. Since inception in March 2008 the fund has delivered a cumulative annual average return of 15,7% net of fees and commissions.
Create wealth by investing in fundamentally new concepts and engineering practices with large impact
Our strategy is based on principles derived from four books
1. Zero to One by Peter Thiel
2. The Innovation Stack by Jim McKelvey
3. The Innovator's Dilemma by Clayton Christensen
4. The Beginning of Infinity by David Deutsch
Introduction to Orange Capital Partners presentation
Our focus is on autonomous driving technology for cars. We expect self driving cars to be the catalyst for rapid innovation in artificial intelligence.
See our presentation on AI and robots
When the product builds on itself, returns are much higher
As fund managers we are in charge of deploying capital to projects with high expected returns. It is a common belief that people like us are numbers driven and focus on financial returns. That is true. It is our job to make money. We owe it to our investors to grow their assets and increase wealth. What excites us is that we can make money and by doing so help improve things for everybody. We believe that successful businesses create regenerative growth, that is, they build products and services that on aggregate add resources to our planet. We call this Regenerative Growth. Regenerative Growth comes in many ways. Tesla intends to build cars that are fueled by sunlight. Biotech companies create novel tissues that help us build better materials or fight disease.
Here is a little history of capitalism and how we got to the point of funding Regenerative Growth.
The journey from Cavemen to Buffett to Tesla and Regenerative Growth
Investment management has been around ever since humans figured out how to safeguard assets to use them for future projects. For example, the cavemen gathered food with high protein so they could build muscle and hunt down large animals. The better they got at managing resources the stronger they became. Investment management in those days was all about survival. They didn’t care how they got things as long as they helped them survive.
Over time this changed. We became a bit more civilized when channelling funds to future projects. People like Warren Buffett made a fortune investing in profitable businesses that managed to eck out a monopoly for themselves. They seek dominance and spend a lot of resources on excluding competition to keep pricing power. Values, purpose and ethics are secondary.
Selling sugar water to obese kids or raising prices for railway services is considered good business practice. Insurance companies are very good at sucking premiums out of customers and then avoiding payouts. Another characteristic of such businesses is that they are incentivized to minimize equity, which reduces them to incrementalism.
To remedy their consciousness and look good at the thanksgiving dinner table those investors give money back for good causes. So, the mantra is: "Make it the dirty way and then do good things with it."
It doesn't have to be that way
We reached a point in the development of capitalism where this separation goes away. Future businesses will only succeed if they are regenerative by adding resources, not excluding them. Our thesis is that Regenerative Growth is not only better for everybody but the only way to successfully compete in the future. Regenerative Growth literally means to grow by creating again and again. Whether this be Tesla building cars that are fueled by solar power or biotech companies developing organisms that perform regenerative functions. We will be investing in those businesses.
Regenerative Growth has huge implications for expected returns. First, these companies end up creating more resources than they use. Second, their rate of innovation is directly related to their regenerative function. The better they are at building regenerative products and services, the faster they grow. This is precisely why they become more competitive and valuable.
Regenerative growth can deliver higher returns.
View our current portfolio