Blue Grotto Capital provides investment advice, primarily focusing on individual equity securities for both long and short positions. They aim for high returns by identifying unrecognized market situations and shorting companies with unsustainable business models. Their research focuses on key issues, and they actively manage investment behaviors using Bayesian updating. Blue Grotto tailors services to separately managed accounts but does not tailor to individual investors in commingled funds.
Fee Structure
Blue Grotto Capital manages investments for pooled investment vehicles and separately managed accounts. They charge an asset-based fee, generally between 1.0% and 1.5% annually, based on the amount invested. They also charge a performance-based profit allocation, typically 10% to 20% of annual net profits, subject to loss carryforward and hurdle rate limitations. Fees for separate accounts are negotiated individually.