About
North Mountain Capital is an investment firm founded by Tom Wirgau. The firm employs an opportunistic investment strategy rooted in a fundamental, value-oriented approach. Investments are generally made with a long-term time horizon and are typically unlevered. North Mountain Capital and its affiliates have invested across a broad range of asset types, investment strategies, market sectors, market cycles, and industries. This includes domestic equity and debt securities, as well as derivatives.
Operating Philosophy
1. No Guaranteed Returns
In no sense is any rate of return guaranteed to our partners. Yearly gains or losses reflect market value changes and do not necessarily indicate tax results.
2. Alignment of Interests
I will always treat my investors as partners. My own capital will be invested alongside yours, ensuring that our interests are fully aligned. I will profit only when you profit.
3. Focus on Long-Term Value
I prioritize long-term value creation over short-term market fluctuations. My investment decisions are guided by fundamental analysis, intrinsic value, and business quality rather than market trends or speculation.
4. Conservative and Disciplined Approach
Capital preservation is my foremost priority. I will take a cautious approach to risk, ensuring that investments offer a strong margin of safety. I will not engage in speculative trading, leverage, or market timing.
5. Transparency and Honest Communication
I will communicate openly and honestly with my partners. You will receive periodic updates on portfolio performance, investment decisions, and rationale. If I make mistakes, I will acknowledge them openly.
6. Rational and Independent Thinking
I make investment decisions based on careful analysis, not on market sentiment or popular opinion. I will act independently, guided by my principles and disciplined research.
7. Selective Investment Approach
I will only invest in businesses I understand and in which I have confidence. My portfolio will be concentrated, focusing on my best ideas rather than spreading capital too thinly. I will minimize the risk of permanent capital loss (not short-term fluctuations) by ensuring a strong margin of safety.
8. Performance Expectations
I do not promise quick or extraordinary returns. My goal is to achieve solid, risk-adjusted, and above-average returns over the long run. I prefer a five-year evaluation period, but three years is the minimum for assessing performance. There will be periods where I underperform the market, and if results over three or more years are unsatisfactory, I should reevaluate my investment strategy.
9. Fees and Compensation
My compensation structure is designed to reward long-term performance. There will be no management fees; instead, I will participate in a share of profits only if I exceed a reasonable benchmark return.
10. Patience and Discipline
I will not feel compelled to act constantly. If market conditions do not present attractive opportunities, I will hold cash and wait. Investing should be about seizing the right opportunities, not being perpetually active.
11. Ethical Conduct
I will operate with the highest standards of integrity and ethical behavior. I will never compromise my principles for short-term gains, and I will always put my partners’ interests first.
By investing with North Mountain Capital, you acknowledge and agree to this operating philosophy, which will guide all my investment decisions and operations.