Taylor Hoffman
Capital Management

We invest in a select number of well-managed, enduring businesses through a proprietary, data-driven approach.

Ways to Invest

Private Investments Funds

Accredited investors may invest alongside our investment staff in our flagship private fund, Arrington Fund LP. In Arrington, we allocate funds to a diversified group of well-managed American businesses. At opportune times, Arrington also leverages derivatives contracts. We seek to maximize total return in the most tax-aware manner. All investment ideas are curated by our proprietary, data-driven quantitative model that sifts through thousands of companies to identify superior businesses. All final investment decisions are made by our investment professionals with decades of investment experience. Arrington has zero management fees and only charges for performance.

Separately Managed Accounts

Your portfolio is held in your own Separately Managed Account (SMA) at Charles Schwab, managed by us. Your SMA leverages the same proprietary and data-driven investment strategy that we use to manage our private funds. As an account holder, you may monitor your portfolio composition and performance at all times through the Charles Schwab web and mobile apps. Accounts are available as individual accounts, joint accounts, or IRAs. We accept clients with a minimum $25,000 investment and charge a straightforward 1% per annum management fee.

Investment Philosophy

Our investment principles seek to identify:

Well-managed businesses with a sustainable competitive advantage, superior capital allocation, and attractive long-term growth prospects, trading at a fair valuation.

Our investment principles create a:

Transparent, scalable measurable, and repeatable investment process that seeks to minimize irrational and emotional investment decisions.

Learn about our Investment Principles

Principles

Principles we seek in a business

We blend a data-driven, principles based investment approach with decades of investment experience.

Our computer models quantify our investment principles into well-defined financial metrics and sort through thousands of financial statements and companies in real-time.
Our investment professionals apply the same principles to analyze and audit investment ideas.

01 Top-Notch Management

We want managers who focus on per-share value rather than sales or earnings, advocate for decentralized operations, follow cash flow based metrics, and authorize significant repurchase programs at opportune times.

02 Sustainable Moat

Companies that are dominating and growing their market share will benefit from superior unit economics over the long-term. We want platform companies that create a network effect as they grow.

03 High Returns of Capital

We seek companies that consistently achieve higher reinvestment rates on their capital than the comparable market return rate.

04 Growth Opportunities

We seek companies that can achieve long-term organic growth in revenue and/or owner earnings.

05 Strong Balance Sheet

Markets fluctuate, and economic cycles come and go. Companies with strong finances are better prepared to adapt to ever-changing circumstances and to use market downturns to expand their market share.

06 Attractive Valuation

Great businesses rarely trade at an attractive valuation relative to the market, but stock prices fluctuate and we seek to take advantage of that at opportune times.

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