Investment strategy Essay

Adams discontinuity based enthronization dodging revolved close to reservation invest in companies which were in in the process of or on the fore of exploiting dramatic and sudden changes in well real markets. Adams center oned on both discontinuities and a targeted enthronement strategy in his look for above average returns. Adams operationalized his discontinuity based investing method by hiring still engineers as partners, leveraging their technical training in the search of promising markets in which to invest.Overtime ACMs investment focus evolved to focus on markets which he and his partners were already relatively familiar with and had already recognized as attractive. From a Limited Partners perspective Adams strategy in comparable to a festering-investing strategy many fund managers utensil in the equity markets. That existence said, Adams is searching for method of discontinuity based investing looks to capitalise on a companys potential growth well before the y have reached a large enough surface to be listed on the equity market.ACM developed more sophisticated pre-requisites to investment developed overtime, these methods digress from typical investment managers and Private Equity/ enter Capital theories firms. Firstly, ACM was only interested in investing in companies which had transmission line to commerce relationships with their customers, meaning companies without a retail branch from which to distribute products or services to consumers. Secondly, ACM believed the firm values and hence the value of their investment would be driven by return on investment (ROI) of single business customers.Whilst always remaining focused on the business making us of first generation applied technology or being one of the first companies to use a specific technology for a specific application. A combination of ACMs investment strategys divergence from typical investment theory, as it invested in small companies whos growth prospects were infini te, focused on ROI of a firms business clients and utilise the partners wealth of knowledge and expertise to gear ACM to being extremely technology focused allowing for Limited Partners looking for diversification to make probatory ground.Not only were investors being exposed to diversification in the carcass of different investment methodologies, an LP also received exposure to the inherently graduate(prenominal)-pitched growth technology sector, all of which was a fantastic way to urinate access to shifts that would create opportunities for start-up companies to become market leaders leading to high returns for investors. The four primary causes of discontinuities 1. Standards  2. Regulation  3. Technology  4. DistributionAdams believed Market cod diligence is the only due diligence you can do autonomous of a transaction. A unique part of the ACM strategy was the need for strong firm agreement upon the industry or market before single(a) companies were consi dered for investment. This was based on the premise of top down analysis, meaning that only when market or industry based analysis showed potential for a discontinuity based investment would further research be conducted to find workable target companies.In addition, the inclusion of a Discontinuity Roundtable, consisting of twenty industry experts and observers that sporadically met with the ACM partners to identify and discuss market discontinuities, provides a comprehensive and systematic advent to identifying investment opportunities in the market, and makes ACM more attractive as an investment partner.