About VGI Partners
“It takes a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.” – Nathan Mayer Rothschild
VGI Partners is a high conviction global equity manager. VGI manages capital for a select number of high net worth individuals, family offices, endowment funds and other wholesale clients. VGI’s Investment Team is based in Sydney and New York.
At VGI, we focus on businesses that we understand and where we believe we possess insights not appreciated by the wider investment industry. Long term business success is achieved through operating where you have a competitive advantage. In the business of investing, competitive advantage is obtained through superior knowledge and analysis.
VGI believes that its long term investment horizon provides a competitive advantage in an investment world which is increasingly focused on the short term.
VGI invests in a relatively small number of high quality businesses. VGI believes that diversification preserves wealth, while concentration builds wealth. This is complemented with opportunistic short selling of low quality businesses that are typically structurally challenged, poorly managed and materially overvalued.
Alignment of Interests
“An example of a really responsible system is the system the Romans used when they built an arch. The guy who created the arch stood under it as the scaffolding was removed. It’s like packing your own parachute.” – Charlie Munger, Berkshire Hathaway Annual Meeting, 1993
Alignment of interests is a critical aspect of VGI’s business model and culture. This is achieved through the following:
- VGI’s principals invest a material proportion of their net worth in VGI, the various VGI Partners Funds and/or an account managed by VGI;
- VGI’s Investment Team is incentivised according to fund performance, with all staff encouraged to re-invest any discretionary bonuses into the Fund; and
- VGI staff, including principals, do not purchase securities outside of the Fund. The VGI Investment Team focuses all of its time and energy on managing clients’ money.