About Rye Bay Capital
Established in 2015, Rye Bay Capital LLP is an independent, privately held alternative investment management business. Through our intensive programme of fundamental research, we seek to generate superior returns for sophisticated investors by identifying compelling opportunities in listed European companies.
Rye Bay Capital focuses on mid- and large-capitalisation stocks across all sectors in Europe, excluding financials. We maintain a concentrated portfolio of high-conviction investments selected on the basis of rigorous analysis.
We invest in businesses we know in-depth, within sectors and countries where we understand the underlying dynamics, and will typically hold positions in 30-45 companies at any one time.
Rye Bay Capital has a consistent valuation process which is underpinned by the construction of in-house models for all companies. Regular management contact, along with field trips, are a key part of our investment process. We also continuously monitor industry data to ensure our long-term investment thesis is consistent with short-term developments.
We believe that superior returns come from a rigorous approach to fundamental analysis. We look to invest into companies where we believe we can confidently model the cash-generation potential for at least five years, including the expected use of those cash flows. We seek to identify companies where we feel the investment case is not properly understood by other equity market participants.
While we do invest in large capitalisation companies, we believe the most compelling investment opportunities are often in the mid-cap universe where stocks are generally less well understood, and this is where the majority of our exposure lies.
We have no bias to investment styles such as ‘growth’, ‘value’ or ‘momentum’, rather we look to invest in companies where we believe we have an investment edge and where we believe valuations do not correctly reflect the outlook for the business.