As of October 2018, Cable Car Capital LLC no longer accepts new separately managed account clients. Cable Car manages a private investment partnership, The Funicular Fund, LP, which is available only to accredited investors. The FAQ below presently describe the old separate accounts structure. New FAQ are forthcoming.
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Cable Car’s portfolio is hedged because the firm is usually agnostic as to whether the market is more likely to rise or fall in the near term, barring extreme valuations and unusual market environments. Over the long term, Cable Car believes there is a cost to equity and that a net long bias is appropriate. Unless it is represented in client portfolios, Cable Car’s view on any particular stock or asset class is not likely to be informative. In no case should anyone rely on any discussion of any security on this website for investment advice. Cable Car’s investment advice is limited solely to the purchase and sale of securities in client accounts.
That said, Cable Car welcomes new ideas and is always happy to discuss any company or security.
Each position is different. Cable Car always invests with a long-term, multi-year view of a business’ fundamentals in mind, and the firm believes patient investors can take advantage of time horizon arbitrage. However, Cable Car’s investment horizon may vary. In some cases, Cable Car hopes to compound capital continuously in a position for many years. In other situations, a stock may be expected to reach fair value in a shorter period of time. Short positions typically have a shorter time horizon given their less favorable risk/reward dynamic.
No. Cable Car’s investments are generally passive in nature. However, Cable Car regularly meets with the management of its portfolio companies and will proactively communicate with management when opportunities for value creation become apparent.