Bares Capital's Top 12 Stock Picks
2023 was one of the best years for the equity markets, with solid gains across various sectors. Large-cap growth stocks fueled the rally depicted by the Nasdaq 100, which gained about 48%.
Established in 2000, Bares Capital Management, Inc. (BCM) stands as an employee-owned asset management firm located in Austin, Texas. The firm's team, comprised of seasoned investment professionals, conducts original fundamental research on publicly traded companies. BCM's research efforts are dedicated to identifying qualitative differentiators in businesses, placing a strong emphasis on competitive excellence, business quality, sustainability, management talent, and growth potential. The overarching objective of their research process is to pinpoint a select group of companies believed to significantly compound shareholder value over extended periods. The firm operates under the belief that market inefficiencies present opportunities for patient, prepared, and disciplined investors to acquire equity securities of these companies at fractions of their anticipated future values.
The organization at BCM is built and maintained with a focus on consistently generating research-based insights, fostering a culture characterized by integrity, excellence, curiosity, ownership, and collegiality. In addition, the firm prioritizes high-level client care and communication, recognizing its role as a trusted fiduciary committed to prioritizing clients' interests in alignment with their investment objectives. In support of this commitment, BCM has consciously moderated asset growth, kept fees low, and aligned its incentives with the long-term goals of its clients.
Brian Bares, the founder of Bares Capital Management, played a pivotal role in shaping the firm's investment philosophy and research process. His responsibilities encompass portfolio management, investment due diligence, client relationships, and overall firm strategy. Brian, who holds a B.S. in Mathematics from the University of Nebraska and the CFA designation, authored "The Small-Cap Advantage," published by John Wiley & Sons in 2011. Additionally, he serves as an external advisor for the M.B.A. Investment Fund at the University of Texas at Austin.
Bares Capital Management operates as a hedge fund, serving a clientele of 47 clients. As outlined in the Form ADV from April 26, 2023, the firm manages discretionary assets under management (AUM) totaling $2,723,481,237. The latest reported 13F filing for Q3 2023 unveils $2,341,192,866 in managed 13F securities, featuring a substantial top 10 holdings concentration of 82.17%. In summary, Bares Capital Management, under the leadership of Brian Bares, continues to be a prominent player in the hedge fund landscape, distinguished by its commitment to research-based investment strategies and unwavering client-centric practices.
