Xenith Capital
Concentrated, research-led equity portfolios
We run benchmark-agnostic, long-biased portfolios built from first-principles research. Our edge comes from understanding unit economics, competitive dynamics, and management incentives better than the market.
- 10–25 core positions with strict sizing rules
- 3–7 year underwriting horizon with thesis checkpoints
- Opportunistic hedging at portfolio and position levels
What We Look For
Quality, mispricing, and catalysts.
Durable economics
High incremental returns on capital, pricing power, and cash conversion.
Structural advantage
Distribution, data, network effects, or switching costs that compound.
Aligned operators
Owner-operators with rational capital allocation and transparent goals.
Process
From scuttlebutt to sizing.
- Theme mapping and industry structure analysis
- Customer calls, supplier checks, and cohort data
- Variant perception and key performance indicators
- Risk budgeting by liquidity and drawdown cost
- Trim/add rules around milestone outcomes
- Hard stops when the thesis is disproven
Case Study: Distribution Moats
Evaluating durability beyond product features.
In vertical software, distribution advantages often outlast feature advantages. We assess the depth of customer relationships, integration into workflows, and the replacement cost of switching. We also examine the vendor's data exhaust and whether it can be used to continually improve pricing and product velocity.
When a competitor appears cheaper, we test whether switching unlocks sufficient value to overcome inertia and risk. Frequently, the answer is no—especially when training, compliance, and ecosystem integrations are considered. This is where we find durable, compounding economics.