- A Unique Investment Firm
- Flexible Charter
- Portfolio Manager
- Fundamental Analysis Risk vs. Reward Orientation
- Long-Term Investment Orientation; Concentrated Portfolio Approach
- Small Size
Flexible Charter: Chapter IV was designed to pursue the best investment ideas irrespective of the market where such ideas originate. Specifically, it has the flexibility to invest in public or private securities, invest in companies whose enterprise values range from $50 million to $5+ billion, invest for control or take small minority positions, invest at any level of a company's capital structure, establish long or short positions, utilize leverage at the fund level and/or corporate level and invest in healthy companies or distressed situations with turnaround potential.
Portfolio Manager: Firm founder and portfolio manager, Barnes Hauptfuhrer, has a 25+ year record of success in investing capital and various other capital markets roles: first, as an M&A advisor for Kidder Peabody in New York (from 1981-1988); second, as founder and portfolio manager of First Union (now Wachovia) Capital Partners, a highly successful private equity group during his tenure (from 1988-1998); third, as Co-Head of Wachovia's Corporate and Investment Bank, one of the largest corporate and investment banks in the United States (from 1999-2004). Chapter IV was founded due to Mr. Hauptfuhrer's desire to start another entrepreneurial venture and return to his passion for investing. Our firm name emanates from the fact that Chapter IV is the fourth chapter of Mr. Hauptfuhrer's professional career.
Fundamental Analysis Risk vs. Reward Orientation: We believe intensive fundamental analysis, capital markets awareness and sound risk/reward judgment are critical to investment success. In particular, we believe accurate risk assessment is essential, yet remains one of the most underappreciated variables in many investors' decisions. Preservation of capital is a central investment tenet of the Fund. Chapter IVís target minimum returns (which range from 15%-25%) are a function of the specific risks associated with each of its investments.
Long-Term Investment Orientation; Concentrated Portfolio Approach: We bring a longer term private equity mindset to our investments (typically focusing on the 3-5 year return profile of target investments). In addition, we believe that a concentrated portfolio (including 8-12 investments) will provide superior returns for our investors.
Small Size: Chapter IV is an intentionally small investment firm because we believe the size of assets under management and the number of investment professionals (and associated process dynamics) within a firm often undermine the achievement of superior investment returns. We believe the investment judgment by the portfolio manager and the investment team's ability to find and identify "special situations" are the critical drivers of investment success.