White Falcon Capital Management

[Parsad]

As we all know, passive investing beats 80% of active management over the long-term.  But for those Canadians that are looking to allocate a portion of their capital to an active manager, I would like to introduce White Falcon Capital Management.

 

White Falcon Capital Management Ltd.

 

Run by Balkar Sivia, who started as a part-time analyst with Tim McElvaine, then made his way to well-regarded value firm Burgundy Asset Management in Toronto.  At Burgandy over ten years, Balkar earned his way from a junior analyst to Vice-President.  I knew him when he started as an analyst with Tim and followed his career since, so I'm very pleased with his success.  He recently went on his own with White Falcon Capital.  

 

My family will be investing a portion of their investment capital with White Falcon Capital.  In Canada, as much as I love all of them, the value investing legends we have are generally older than me and not getting any younger.  Sadly, I don't see a lot of young managers taking on the challenge in Canada either, unlike in the U.S. and Europe.  Balkar is relatively young, but with a ton of experience, and a good track record.  If I'm gone, I know my family can trust him like they could if it was one of my older value friends. 

 

His fee structure for a managed fund/account is unique as well in Canada.  He has no management fee and charges only 15% of any gains with a high watermark.  So down years, he gets nothing.  Up years, he gets 15% of any gains.  And he only receives any compensation when he's above your high watermark.  White Falcon Capital is only open to Canadians.  I encourage you to take a look!  Cheers! 

[MikeL]

Do you happen to know the minimum amount requirement? 

[Monsieur_dee]

Thanks for this parsad. Couldn't find his track record online but I'll reach out. Would you be willing to disclose the % of family funds you're investing alongside him. Thanks in advance. 

[james22]

Better than Blue Falcon, certainly.

[Parsad]

On 2/8/2022 at 12:08 PM, Monsieur_dee said:

Thanks for this parsad. Couldn't find his track record online but I'll reach out. Would you be willing to disclose the % of family funds you're investing alongside him. Thanks in advance. 

 

Small amount to start...less than 5%.  We'll add more each year.  It's so that my mother, brother, niece and nephew have someone to turn to for investments if I get hit by a bus...alongside Tim McElvaine and Francis Chou.  I haven't invested with Tim and Francis, as they were well on their way when I started to make a buck, but I thought we would put money in with Balkar in the early days.  My family knows that if something happens to me, buy some index funds, hold the FFH and BRK, and put the rest with Tim and Francis...and now Balkar too!  Cheers!

[WhiteFalcon]

Sanjeev - Thank you for the endorsement! I really appreciate it. 

 

To everyone else - The Min is $50,000. We can manage TFSA, RRSP, cash or corporate accounts. We have some blog posts and my first letter to partners on the website. The investment philosophy is to invest in compounders, value as well as growth names. We do not short but can hedge and/or raise cash.

 

I am attaching a presentation that should answer more questions. 

 

I'd love to get to know people here so please feel free to get in touch (email is [email protected]). Also, please subscribe on the website to be on our mailing list. 

 

Balkar

 

 

 

 

WhiteFalconPresentation.pdf

Edited February 10, 2022 by WhiteFalcon

[tytthus]

Enjoyed this write up:

 

https://valuepunks.substack.com/p/deep-dive-hdfc-bank-hdb-us

 

Unless i misunderstood, author is from WhiteFalcon.

[WhiteFalcon]

Thanks tytthus. Glad you enjoyed it. Yes, I am the author. My next deep dive will be in April. 

[realassetsvalue]

Is it a feature of being based in Canada / only accepting Canadian investors that White Falcon is able to charge an incentive fee on SMAs? This is not possible in the US I believe?

[gfp]

43 minutes ago, realassetsvalue said:

Is it a feature of being based in Canada / only accepting Canadian investors that White Falcon is able to charge an incentive fee on SMAs? This is not possible in the US I believe?

sure it is possible in the US - the SMA client must be a qualified purchaser or a qualified client (kind of like an accredited investor but a different standard). 

[WhiteFalcon]

Yes, correct - Canada allows it but US does not unless accredited inventor. 

 

Again - if there is any feedback or if anyone just want to talk stocks, please feel free to get in touch.

 

 

[realassetsvalue]

On 2/11/2022 at 7:56 AM, gfp said:

sure it is possible in the US - the SMA client must be a qualified purchaser or a qualified client (kind of like an accredited investor but a different standard). 

 

Oh good to know - thanks!

[WhiteFalcon]

Attaching our Q1 2022 Partner's letter.

 

Please feel free to subscribe on the website to get future letters and blog posts.

White Falcon_Q12022 Partner Letter.pdf

[WhiteFalcon]

Hi All - 

 

I am in Vancouver for the next couple of weeks. If someone wants to grab a coffee or drinks, please feel free to get in touch. If there is wider interest we can organize drinks at a time/day that works. 

 

Also - the 2Q letter has been posted on the website here: https://www.whitefalconcap.com/letters

 

Cheers!

 

Balkar

[WhiteFalcon]

Hi All - 

 

Attaching our FY2022 Letter.

 

For folks looking for ideas - highlighted Diversey Holdings (DSEY).

 

Please let me know if there are any questions or feedback.

 

Cheers,

 

Balkar

WhiteFalcon_FY2022PartnerLetter.pdf

[Dinar]

Thank you for a very interesting letter, could you please discuss the Canadian company that provides software for utilities?  Specifically, where do you see revenues and EBIT in say 2030, if it is not too much trouble?  Thank you in advance

[WhiteFalcon]

Hey Dinar,

 

I am attaching a report on CopperLeaf. Not much has changed since the report, growth has disappointed at the margin and there has been a CEO change for the positive.

 

Balkar

CopperLeafReport_WhiteFalconCap.pdf

[UK]

I like your value now/value tomorrow labels, both still value:), sounds better than value/growth, will copy that from you:)

[WhiteFalcon]

Feel free because I copied it from Howard Marks!

 

This value vs. growth debate is a bit of a pet peeve. I think it is more important for ideologues and consultants/allocators in asset management than investors. Die hard value investors will take ALL kinds of risks but not pay up for a quality business..I don't get it!

 

Warren Buffett, when he managed the BPL partnership had generals, workouts and arbitrage and these were three different 'factors' that helped him with returns year in and year out. I think this is the right approach vs. only value or only growth.