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Established 2012

Top Mark Capital

Top Mark Capital strives to provide exceptional long-term investment outcomes by leveraging best practices from value investing, venture capital, and private equity. Our approach combines the art & science of investing and results in a distinct perspective on market dynamics.
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Founded

Partnerships

Annual Letters

%

Annualized Returns (TMCP, Net of Fees)

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Top Mark Capital

Our Philosophy

At the core of our investment approach are three essential principles that guide our perspective and decision-making process. These foundational beliefs enable us to navigate the market with confidence and precision:

  • Embrace the Manic Nature of Mr. Market
  • Harness the Power of Long-term Thinking
  • Challenge Conventions to Achieve Exceptional Outcomes

If you're trying to do better than average, you're lucky if you have four things to buy. To ask for 20 is really asking for egg in your beer.

Charlie Munger

If your behavior and that of your managers is conventional, you’re likely to get conventional results, either good or bad. Only if the behavior is unconventional is your performance likely to be unconventional ...and only if the judgments are superior is your performance likely to be above average.

Howard Marks

When you change the way you look at things, the things you look at change.

Max Planck

The concerns which fail are those which have scattered their capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there and everywhere. “Don’t put all your eggs in one basket” is all wrong. I tell you “put all your eggs in one basket, and then watch that basket.”

Andrew Carnegie

To enjoy a reasonable chance for continued better than average results, the investor must follow policies which are (1) inherently sound and promising, and (2) not popular on Wall Street.

Benjamin Graham

Simplify, and add lightness.

Colin Chapman

TOP MARK CAPITAL

Our Team

Mike Nicoletti
Mike Nicoletti
Founding General Partner

Analyst &
Portfolio Manager (TMCP)

Jason Wallace
Jason Wallace
General Partner

Analyst &
Portfolio Manager (TMHP)

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TOP MARK CAPITAL

OUR INVESTMENT PROCESS

 

Our investment process is best described as a flywheel that comprises three key stages: Thematic Analysis, Fundamental Analysis, and Portfolio & Risk Management. Each stage enhances the others, contributing to continuous improvement over time.

Our process utilizes best practices from Venture Capital, Value Investing, and Private Equity. 

  • Venture-style thematic analysis is used to identify trends and events that are destined to impact and disrupt markets over long time horizons.
  • Value based fundamental analysis is applied to surface quality investment opportunities.
  • New investments are made, and existing positions are managed, through a Private Equity like, IRR model for portfolio and risk management.  

 

  1. Stage 1:

    Thematic Analysis

    We utilize best practices from Venture Capital to analyze trends and events that form the core of the Thematic Analysis stage of our investment process... 

    • We monitor and analyze the events and trends that affect various industries and markets, such as macroeconomic factors, geopolitical developments, technological innovations, regulatory changes, consumer preferences, etc. and quantitative and/or qualitative methods to evaluate the potential impact and magnitude of these themes on different sectors and regions. 
    • The most attractive and relevant themes are selected for further research. 
    • This stage helps us generate a steady pipeline of investment ideas and to stay ahead of the market.
  2. Stage 2:

    Fundament Analysis

    We utilize best practices from Value Investors like Warren Buffett to assess the quality and investment return potential of individual assets... 

    • The output of Stage 1 is a selection of companies that we are interested in learning more about.
    • In Stage 2: Fundamental Analysis, we conduct a more traditional bottom-up securities analysis using various sources of information, such as financial statements, industry reports, interviews, etc. Specifically, we assess the business model, the management, the valuation, and the fit within our circle of competency.
    • The output of this work is an investment memo which includes an expected IRR (internal rate of return) for each investment that makes it through the process.
  3. Stage 3:

    Portfolio & Risk Management

    We utilize best practices from Private Equity in managing our portfolio composition and in establishing risk management procedures...

    • The projected IRR (determined in Stage 2) serves as a key input to structuring our portfolio.
    • We track our portfolio based on this IRR to target price over an estimated time frame, we’re able to evaluate those potential new investments weighed against those of our existing positions.
    • Our intention is to maintain a concentrated portfolio so the bar for inclusion is high. 

TOP MARK CAPITAL

Our Partnerships

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Established 2012

Top Mark Capital Partners

Top Mark Capital Partners is an evergreen partnership that launched in 2012 and has generated a 22% annualized return (net of all fees and expenses) as of March 31, 2023
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Established 2023

Top Mark Health Partners

TMHP implements the same investment process and philosophy as TMCP, but with a specific focus on health. Disruptive technology will have an increasingly outsized effect on the healthcare industry in the coming decades. In other words, healthcare is likely to change at an increasing rate. This change creates an opportunity set that we believe will include the types of asymmetric risk/reward profiles that are well suited to the type of research and analysis we do at Top Mark Capital.

Join Our Waitlist

To learn more about Top Mark Capital, please click here to join our waitlist.

Waitlist members will receive quarterly updates about our partnerships as well as information for prospective partners. Joining our waitlist does not represent any obligation to invest, it merely provides an opportunity for us to start a conversation.

Top Mark Capital

News & Events

PODCAST

Episode 2023.44

Telltales Podcast

Analyzing the Memo: A Deep Dive into Pages 13-18

Energy / Financials / US Manufacturing / Healthcare / Franchises / Logistics / Commodities

23q3

2023 Q3

Quarterly Letter
1685546627182

A Brief History of

Yield Curve Inversions

web3

Forget Blockchain

Generative AI is the real Web3

Telltales E23.29

Episode 2023.29

Telltales

Breaking Down AI Innovations, Energy Trends, and Healthcare Insights

Plus, a detailed breakdown of the cashflow impact to $MSFT's new $30 / month AI Copilot for Office 365

23q2

2023 Q2

Quarterly Letter
23q1

2023 Q1

Quarterly Letter
22q4

2022

Annual Letter
22q3

2022 Q3

Quarterly Letter