Pivot Point Capital was a San Francisco based, registered investment adviser from 2005-2019. Our strategy was to invest in U.S.-listed small cap equities with the goal of creating long-term value through a highly disciplined investment process supported by the kind of intensive, analytically rigorous due diligence typically associated with private equity acquisitions. Our team closely tracked a select group of high quality companies led by superior management teams, looking to capitalize on compelling investment opportunities when short-term issues unnerved investors. We managed a highly concentrated portfolio, typically making one new investment per quarter, invested with a one- to three-year horizon, and then worked collaboratively with management to add value.

We took great pride in aligning our interests with those of our investors and sought to establish long-term relations with them. We always put their interests first and recognized that we worked on their behalf. In that spirit, we communicated to our investors in December 2017 that we had decided to return investor capital and wind down the Fund based largely on the following considerations: i) we viewed the stock market as materially overvalued with an unattractive risk/reward profile, ii) we were concerned about the impact of passive investment vehicles combined with the increased use of algorithmic investing during a potential downturn, and iii) we felt that a concentrated, long-only fund such as Pivot Point would not perform well in this environment.

Investor capital was returned over the course of 2018 and Q1’19, as the Parthership’s holdings were gradually liquidated. By the end of Q1’19, the Fund had returned all investor capital. Over the 13+ year life of Pivot Point Capital, we materially outperformed both the S&P 500 and the Russell 2000.