Ormer Equity Partners

Ormer Equity Partners owns a collection of 15-20 exceptional businesses: rare, resilient, and self-reinforcing. They are run by management teams with meaningful skin in the game, just as we are. They are smaller, overlooked by institutional capital, and trading at prices that don’t fully reflect their quality.

Strategy

We spend our time turning over rocks. We apply three tests to every business we own and reapply them continuously. An exceptional business, aligned management, and an attractive price. Passing these tests once is not enough. What made a business exceptional yesterday may not make it exceptional tomorrow. We hold because we keep validating, constantly testing our thesis. We focus on high-quality companies that are overlooked or misunderstood by the broader market, particularly at the smaller end where institutional capital is often absent and analysts often do not provide coverage, creating an inefficient market.

• Exceptional businesses are rare, resilient, and self-reinforcing. Rare, because their assets cannot be replicated. They are often built over generations in ways new entrants cannot shortcut. Resilient, because customer delight creates pricing power and strong balance sheets create patience. Self-reinforcing, because their moats widen with time, and every stakeholder wins. A combination of all three produces a remarkable business.

• Aligned management protects and nurtures what makes a company exceptional. We look for meaningful skin in the game: founders, family-control, or long-term operators with incentives that match shareholders. As Munger observed: show me the incentive, and I’ll show you the outcome.

• Attractive price is a level at which we can acquire an ownership interest with the potential for outsized long-term returns. We look to buy at levels where we can realistically envisage a doubling of the share price in five years. Many exceptional businesses sit on our watchlist, waiting for the right price.

Companies that meet our criteria are few and far between, which is why we hold between 15 and 20 of what we believe are the very best. Our responsibility is to stay patient, disciplined, and fully aligned with our partners.