Investment Approach and Philosophy

Bristol Capital Advisors, LLC ("BCA") believes that an investment approach focused on smaller capitalized companies is the best way to identify and seek to profit from undiscovered deep value investment opportunities.  We find these opportunities among companies we believe to be "under-valued" or "under-resourced," such as early stage development companies with growth potential, where the various stages of the business cycle provide a range of investment opportunities.  The value of these companies may significantly appreciate as a result of changes in management, governance, strategy or corporate and/or financial restructuring. 

Our three-pronged strategy (activist/pre-IPO/PIPEs) provides both diversification and the ability to concentrate the portfolio's investments where the best deep value opportunities may appear.  We pursue deep value investment opportunities where, through our in-house research, we believe that there is the potential for noticeable appreciation over a 12- or 24-month period.  We use an internally developed protocol to analyze the attractiveness of target companies, which includes examining the strength of the company as a whole and evaluating the areas for improvement and growth, as well as considering the particular deal terms that may be included or negotiated to help promote a positive outcome.

BCA favors consenting activist investment opportunities, but will pursue aggressive activist investing in particular cases.  In situations where management has repeatedly failed to execute on a business plan or make the desired improvements to the company's corporate governance, or there are signs that management may have internal conflicts of interest or are taking actions that have a detrimental impact on the company's operations or performance, BCA shall seek to implement the desired improvements through ongoing discussions with management.  At times, when progress is not made through these discussions, BCA may often seek to take other actions, such as seeking board representation or calling a special shareholder meeting. 

Late stage pre-IPO private equity allocations are made with the intention of profiting from a post-IPO sale of the holding, rather than planning for it to be a buy and hold long-term (i.e. 2 years+) investment. PIPE investments are made in cases where there are catalysts or the potential for catalysts (i.e. completion of later phases of drug trials) occurring in the near future (i.e. 6 to 12 months) to propel the stock forward and the pricing of securities is at a discount to market value at the time of investment.  These transactions are often structured to include provisions designed to protect against loss of principal and minimize risk.

We believe that the depth of experience and expertise of our portfolio manager as an investor in private equity and structured transactions, supplemented by the efforts of an investment team which has worked together for over two decades, is both a competitive advantage and a requisite for properly evaluating and pursuing activist, late stage pre-IPO and PIPE investment opportunities.