Sorengo Partners

Sorengo Partners is an independent, single-strategy boutique investment manager. Portfolio manager Theron de Ris has over a decade of investment management experience. Our sole objective is to earn superior full cycle returns for our clients. True alignment of interests is central to our philosophy, informs our investment approach, and is hardwired into our operations, structure and terms. Our investment approach focuses on supply-side imbalances, rooted in capital cycle dynamics whereby capital flows into and out of industries, countries or companies, and returns on capital change. As economics improve, excess capital floods in, spoiling the party for everyone, and the cycle resets. Timing is key. We are patient, long-term investors, seeking opportunities before capital re-enters. Certain businesses and segments are less susceptible to the competitive pressures of the capital cycle. These include oligopolies, local monopolies, regulated industries, or those dominated by private equity, as well as segments where price is not the primary demand driver (e.g. luxury goods). Incumbents in these areas can sustain higher returns. Regulation or disruptive technologies can also distort the shape or duration of the cycle. Our framework is equally useful for identifying opportunities in this cohort. At the company level, we prioritize disciplined and effective cost and capital management. We favour owner-operator models and typically invest in small to mid-cap companies where inefficiency creates steeper valuation discounts. This approach takes us to unloved corners off the global market and “off-the-run” opportunities, offering the potential for both improving returns and revaluation. A concentrated international portfolio of 25-30 holdings reflects several uncorrelated capital-cycle themes and ideas.