About East Cape Capital Management, L.P.
East Cape Capital Management (ECCM or “the company”) is a Delaware limited partnership principally engaged in the business of acquiring and holding concentrated positions in a limited number of large capitalization, ESG-centric (Environmental, Social, and Governance) companies. ECCM’s objective is to maximize its long-term compound annual rate of growth in intrinsic value while allocating capital to sustainable businesses with the most positive impacts on the planet.
ECCM was incorporated under limited partnership law in the state of Delaware on October 5th, 2022. ECCM was founded by Sahm K. Taguchi (Investment Manager) on October 5th, 2022. The Investment Manager has responsibility, subject to the overall supervision of the investment of ECCM’s assets and liabilities in accordance with the investment policy of ECCM.
The substantial majority of the Company’s portfolio is typically allocated to 8 to 12 core holdings, usually comprising liquid, listed large capitalization North American companies. The Investment Manager generally focuses on businesses with significant investment in ESG operations, which it believes have limited downside and that generate predictable, recurring cash flow. The Investment Manager aims to manage risks through careful investment selection and portfolio construction, engaging in typically only three to five new core investments each year. The Investment Manager may also engage in hedging strategies to mitigate market-related downside risk or to take advantage of asymmetric profit opportunities. Companies are analyzed after passing the initial negative ESG screening; we screen statistics ranging from carbon output, equity compensation, diversity-in-leadership, and wages. We then, based on fundamental models, value the business, determined by its future cashflows.
The Company is named after the East Cape in Cabo San Lucas, Mexico, an unspoiled natural environment. Similar to our time-tested investing principles, we do not waver in the face of adversity and change. The East Cape is not only emblematic of our investing style but a personification of the beauty nature provides us, a beauty that we are obligated to preserve and inspiring our investments in ESG-centric businesses.
Management
Sahm Taguchi is the Chief Investment Officer at East Cape Capital Management, L.P., and he is an incoming freshman at the University of Chicago, planning to major in economics and computational and applied mathematics. He has been the CEO of The Good Books Foundation for several years, serving books to underserved communities to hospitals, school, prisons, and more. Moreover, he has previously served as the CEO of Invest in Us for two years, acting as a consultant for small businesses, designing websites and business cards.
Since reading Confidence Game: How Hedge Fund Manager Bill Ackman Called Wall Street’s Bluff, he has been passionate about value investing. In the summer of 2022, Mr. Taguchi wrote a 37-page paper entitled “Carbon Credits: A Salient Role in Environmental Economics,” where he discussed, analyzed, and modeled data about the effectiveness of carbon credits. In the summer of 2023, he continued his research working with Middlebury’s Jon Isham. He wrote a 21 page paper about green real estate development. Now, Mr. Taguchi hopes to be a catalyst for a new era of capitalism while compounding capital at high rates over the coming decades.
