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Michael I. Schwartzman, President
ValueSearch Capital Management, LLC
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ValueSearch Capital Management – now a manager of family funds
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ValueSearch Capital Management (VCM) has stopped accepting new limited partners to its partnerships and has wound down the partnerships it used to run. In October 2007 we have made the decision to wind down the partnerships, and in December of 2007, after consultations with our limited partners and tax accountants, have begun the orderly process of retiring our limited partners. VCM is turning itself into an entity involved solely in managing the funds of Michael Schwartzman’s family.
The content of this website, wherever it refers to partnership procedures, requirements to new partners and other features relevant to partnerships, is no longer applicable to the business conducted by ValueSearch Capital Management. This content is preserved on this website solely for the convenience of the former limited partners of VCM partnerships and for the purpose of outlining VCM investment framework for the benefit of VCM suppliers, observers and associates.
With the passage of time, the portions of this website solely pertaining to the operation of the partnerships, once they become of little use to former limited partners, will be removed.
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Welcome to ValueSearch Capital Management
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I founded ValueSearch Capital Management (VCM) 20 years ago. Its investment principles and rules of conduct with prospects, clients, service providers, and regulators reflect my personal principles to a great degree. By studying the documents on this website, you will learn about VCM’s investment framework, our past investment returns, and the investment manager who will manage your money. And in your search for an investment manager, nothing will be more important than establishing your trust in the manager, and relying on this trust when events in the market or the economy happen too fast for your own thoughtful reflection.
VCM manages two partnerships: ValueSearch Equity Partners (VEP) and ValueSearch Equity Partners II (VEP II). The principal difference between the two is in the use of leverage: VEP is leveraged and VEP II is not. These partnerships invest for the long term in a small number of exceptionally well-run public companies, and our partners find it easy to understand VCM’s well thought-out and intuitively clear investment framework. This framework was developed by VCM, and it has been used successfully for almost 20 years.
We will be up-front with you on this website, and we will disclose our past returns and investment decisions, including our mistakes. The website will allow you to study our investment framework, our legal framework, and the principles that govern our relationship with our limited partners. You will see that I have a very substantial investment in the partnerships run by VCM; my net worth depends on the returns of these partnerships.
We want you to use the same approach in choosing your investment manager that we use when choosing the companies in which we invest. We observe them for a long time, we study their past results, and we try to understand their relationship with their shareholders. Most importantly, we get to know their management – we invest only in companies which are run by excellent and trustworthy managers.
If you become a limited partner with us, you will benefit from what you see on this website: an honest discussion of our decisions, returns, and strategic moves. We will treat you as a true partner, and we expect you to put some effort into understanding the General Partner, who will manage your money. Take your time and get to know us. Our website is an excellent tool for this, but you must be willing to put some time into this effort.
During the next crisis of the stock market, your thorough study of our past decisions, our past letters to our partners, and our past returns, will allow you to understand our decisions. That’s when your homework in studying your manager will pay-off, the same way our homework pays off when studying the companies we invest in. Doing our homework allows us to make profitable decisions when many market participants base their decisions on emotions or shallow knowledge, quickly obtained during the crisis.
VCM’s website will allow you to make intelligent decisions related to choosing and monitoring your money manager. Use it well.
With warm regards,
Michael I. Schwartzman, President
ValueSearch Capital Management, LLC
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Next Step: Using This Website
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If you wish to study VCM and its partnerships in depth, a good start would be the Performance Overview page and the Profile of the Partnerships document. However, access to this page and to this document, excepts its summary, requires Registered Guest privileges.
You and the VCM Website further describes how this website will assist you in learning about VCM.
How to Access This Site will help you understand the access procedures and the restrictions on access to this website.
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