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Clarence Drive Capital is carefully structured to ensure the best possible alignment with investor interests

  • The firm's objective is to build long-term partnerships with investors. The focus is on performance over raising assets.

  • In keeping with this partnership approach, Clarence Drive Capital invests virtually all proprietor capital alongside partners, ensuring full alignment with their outcomes. When investors lose money, so does the firm. The firm does this not only to align interests with investors but because it believes in the strategy.

  • The firm has a unique fee structure that passes on the very low costs of the company to investors and is designed so the business earns a profit only if it delivers results. Inspired by the original Buffett Partnership, Clarence Drive Capital primarily earns a performance-based fee tied to absolute returns. Like the Buffett Partnership, a variable annual management fee exists but is strictly limited to covering the fixed operating expenses of the business. As the firm grows, this fee declines as a percentage of assets and the low costs are passed on to investors. In turn, the firm’s ability to earn a profit is contingent on delivering superior investment results. The alignment is clear: The firm only succeeds when investors do.

  • Many fund managers will raise a new fund for every possible attribute or new fad. Although this makes business sense it does not necessarily serve investors well. Clarence Drive Capital offers only its single best investment view.

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