The Carnot Fund I

Today we’re introducing something new: the Carnot Fund I. This will be the first vintage of our premium subscriber only portfolio, seeded with real capital and managed with a simple philosophy - minimal turnover, long time horizon, and quality that compounds. The portfolio won’t enter and exit out of names every quarter. Instead, we’ll focus on businesses that can quietly compound wealth over many years, even if they aren’t the most exciting stories in the headlines.

Because of that philosophy, the portfolio will tilt heavily towards traditional deep value. It’s not the easiest mandate in a market allergic to patience, but it’s the right one for investors who want their money working steadily over the long run. Premium subscribers will have full transparency into the portfolio and its moves, with frequent updates. Since we’re still finalizing allocation, the next Substack will only start with an initial amount capital to seed the portfolio.

Why even call it a Fund?

Every dollar of earnings from this Substack will be rolled directly into the portfolio. That means if you follow along, you contribute directly to (and hopefully benefit from!) this compounding journey. You’re a part of the Carnot Fund. Together, we’re taking the next step from individual investment selection to full-on portfolio construction, putting investing into practice.

Your support makes this possible, and we don’t take it lightly. This is a shared journey, and we hope it’s one that proves both educational and rewarding over time. Now, let’s take a step back and look at where equities are currently at.