SOAPSTONE MANAGEMENT L.P.

Soapstone was formed in September 2005 and is owned by Jed Nussdorf. The firm is registered as an investment adviser with the SEC, meaning it provides investment advice to clients. The brochure provides information about Soapstone's qualifications and business practices, including details about their advisory services, fees and compensation, types of clients, methods of analysis, investment strategies, and risk of loss.

Soapstone's investment objective is to generate risk-adjusted returns exceeding the S&P 500 Index. They primarily invest in equity securities, including derivatives and equity-like instruments, across both developed and emerging markets. Their strategy involves a concentrated long portfolio and a diversified short portfolio, focusing on specific industry verticals like financial services, consumer staples, industrials, and TMT. This specialized approach aims to enhance focus, develop domain expertise, and create a competitive advantage. Soapstone seeks to identify businesses with sustainable competitive advantages, capable management, and shareholder alignment. They employ a rigorous research process to find investments with the potential to compound value at an attractive rate of return without relying on multiple expansion. They invest only when suitable businesses are available at a discount to intrinsic value and historical earnings multiples. They also utilize leverage to potentially increase total returns, but acknowledge the increased risk of losses, especially during periods of market decline.

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