The conditions under which capital is allocated.
I. Foundation
Capital is not charged for activity.
MAVENSMOOR participates in outcome.
Returns are shared.
Losses suspend participation until recovery is achieved.
Alignment is established through result, not process.
Capital is managed on a discretionary basis.
Decisions are made with full authority and full accountability.
Advice is not separated from action.
Results are measured in total return.
All outcomes are reflected without adjustment on invested capital over time.
Interim measures may inform. They do not define.
Relationships persist by choice.
Capital may enter. Capital may leave.
Continuity requires that departure remains possible for both client and MAVENSMOOR.
Capacity is finite.
It is determined by opportunity, not by demand.
When it is reached, it is not extended.
II. Operating Conditions
Capital is not required to be deployed.
The absence of opportunity is a valid state.
Inactivity is not penalized.
Cash is held when opportunity does not justify deployment.
It is the residual of selection.
It is not constrained by a target allocation.
Capital must remain returnable.
Positions are entered with exit in mind.
Liquidity is a requirement, not an assumption.
Capital is deployed globally in listed securities.
What is owned must be observable. What is held must be transferable.
Control is exercised through price and liquidity.
Time is not imposed.
Positions are allowed to develop or to fail.
Duration is not set. It is revealed.
Turnover is not targeted.
Activity is responsive.
It reflects decision, not requirement.
III. Decision System
Selection is not singular.
Different forms of opportunity are admitted on their own terms.
They are organized across distinct frameworks.
Inclusion depends on the framework through which they enter.
Positions are not held by default.
They are re-evaluated on schedule and as conditions evolve.
They must remain justified within their framework.
Recognition must persist. Otherwise, they are exited.
The portfolio is constructed across frameworks.
Different forms of opportunity are held together within a single body.
Outcome is determined by the whole.
Risk is set at the portfolio level.
It is established through chosen exposures and maintained through position decisions.
Positions either justify inclusion or they do not.
When they are not justified, they are exited.
When justified, they are not constrained by fixed size.
Weight evolves while justification persists.
Execution is deliberate.
Price matters.
The moment triggers but does not decide.
Points are set in advance.
IV Governance & Constraints
Diversification is maintained intentionally.
At initiation, no single position is asked to carry the outcome.
Weight evolves with performance.
Conviction is expressed at the portfolio level.
Risk is the possibility of permanent loss.
Price movement may signal. It does not constitute risk on its own.
Drawdowns are inherent.
Losses are confronted without delay.
Recovery is not assumed. It must be earned.
Leverage is not required.
Where used, it does not define outcome.
Return is derived from selection.
Assets are held with independent custodians.
Control is separated from safekeeping.
Records exist beyond the firm.
Records are maintained as a matter of fact, not narrative.
Capital is visible to its owner.
Mandates are not manufactured to gather capital.
Decisions are not influenced by the need to grow assets.
Growth does not define success.
Scale is limited when it begins to impair outcome.
Decision authority is singular.
Responsibility is not diffused.
Outcomes are attributable.
Judgment is exercised.
V Record & Integrity
Narrative and record remain distinct.
The DNA defines orientation.
The Investment Tenets express belief.
The Ledger preserves experience.
The Manual governs process.
The Covenant binds the relationship.
Outcome is the result.
The firm operates as a registered Portfolio Manager.
Regulations are observed.
Obligations are upheld.
Structure is maintained.
Integrity governs all.
Decisions remain within its bounds.
Outcome does not justify its breach.
Judgment accumulates through experience.
Wisdom accumulates through its application.
They are applied across time.
They are not altered by short-term outcome.
