Glacial Ice by Christopher Burkett, in the private collection of Unio Capital’s founders
About Unio Capital
Unio Capital is an SEC-registered investment firm that manages an unconstrained equity strategy with an emphasis on deep-dive research and high concentration. Unio seeks to produce consistent idiosyncratic-driven excess return via a balanced portfolio that does not rely on factor-bias to outperform (e.g. “growth” or “value”). Our edge is understanding long-term competitive dynamics that play out over time not predicting short-term reactions to quarterly earnings.
John A. Allison founded the firm and Unio is owned and controlled by the Allison family.
Investment Philosophy
Unio’s investment philosophy is based on three enduring principles:
Long-term, sustainable free cash flow power ultimately drives long-term investment returns, which price volatility (up or down) can obscure in the short term.
Market mispricing (valuation) can either enhance or erode the return realized by equity investors, regardless of future FCF generation.
Permanent loss of capital is best minimized and long-term capital appreciation is best maximized by owning high-quality assets that are improving with time and whose risks are reducing with time (i.e. “great companies in great businesses'').
Key Strategy Differentiators
There are five high-level drivers of Unio’s approach and historical success:
High concentration: Unio takes high-conviction positions that it intends to own for at least 5 years—the top 15 holdings in the strategy has typically comprised over 75% of the overall portfolio.
Unconstrained idea generation: Unio looks for the 15–25 businesses globally that present the best risk-adjusted alpha potential. Few companies meet Unio’s ownership criteria. The firm’s research efforts are unconstrained by market cap, geography, or style buckets.
High quality bias: Unio seeks to own free-cash-flow generative businesses with high operating profit on operating assets (and its incremental improvement), exceptional business economics, skilled management, healthy company culture, and a relentless focus on value delivery to the end customer.
Long-term holding power: Unio invests with a rolling 5–7 year horizon. And turnover since inception has been approximately 15%. Advantages of truly investing with a long-term horizon include: 1) inefficient frontier where few investors can/want to venture, 2) fewer, better decisions/lower frictional cost, and 3) correct judgements are more durable to risk and produce multi-year return streams.
Balanced risk management: Unio runs a proprietary risk management system that aims to balance the portfolio across key factors and isolate the portfolio’s excess return to idiosyncratic drivers as much as possible (as opposed to macro/thematic drivers).
For inquiries, please use the website’s contact form or reach out to IR@uniocapital.com.
Unio Capital LLC (the “Adviser”) is an SEC-registered investment adviser. uniocapital.com is the Adviser’s only website, and the Adviser does not offer a mobile application. Neither the Adviser nor any of its personnel offers investment services via the Internet. Any website, service, or individual purporting to offer investment services via the Internet is not endorsed by, affiliated with, or otherwise permitted to do so by the Adviser. Communications from the Adviser will come from the uniocapital.com domain and/or through the Adviser’s Investor Portal. This website is not an offer to, or solicitation of, any potential clients or investors for the provision of investment management, advisory, or any other related services.