When we're short, we look for deteriorating industry conditions, company-specific fundamentals at risk, and liquidity issues. We will short a good company, even a cheap company, if we think reality will fall short of current expectations. The best way I've learned to short is by making mistakes on the long side in value traps, for [...]

We prefer to avoid public confrontations with management for three main reasons. First, we're a young enough company that I don't want to run the risk of our entire reputation being tied to a public battle with this or that company. Second, we've greatly benefited as investors from forming partnerships with our portfolio companies. We [...]

In periods of rapid change in liquidity and economic conditions, the odds that we're simply wrong about our estimates of companies' near-term fundamentals are higher than average. As a result, we're more focused then on maintaining flexibility through cash levels and buying power and in sizing our bets according to the medium- to lower-confidence environment [...]