Granite State Capital Management, LLC (GSCM) is a value-oriented registered investment advisor in New Hampshire with a focus, but not limited to, identifying opportunities among ignored and obscure securities which tend to be either undiscovered or misunderstood by the wider market. We focus in this area due to the high barriers to entry and low competition market environment leading to more inefficiently priced securities. Large hedge funds and institutions will often not be willing or able to look in these areas leading to higher inefficiencies, especially in this current market environment.
GSCM employs a long-term-only, value-oriented approach in mostly unconventional securities due to the higher nature of inefficiencies. While not confined to the approach – and we will seek value wherever we can find it – as long as capital continues to flow to index funds where the largest securities get a disproportionate amount of capital, we expect to continue to find the most value in mostly non-large cap and non-indexed securities.
Eric I. Schleien has been passionate about value investing from the age of 14 when he read his first book on Warren Buffett. Mr. Schleien has been managing his own capital since February of 2005. He now manages his investment partners’ money in the same way he manages his own – through Separately Managed Accounts. Mr. Schleien’s sub-account roughly mimics the accounts he manages with some exceptions for tax-exempt accounts. Mr. Schleien values having highly intelligent and rational investment partners over being an asset gatherer. Based off that principle, GSCM has an incentive structure for qualified investors which rewards outperformance overtime as opposed to just being paid for gathering more assets. Mr. Schleien’s inspiration comes from the early Buffett partnership in the 1960s as well as from Seth Klarman, Joel Greenblatt, and Charlie Munger.