About the Firm
Stanley Capital was founded in 2010 to provide a limited number of families and advisors access to a proven value equity investment program. We manage a private investment partnership exclusively for qualified investors and are a registered investment adviser with the U.S. Securities and Exchange Commission with about $450 million in assets under management. The minimum investment for qualified investors is $1 million.
Founder & Managing Partner
Bret Stanley is the Founder and Managing Partner responsible for all investment management decisions. He has more than 30 years of investment experience executing a highly disciplined research-intensive intrinsic value investment program with distinguished results. Bret has been featured in a variety of publications including the book by Kirk Kazanjian, Value Investing with the Masters.
Previously Bret was Chief Investment Officer and Senior Portfolio Manager of the Invesco Value Equity group, which he founded in 1998, growing it to $15 billion following significant outperformance versus peers and benchmarks. Prior to Invesco he was a portfolio manager at Van Kampen and Gulf Investment Management, and a sell-side analyst at Lovett Underwood Neuhaus, Rotan Mosle, and Sheppards in London.
Bret received a B.B.A. in finance from The University of Texas at Austin and an M.S. in finance from the University of Houston. He is a Chartered Financial Analyst.
Lanny Sachnowitz is a Managing Director primarily responsible for investor relations and has more than 30 years of investment experience, previously as Chief Investment Officer of the Invesco Growth Equity group. His more than 20 years at Invesco AIM included roles as analyst, trader, and Senior Portfolio Manager on several of AIM’s flagship funds—AIM Charter, AIM Constellation, and AIM Weingarten—contributing to Barron’s recognizing AIM as the top performing fund firm of the 1990s.
Lanny has a B.S. in finance from the University of Southern California and an MBA from the University of Houston.
Our portfolio provides additional exposure to the most proven long-term investment strategy—value equity investing. We combine the advantages of rigorous fundamental research and the tenets of deep value investing with a tax-efficient long-short portfolio design.
The strategy aims to provide three ways to win:
- Long undervalued high-quality companies
- Short overvalued stocks with inflated expectations
- Void the mediocre return prospects of the rest of the market
The chart above illustrates the return potential of being 130% long the cheapest 100 stocks in the S&P 500 and 30% short the 100 most expensive stocks, providing the same net exposure (100%) as the total S&P 500 Index. Over the past 40+ years, the 1.6x additional exposure to undervalued stocks translated into about 20x the amount of wealth, excluding fees, expenses, and structural tax advantages.
Rider by Ryan Borne
An uncommon alignment of interests is achieved by our incentive fee structure, personal investment, and scale constraints. A limited amount of capital is invited to invest alongside our own capital at a 0% management fee plus 20% of any profits. We charge no fees if we don't make you money.
The tax advantages of our strategy are material, predictable, and validated by our low tax burden and academic research. Despite substantial gains, our investors have paid virtually zero taxes since 2011 due to the natural tax efficiency of our strategy, portfolio architecture, and a systematic effort to use market volatility to minimize income taxes.
The Underside of Water by Ryan Borne
Despite the empirical evidence, very few strategies combine a prudent long-short value approach with high net exposure, tax management, reduced fees, and partnership ethos. Our portfolio composition is substantially different from the S&P 500 Index and will intentionally have a different return profile. It offers distinct diversification benefits to passive equity, growth strategies, and both long-short and long-only value strategies.