Tera Capital is generating wealth from smaller companies
The wealth created by growing a small business into tomorrow’s “blue chip” is legendary. The philosophy
behind these market successes is exactly what drives the Tera Fund Family – we believe that the hard work and
diligence associated with investing in small capitalization companies (under $500 million) can be richly
rewarded. Our Fund Family was created to offer sophisticated investors the opportunity to participate in these
rewards across a diversified risk/return spectrum.
Why Smaller Caps?
Securities of smaller cap companies are typically tagged as “higher risk” due to a variety of operating and
market factors; the “reward” for this risk is a higher return opportunity. As a result of this risk/reward tradeoff,
investments in successful smaller companies have been able to produce superior investment returns over
time. In today’s world of massive investment funds, companies which can grow their market caps are accorded
ever-increasing market values as more funds are able to buy them.
Succesful small cap investing requires separating winners from losers. As the lead portfolio managers of the
Tera Funds, Howard Sutton and Lyle Stein bring over 50 combined years of investment and operations experience.
By focusing our knowledge on a market segment that is distinctly under-analyzed, and using a discipline
honed over decades of public and private company expertise, Tera has a track record of achieving superior
returns for its clients in markets both good and bad. At the heart of our discipline is a commitment to
“know our companies”: for each holding, we examine the Management Team, the Strength of the Intellectual
Property, the Market Oppurtunity, the Value and the Liquidity of the investment. This approach has led to a
track record of demonstrated superior performance.