Willow Creek Capital Management
@willowcreekcapitalmanagement
Willow Creek Capital Management is a privately owned hedge fund investing firm. The company was founded in 1994 and is based in Greenbrae, California. Most of the investsments of the company are in the public equity markets of the United States.
Willow Creek Capital management equity portfolio typically include stocks of small and medium capitalized companies. They employ both long and short equity strategy, for example the 'Jones Model' to obtain and keep low net exposure and while at the same time insulating company's portfolio returns from the markets' volatility. Using this strategy, company's returns are driven by the “alpha” exposure created from management's selection of the stock rather than being driven by large, unhedged and leveraged long exposure. This strategy has been particularly true with firm's short-stock selection and portfolio construction of Willow Creek Capital Partners.
In the management of working capital, for Willow Creek Capital Management it is extremely important to establish strategies (conservative, moderate and aggressive) and to establish a mechanism for controlling cash, inventories, receivables and short-term liabilities. A conservative strategy implies holding a large amount of money, tradable securities and inventories, while aggressive strategies for the amount of money, marketable securities and inventories are minimized. Aggressive policy, on the one hand, increases profitability but also the business risk itself.
Under the security conditions (predictability of sales revenue, costs, receivables), the company should keep minimal working capital so as to minimize costs while uncertainty of the environment increases the need for working capital (security reserves) leading to increased costs and greater external financing needs.
Willow Creek Capital management equity portfolio typically include stocks of small and medium capitalized companies. They employ both long and short equity strategy, for example the 'Jones Model' to obtain and keep low net exposure and while at the same time insulating company's portfolio returns from the markets' volatility. Using this strategy, company's returns are driven by the “alpha” exposure created from management's selection of the stock rather than being driven by large, unhedged and leveraged long exposure. This strategy has been particularly true with firm's short-stock selection and portfolio construction of Willow Creek Capital Partners.
In the management of working capital, for Willow Creek Capital Management it is extremely important to establish strategies (conservative, moderate and aggressive) and to establish a mechanism for controlling cash, inventories, receivables and short-term liabilities. A conservative strategy implies holding a large amount of money, tradable securities and inventories, while aggressive strategies for the amount of money, marketable securities and inventories are minimized. Aggressive policy, on the one hand, increases profitability but also the business risk itself.
Under the security conditions (predictability of sales revenue, costs, receivables), the company should keep minimal working capital so as to minimize costs while uncertainty of the environment increases the need for working capital (security reserves) leading to increased costs and greater external financing needs.