Who Are We?
Kaufman Kapital is a family office, based in Puerto Rico, that invests in publicly traded small cap and microcap equities in both the U.S. and International markets.
Our track record speaks to the effectiveness of our strategy and our commitment to delivering superior investment results.
Led by Daniel Kaufman, Kaufman Kapital has achieved an impressive average annual capital compounding of 60% over the past five years.
This remarkable achievement is a testament to our rigorous investment methodology and the deep entrepreneurial experience that drives our decision-making processes.
Our methodology involves a comprehensive analysis of market conditions, detailed evaluations of company potential, and continuous monitoring of our investments. We pride ourselves on our ability to adapt to changing market dynamics while maintaining a clear focus on value creation.
We aren’t constrained by any investment committee mandates (i.e. arbitrary concentration limits or sector diversification rules) and are constantly questing for overlooked, misunderstood, and mispriced securities. We are selectively contrarian and enjoy rolling up our sleeves and engaging with management teams.
Investment Process
At our core, we are value and growth at a reasonable price (GARP) investors that utilize a number of strategies including turnarounds, discount to tangible net value and early identification of inflection points.
Our investment strategy is not only about securing undervalued opportunities but also about avoiding the pitfalls of groupthink. We focus on small and microcap companies where we can leverage our expertise to yield high returns. Our approach is characterized by a thorough analysis and strategic capital allocation, ensuring each investment aligns with our long-term vision for growth.
Our team is constantly looking for information disconnects created by the lack of participation of investors in the microcap universe. While there are around 10,000 microcap stocks in North America alone, we’ve created a repeatable process that identifies stocks that meet the criteria needed to increase the chances of success.
Kaufman Kapital also makes direct investments (both common stock and non-toxic convertible debt) in small and microcap companies when the right and timely strategic capital can unlock huge value to the enterprise. Normally, however, we only make these investments when the management team invests alongside us.
One of our underlying goals is to ensure that shareholders in the companies we invest in will share in our success.
By giving quality companies friendly alternatives to access capital, our approach is filling a need that is currently unmet by traditional mechanisms.
Portfolio
Once we’ve reached a level of conviction we often make meaningful passive or active investments.
Since launching Kaufman Kapital, Daniel has filed three 13Gs or 13Ds: Harrow, Inc. (HROW), BranchOut Food Inc. (BOF) and i-80 Gold Corp. (IAUX).
- Schedule 13 G – Harrow, Inc. (11/24/2023):
- Schedule 13 D – BranchOut Food Inc. (10/17/2024)
- Schedule 13 G – i-80 Gold Corp. (11/14/2024)
All three of these investments have compelling growth plans and are led by CEOs who have invested significant portions of their net worth in their companies, showing the ultimate level of conviction.