Lai Capital Management LLC

Lai Capital Management LLC is a state-registered, single-advisor investment adviser that manages discretionary separately managed accounts for individual clients and serves as the general partner and investment manager of a private limited partnership (Quantitative Value Strategies). The firm manages both retail separate accounts and pooled-investment interests, and tailors each separate account to the client’s investment policy statement.

The firm follows a value-oriented, quantitative approach that targets publicly traded securities judged to be trading below intrinsic value, using discounted cash flow and net-worth analyses as part of its process. Portfolios are managed with a long-term horizon and typically are concentrated—the private partnership is described as holding a relatively small number of major positions—while separate accounts are constructed to reflect each client’s risk profile.

What distinguishes the firm from many peers is its dual role as adviser to a private pooled vehicle and as manager of individual discretionary accounts, and the use of performance-based compensation arrangements for certain clients and for the partnership, which is uncommon among similar solo independent advisers. The firm’s principal brings a nontraditional industry background and quantitative trading experience, and the partnership structure and concentrated, less-liquid portfolio posture create different risk and liquidity characteristics than a typical broadly diversified advisory practice.