Lionstone Capital Management LLC

Lionstone manages privately offered fund-of-funds vehicles and a traditional hedge fund on a discretionary basis for institutional investors, high net worth individuals, insurance separate accounts, and endowments. The firm’s advisory clients are the pooled vehicles themselves rather than individual retail accounts, and investors must meet accredited/qualified investor standards described in each fund’s offering documents.

Investment work is split between manager selection for the Fund of Funds and direct security selection for the Hedge Fund. For the Fund of Funds, Lionstone conducts in‑depth qualitative and quantitative due diligence — including meetings with managers, operational reviews, and statistical screening for risk/return and correlation fit — while the Hedge Fund pursues a long‑biased, concentrated, fundamental value approach with limited shorting and the use of derivatives when appropriate.

What is distinctive for a manager of this type is the emphasis on selecting and allocating to other advisers: Lionstone documents an extensive manager selection process and allocates material assets to underlying Portfolio Managers (including affiliated funds), with fee waivers at the fund‑of‑funds level to address duplicative charges. The brochure also highlights the Funds’ potential exposure to strategies that may use leverage, derivatives, futures/commodity instruments and reliance on financial counterparties, and describes operational and cyber‑security due diligence and trading‑related policies Lionstone applies to those manager relationships.