Investment Process

Five-Layer Analytical Process

Every candidate passes through Five Sequential Layers: L1 thru L5
Each layer adds rigor — and any layer can eliminate a candidate. Narrative never substitutes for evidence.

L1

PCBO Classification

Classify the company into one or more PCBO engines before any other analysis. Companies that cannot be clearly mapped are eliminated immediately.

Scout + Atlas

L2

Macro AI Catalysts

Validate alignment with structural AI trends: CapEx cycles, regulatory shifts, adoption curves, and competitive dynamics. The thesis must connect to real, durable market forces.

Scout

L3

Company & Competitive Position

Map market share trajectory, moat durability, pricing power, and switching costs. Determine whether the company is a leader, challenger, or niche player.

Scout + Vera

L4

Bottom-Up Fundamentals

Revenue growth, margin trajectory, cash flow, balance sheet, and valuation vs. growth. Score below 2/5 caps composite at 2.99. Strong AI positioning never covers weak economics.

Vera - 30% Weight

L5

Bottom-Up Fundamentals

Management quality, AI strategy credibility, and execution track record. Absolute veto authority — a weak leadership score blocks the investment regardless of L1-L4.

Sage - VETO POWER

CRITICAL SAFEGUARDS

Sage L5 veto is absolute — blocks any investment regardless of L1–L4. · Vera below 2/5 caps composite score at 2.99.

Universal Scoring Framework

Every candidate receives a composite score on a 1–5 scale across five weighted dimensions — each owned by a specific team member with defined authority. Applied uniformly to every PCBO engine.

SCORING DIMENSIONS
D1

25%

Thesis Alignment

Owner: Scout

PCBO engine fit, AI value chain positioning, structural demand thesis, macro catalyst validation

D2

30%

Fundamentals

Owner: Vera

Revenue growth trajectory, margin profile, cash flow quality, balance sheet, valuation vs. growth

D3

20%

AI Leadership

Owner: Sage + VETO

CEO vision, AI strategy credibility, talent acquisition, governance, execution track record

D4

15%

Portfolio Fit

Owner: Atlas

PCBO concentration, correlation to existing positions, engine balance, optimal position sizing

D3

10%

Catalyst Urgency

Owner: Pulse

Near-term catalyst calendar, sentiment shifts, earnings timing, macro risk events, entry window

COMPOSITE WEIGHT DISTRIBUTION