About
John Huber is the Managing Partner of Saber Capital Management, LLC. Saber manages separate accounts as well as a partnership modeled after the original Buffett Partnership fee structure. Investors in the fund pay no management fees, and Saber only gets compensated for returns that exceed 6% annually. John and his family have nearly all of their net worth invested right alongside Saber investors. Prior to forming Saber in 2013, John spent nearly a decade investing in real estate.
Investment Philosophy
Saber has a simple investment philosophy: in the long run, the best investments come from the best businesses. Our strategy is to carefully study and selectively invest in exceptional companies that we expect will compound value over the next decade. Great companies are unique, but often share five common traits: profitable unit economics with expanding returns on capital, growth tailwinds, a moat that widens as the business grows, talented people who are adaptable to change, and a product that pleases customers. Our investments tend to fall into one of two categories: 1) “unfinished” companies with significant growth potential that are reinvesting into their business; or 2) dominant moats that are currently collecting “monopoly rents”.
The value of any company comes from the future free cash flow it will produce. We’ve observed that the very best businesses can become significantly undervalued for two main reasons. Companies in “category 1” above often get undervalued because the market under-appreciates its durability and has a hard time valuing cash flows that will occur many years into the future. These “hidden moat” compounders can provide enormous value creation over time.
But even the largest, most well-followed companies in the world can get mispriced, even when their moat is obvious to everyone watching. This occurs because many market participants have a short-term time horizon. Fear of falling stock prices in the near term often leads to investment decisions that are driven by emotion and not valuation, and this creates routine opportunities in the stock market.
Saber’s main advantage is we are set up to capitalize on this “time arbitrage”. I started Saber with the idea that it would be a vehicle to compound my own capital at high rates over the very long-term. I have nearly all of my own and my family’s net worth invested alongside my partners. My single-minded focus is to produce world-class results for the partners who have already entrusted their capital to Saber. This provides me with three valuable advantages as a fund manager: I don’t outsource my thinking, I am able to take what I believe is the correct action even if unconventional, and most importantly, I have no career risk.
Saber is very lucky to have a high-quality group of investors who share my philosophy, and this allows me to maintain a truly rare and valuable long-term focus.
To read more about our thoughts on investing, please read our writing on the Saber Notes page and the Research page, where we post various articles and presentations.
If you are a prospective investor, or have questions about investing with Saber, please contact John Huber at john@sabercapitalmgt.com.