Where We Focus

Our efforts are focused towards the small/mid cap sector ( < $5B Market Cap) with a bias towards component and equipment companies. Influential private firms that compete with and supply these publicly traded companies are also covered.

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Core Themes Identified and Covered

  • Component Supplier Consolidation - In this decade, communication component suppliers faced an environment in which competitors priced to marginal cost and customers manipulated suppliers. This is coming to an end.
  • The Third PC - Most homes had a desktop as their first computer and added a second - a laptop. The Third PC will take shape in the living room and will deeply disrupt everyone from component makers to content producers.
  • Fiber as a Scarce Asset - Just like there isn’t more land in Manhattan, companies aren’t laying more fiber in some areas. The natural monopoly of fiber makes it a valuable asset.
  • FTTH Components and Equipment - A once in a centennial event is taking place, comparable to electrification and telephone. We track this fast moving and complex sector closely.
  • Carrier VoIP - Investors incorrectly believe economics is the raison d’etre of VoIP, but the transition from VoIP will be driven by superior functionality, not economics.
  • Wireless Backhaul - Copper T1/E1s won’t scale to meet the demand of widespread 3G adoption. How is the problem solved and who benefits?
  • Carrier Ethernet - Everyone knows it will happen but the question is when, who wins and who loses.
  • Telecom Hardware as a Commodity - If you believe telecom hardware will be a commodity in the long run (as we do), who will hold the position of adding the most value? Software? System integrators? Component suppliers? We seek to identify those who hold the commanding heights.