About ITUS

Investing in growth in the public markets

Research Center

Study our investing style and process at length

Owner's Manual

Owner's Manual

We are a fiduciary of your capital. Your understanding of what we do and how we will approach it is a critical element in enabling us to attain our goal. The Owners Manual helps achieve this....

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Following our previous episodes on the buying and exposure process in evaluation of businesses, this week we aim to provide a detailed explanation of the third step ALLOCATION process. When incorporating a business into our portfolio, we carefully assess the anticipated risk in short-term cycles and determine different position sizing: starting (2.5%-3.5%), base (4.5-6%), or fully scaled (8-10%).

Our research team diligently studies the companies we invest in, dedicating significant time to understanding various touchpoints such as distributors, retailers, agents, channel partners, and even ex-employees, in order to gain insights into the organization’s culture. As we gain more confidence in the management and observe that capital allocation is on track, we transition the allocation from a starting position to a base position. Conversely, if we identify any signs of the company’s structural pricing power or edge weakening, we may downsize the allocation from a fully scaled or base position to a starting position. Taking into account the pricing power of the business and the prevailing market dynamics regarding supply and demand, we make appropriate adjustments to the position size. This allows us to either increase or decrease our exposure to the business as needed

We at ITUS do not follow a MODEL portfolio approach, where investor irrespective of the time when they invest in will have the same allocations . Each client’s portfolio with us is unique, with the weights of each business adjusting based on the investor’s entry time.

In the upcoming episodes, we will discuss on our EXIT process. We are excited to explore more engaging topics that will enhance your client interactions. Wishing you a delightful weekend until then.


If you like to read the entire episodes of our “Weekly Enlightenment” please click the link below:

Weekly Enlightenment Archives – ITUS Capital

As a part of our ongoing commitment to keeping you informed, we remain dedicated to our SIP program, providing investors with a convenient avenue to regularly enhance their portfolios. We encourage you to explore the benefits of this program for your clients. If you require more details, please don’t hesitate to reach out to your dedicated relationship manager at [email protected].