Patient capital for enduring enterprises.
Hafez Capital Management invests in profitable, well-managed businesses and US large-cap equities, guided by the discipline of value investing and a rigorous, quantitative approach to every decision.
A disciplined steward of long-term capital. We invest in companies with established track records and attractive returns on equity, and we largely avoid speculation.
Hafez Capital Management is a general-purpose investment holding company. Our mandate spans the public stock of large US corporations, software and cloud businesses, e-commerce, established retail operations and private small-business acquisitions.
What unites them is a single standard. We apply mathematical and statistical methods to the design and execution of our investments, and every opportunity must clear a rigorous set of criteria before capital is committed.
Three convictions guide every decision.
Value over speculation
We acquire shares and businesses priced below their historical valuation metrics, measured against earnings, sales and book value, and we avoid speculative methods.
Evidence over narrative
Mathematical and statistical methods shape the design and execution of every investment, from the first screen to the final commitment of capital.
Partnership with proven leaders
We back investor-friendly management teams with long records of success, sustainable buybacks and dividends, and a commitment to transparent accounting.
A broad mandate. One standard of quality.
We invest across public and private markets, in businesses we understand and can evaluate with discipline. Five areas make up our portfolio focus.
Public Equities
Common stock of US large-capitalization companies in the S&P 500 that meet every one of our criteria.
Software & Cloud
Cloud and SaaS companies with recurring revenue, demonstrated profitability and room for sustainable growth.
E-Commerce
Established online businesses with proven economics and consistent, sustainable growth.
Established Retail
Operating retail businesses with long histories, stable operating margins and a defensible position in their markets.
Private Acquisitions
Acquisitions of profitable, established small businesses, including SBA-approved transactions.
We commit capital only where the numbers, the management and the ethics all agree.
Nine tests. No exceptions.
Before capital is committed, every opportunity must satisfy each of the following criteria. An investment that fails one does not proceed.
Track Record
Leadership with a long history of success and consistently positive return on equity.
Investor Alignment
Investor-friendly management that returns capital through generous, sustainable buybacks and dividends.
Value
Shares trading below their historical price-to-earnings, price-to-sales and price-to-book ratios.
Balance Sheet
A low debt-to-equity ratio is mandatory.
Growth
Growth that is consistent and sustainable, not dependent on a single cycle.
Competitive Advantage
A durable advantage within its industry, what many investors call a wide moat.
Profitability
Profitable operations with high and stable operating margins.
Transparency
Clear, transparent accounting practices that allow independent verification.
Ethics
Companies with a history of unethical practices are avoided at all costs.
Considering the sale of your business?
Hafez Capital acquires established, profitable small businesses, including SBA-approved acquisitions. We welcome conversations with owners, brokers and intermediaries.
A proven operating history with stable margins.
Clean, verifiable financial records.
Including SBA-approved acquisitions.
Begin a conversation.
For acquisition opportunities, partnership inquiries or general correspondence, please contact the firm directly.