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Concentrated Portfolios / Exceptional Businesses

Seek the enduring source.

A San Francisco-based investment firm focused on resilient businesses with competitive moats and disciplined management.

The foundation of resilient capital.

Lobos Creek is the last natural, free-flowing water source in San Francisco. This resilience inspires our investment philosophy: identify and invest in businesses that we believe possess uniquely powerful competitive positions.

We prioritize independent research and intellectual rigor over comfortable consensus. By investing in essential businesses, we construct portfolios that we believe are designed to weather economic cycles and compound capital over decades.

“In our view, investing is simple, but not easy. That is why our firm is structured to minimize distractions, so we can focus on what we are convinced drives long-term value for our clients — owning a concentrated portfolio of exceptional businesses acquired at sensible prices, and having the discipline to let them compound over time.”

Matthew Gordon, Founder

Investment Strategy

Our goal is to compound capital through disciplined concentration, targeting rare investments that we believe offer both high returns and low risk of permanent loss.

Economic Moats

We invest exclusively in what we believe are competitively advantaged businesses. We seek wide economic moats—driven by network effects, high switching costs, or efficient scale—that protect consistently high returns on invested capital.

Sustainable Growth

Recognizing that long-term returns typically follow expanding fundamentals, we target companies that we believe are positioned to compound intrinsic value and earnings per share over decades.

Proven Leadership

We believe poor capital allocation can permanently impair shareholder value. We work to identify management teams that have demonstrated operational excellence and a track record of prudent capital deployment.

Margin of Safety

Even an exceptional business can become a poor investment at the wrong price. We require a margin of safety, investing only when an asset trades at a discount to our assessment of its intrinsic value.

Portfolio Construction & Risk

We define risk not as short-term volatility, but rather the probability of permanent loss. We try to mitigate this risk through concentration in exceptional businesses, rigorous analysis of overlapping exposures, and strict avoidance of both portfolio-level leverage and highly indebted operating companies.

Target Positions 8 – 10
Time Horizon 5+ Years
Portfolio Leverage None
Economic Moats Wide
Our Team

Intellectual Capital

We are building a firm grounded in independent thinking, deep fundamental research, and a long-term perspective.

Matthew Gordon, CFA

Founder, Analyst & Portfolio Manager

Matthew directs the firm’s investment strategy, drawing on over two decades of industry experience. Prior to founding Lobos Creek Investors LLC, he served as a Senior Equity Analyst and Portfolio Manager at Summitry LLC, where he was a member of the investment committee and launched the firm's concentrated equity strategy. He holds an MBA from Columbia Business School and a BA in Computer Science from Amherst College.

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We are focused on building lasting relationships with individuals, families, institutional investors, and family offices. To explore our investment options or discuss potential partnership opportunities, please contact us directly.

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