Sajor / ˈseɪʤər / sAY-juhr /
SF-based family-run investment and advisory business.
About
Astute founders. Durable business models. Value Creation.
Sajor Capital, founded by Fred Seguritan, invests in public companies, private companies, real estate and other alternative assets. The San Francisco-based firm also does advisory work that includes business, finance and operations analysis, unit economics analysis, and customer cohort analysis.
Fred runs the firm and heads the investment decisions, together with his wife and partner, Demi Seguritan. The team also includes an investment analyst, Rose Chua, who is based in the Philippines.
Before transitioning into a family-run investment business, Sajor Capital was a long/short value oriented hedge fund where Mr. Seguritan served as Chief Investment Officer before it voluntarily returned outside capital in 2018.Prior to founding Sajor Capital, Fred was a co-founding partner at Partner Fund Management from 2004-2015 where he was was the global consumer sector head and served on the investment committee.Prior to PFM, Fred was a healthcare analyst at Andor Capital and at Goldman Sachs. Fred received his BA in Public Health from The Johns Hopkins University in 2000.
Fred has invested for over 20 years through multiple cycles, developing his knowledge base of businesses, his investment philosophy, and approach to research.
He is a growth capital investor, partner, and strategic advisor to a portfolio of private businesses. He has extensive industry knowledge, deep connections, and investment experience in the consumer industry encompassing public and private enterprises.
Our Approach
Our approach is to help businesses whether it is through mentorship, guidance, or providing another capital source.
We hope to use our two decades of investing experience--speaking with executive management teams of public and private companies--to provide unique perspectives on growing a business.
We want to work with founders / entrepreneurs and not against them and are willing to be a sounding board for ideas.
With our ties to the Philippines and Asia, we hope to contribute to developing economies that we feel connected with. Asian economies have so much potential to grow with new technologies given low penetration of e-commerce, but a fragmented, inaccessible banking system, among other problems, makes it difficult to grow businesses. We see that there is untapped potential. We want to see these countries prosper, grow, and even become a leader in innovation, and talent.
We have held some investments for a decade and are willing to be patient, long-term partners in growing cash-flowing private businesses whether it is through equity, preferred, debt, or other forms of structured financing.
What We're Looking For
We are looking for companies that can become future platforms within their segment or industry.
(What does it mean to be a platform business?)
We like:
Businesses that have (1) an established strong distribution network or (2) evidence that they can create one. An innovative product is great but proper distribution makes or breaks a business.
Businesses that have been growing organically the hard way and just haven’t had the capital to invest in paid advertising.
Profitable businesses or businesses with evidence that they can balance their growth and expenses.
We seek to understand businesses through the following metrics:
Contribution margins
Cohort data
Retention rates
Customer LTV
CACC
Asset intensity
Supply demand dynamics
For more, check out our Investment Thoughts or Contact Us
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Investment Thoughts
Our Approach to Investing
Posted on 2022-05-01
Our approach to investing--whether in common stocks, private businesses, real estate, or other alternative assets--involves seeking durable and competitive businesses with the ability to generate long-term value over its cost of capital, and run by quality management.
Durability is:
- Reason to exist
- Lasting barriers to entry
- Resilience to external forces
- Advantaged operating model
- Unique and desirable assets with high replacement costs
Value Creation is:
- Sales growth
- Margin expansion
- Asset efficiency
- Prudent capital deployment
- Sensible corporate action initiatives
Valuation:
Valuation must support our desired return on the investment when accounting for durability, value creation, management, and risk
Why We Value Distribution
Posted on 2022-05-01
We've mentioned on our What We're Looking For page that we like businesses that have an established strong distribution network or evidence that they can create one.While an innovative product is a good start, we think it is proper distribution that makes or breaks a business.What does it mean to have a strong distribution network?An established distribution could be evidenced by a strong social media follower base, solid email readership, access to the right distributors and retailers, among others.A start-up might not have an established distribution yet but there are ways to have an advantage in the space such as having the right relationships from previous businesses or experiences.A wide distribution network allows the business to have a large leads group in their sales funnel and it's only a matter of converting the leads into customers. This would be a good match to how we hope our capital to be used.
How We See Different Types of Businesses
Posted on 2022-05-01
(draft)- Growth businesses vs. others
- Asset intensive business vs. othersOnce the business is ramping, need to see positive unit economics that can either improve over time b/c they can increase avg price or duration or other ways to increase the LTV or have a healthy bufferBusinesses will see margins ramp and then erode after time. A businesses that is eroding their margins for several years will prob never make it b/c the competition will keep them down. So if businesses will see eroding margins over time b/c of competition, its important to see if they can grow the absolute gross profit dollars or increase velocity. And by doing so - doing it with less capital. Incremental return on capital. Create value by deriving a return over the cost of that capital employed.A business that has high asset intensity or high infrastructure costs - must have a moat that has a longer duration to pay for that intensity. In other words the investment must pay off to secure their business and allow the business to take share b/c of their size and investments. Even this can be diminished over time. There is a clock to everythingBelieve prices ultimately reflect expected cash flow streams in the future.
Cost of capital and what you pay for that income stream
Companies We Admire
Posted on 2022-05-01
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Companies We Invested In
Posted on 2022-05-15
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Our Favorite Reads
Posted on 2022-05-30
Our Favorite Reads
Posted on 2022-05-30
Capital Returns: Investing Through the Capital Cycle
What It's About:
Why We Like It:supply demand dynamics. Capital allocation. when to invest. when to pull back. and know when to pivot. there's no value if there's no growth. how do you create value and growth. duration bet. luxury of being diversified across styles. anti-fragile.
Antifragile: Things That Gain From Disorder
What It's About:
Why We Like It:When you're making an investment, what can the cash flow return. times when you want to extend the duration. and some times when you have not.We believe that small companies can adapt faster. we see this generational shift that's agile.but also like large companies.there's a portion of the portfolio for all those things.
Contact Us
We're looking to connect with both founders and investors:- exceptional founders with well-thought-out business models that could create value
- investors we can share ideas with and work together withContact us through the form below.
By submitting this form, you consent to the collection, generation, use, processing, storage, and retention of your personal data by the Company for the purposes described above.
This shall not constitute an offer to sell or the solicitation of an offer to buy, which may only be made at the time a qualified offeree receives a confidential offering memorandum, and only in those jurisdictions where permitted by law.
Sajor Capital Management, LLC