Interview #106 : Dave Waters (Tactile Fund LP / Alluvial CM)
Companies with extraordinary physical assets
For this issue we have the pleasure of interviewing Dave Waters from Alluvial Capital Management to discuss his new venture Tactile Fund LP.
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Hi Dave, thanks so much for taking the time out to do this interview.
The last time we interviewed you was back in February 2021, so it’s great to have you appear again. This time we want to dive into the new fund you’ve just launched.
Can you provide readers with an overview of the Tactile Fund LP? What makes it different from Alluvial Fund?
Great to be back! Tactile Fund LP is dedicated exclusively to long-term investing in global companies with extraordinary physical assets.
Specifically, physical assets that are difficult or impossible to replicate, that grant the owner some sort of permanent competitive advantage.
These are assets that allow companies to satisfy some fundamental, unchanging human want or need, and the infrastructure supporting them.
Alluvial Fund has always been more catalyst-based, happy to invest in turnarounds and special situations. With Tactile Fund, we are investing in companies that are already profitable and thriving and nearly certain to be significantly more profitable 10 or 20 years from now.
We want to own these companies for the duration and benefit from the economic value that accrues to their superior assets. Tactile Fund is open to accredited investors only and has a long lock-up period to assure alignment.
Why did you decide to launch this fund now?
Is there something about the current economic environment that makes you want to have more capital in these types of companies and themes?
I noticed you mention ‘currency debasement’ and ‘accelerating technological change’ in your investor deck.
I have wanted to do a vehicle like this for quite some time.
For more than a decade now, I have been spending my days poring over the thousands of public companies in the world, and some have always stuck out to me for their uniquely attractive assets.