Assessing Capital Allocation Prowess with Kevin Fogarty and Brent Robinson, Value Creators Capital

Jan 29, 2025

Brent Robinson, co-founder and partner at Value Creators Capital with deep public equity and portfolio-construction experience, and Kevin Fogarty, co-founder and portfolio lead known for capital-allocation frameworks, discuss assessing capital allocation and durable moats. They cover portfolio concentration, mid-cap compounders, watchlist management, proprietary scoring, and why patience and alignment matter.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Judgment Over Information Sources

Their edge is analytical judgment, not informational advantage; they use common data sources (S&P Capital IQ, Bloomberg) and forecast at least five years forward.
They quantify qualitative factors like capital allocation skill into proprietary measures.

INSIGHT

Quantifying Capital Allocation Over Decades

They built a proprietary capital allocation score by analyzing roughly 20 years of historical decisions to judge a management team's allocation skill.
That historical measure informs but is adjusted for changes in management and alignment of interests.

ADVICE

Position Size Requires Moat Allocation And Value

Size positions by combining moat strength, capital allocation quality, and valuation; only increase weight when all three align.
They refuse to initiate positions when a company is overvalued relative to their intrinsic per-share estimate.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

My guests on the show today are Brent Robinson and Kevin Fogarty of Value Creators, a US-focused public equity firm that has a long track record of success. After working together for a number of years at Dupont Capital Management, Brent and Kevin helped found Value Creators in 2023. When I heard about the proprietary process the firm uses to assess capital allocation, I knew I had to have them on the podcast. In this fascinating conversation, we covered:

The long history the Value Creators team has together;
The circumstances surrounding the founding of the firm;
How they assess capital allocation;
Portfolio construction, including concentration; and
The process they use to whittle down their investment universe.

For more information about Value Creators Capital, please visit: https://www.valuecreatorscapital.com/

This episode is sponsored by: Daloopa

Earnings season—two words that can make any analyst’s heart race. The late nights, the endless manual updates, and the constant pressure to deliver timely, accurate insights—it’s overwhelming. But it doesn’t have to be.

With Daloopa, you can revolutionize the way you work. Their automated model update solution takes the manual effort out of the equation, delivering complete, accurate, and real-time financial data at the click of a button. No more endless spreadsheets. No more scrambling to keep up.

Daloopa empowers you to initiate coverage faster, refine your investment theses with confidence, and focus on what really matters—identifying key opportunities and delivering actionable recommendations that drive results. Plus, with fully auditable data, you’ll always have the confidence that your insights are backed by accuracy.

So, if you’re ready to get ahead of earnings season and take your analysis to the next level, visit daloopa.com/comp today. Daloopa—because your time is too valuable to spend it on data entry: https://go.daloopa.com/comp

Listen to all Compounders Podcast episodes on either Apple or Spotify

iTunes: https://apple.co/3xlUvPY

Spotify: https://spoti.fi/3jxkxLl

All opinions expressed by your hosts and the podcast guests are solely their own opinions and do not reflect the opinion of SNN or its affiliates. This podcast is for informational purposes only, it is not investment advice, and should not be relied upon for any investment decisions. We are not recommending the purchase or sale of any securities. The hosts and guests may be beneficial owners of the securities discussed. You should not assume that the securities discussed are or will be profitable.