Linus Capital | Multi-Strats @ Play

"Our strategies capitalize disruptive innovation, exponential trends and dislocations in the market."

We witnessed the bursting of the dot-com bubble at the start of this century, our investments survived the 2008 Great Financial Crisis (GFC), we piled in early, just rode the financialization of housing and our trading strategies generated returns of 22.7% during the Tech Wreck 2022. Linus Capital has doubled its assets over the last three years, with all our growth fueled exclusively by performance.

Investment Model

Multi-strats @ play

Our bets range from tech equities to Chinese equities to prop investments in the US and India to startups and seeding investment strategies. A $10,000 investment in Linus Capital seed pool at its launch is worth about $290,000 now.

Investment Model

Alternative Investments

We add uncorrelated alpha investing across asset classes -- technology, real assets, and emerging markets.

Capture Alpha

Our models bet on all the right horses with a focus on the highest conviction ideas optimized to capture alpha.

Platform Investments

Placing platform bets, making add-on investments, and turbocharge growth is a key peg of our investment strategy.

Harvest & Grow

We pair investments by matching cash flow from real-assets to build moonshots that can generate higher alpha.

Growth course we had set for the challenging '20s

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Triple AUM

Scaling newly seeded investment vehicles will be the key driver of our growth.

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Growth Pockets

Dislocations in the market and technology driven innovation are pockets of our focus.

We are an owner-operator that has been investing proprietary capital for the last 16 years. With twenty plus year investment horizon, we take a measured, aggressive approach to creating generational wealth. We have proved that we can do well in disparate markets, economic cycles, and multiple-asset classes. Investing across asset classes, and geographies, and riding out economic cycles has made us a well-rounded asset allocator.

Our success comes from a unique way of uncovering overlooked gems, the ability to pick spots where we have unique and differentiated perspectives and generate alpha in a smaller part of markets. We are constantly challenging ourselves and pushing to grow as an investor. With an engineering and entrepreneurial background, we take a scientific approach to investing. We put risk management at the forefront of our investment process.

The most successful idea in investing is now simply strength in numbers. As we seek to expand, we are in the process of seeding two new investment vehicles that leverage our multi-decade experience in technology, real estate, and investing. We will open up these vehicles to outside money from partners who buy into our investment strategies and enable us to do things at scale.

Tech Wreck 2022 vaporized trillions of dollars as the economic turmoil reverberated from Wall Street to Main Street to Silicon Valley. Hedge Funds and VCs with their “buy growth” approach have burnt billions and proved as an inefficient model of capital allocation. The investment strategies of a decade of giddy exuberance will not work and the era of inflated valuations and easy returns is over.

Our faith in the Digital economy’s long-term trajectory is unshaken in spite of the tech rout. DGT Alpha is a multi-strategy platform applying dynamic and systematic strategies to the next era of the digital economy. Our strategies focus only on the highest conviction ideas, make more dispersed bets, and avoid crowded and volatile pockets.

Next year is a perfect setting for DGT Alpha strategies, with high-orbit tech stocks hurtling back to earth. DGT Alpha models de-risk’s technology bets by being very selective in companies with solid underlying economics, instead of lower-margin businesses posing as tech companies, and gather them into an optimized alpha-generating portfolio.

01. Investment Vehicle Boom Town is a newly seeded investment vehicle to bolster our property bets. Boom Town is our first vehicle employing outside capital. We plan to seek out capital on a deal-by-by-deal basis from investors that are aligned with our strategies.

02. Investment Strategy We have been making prop investments for two decades in both the US and India. Our investment strategy is shaped like a barbell, with low-risk credit strategies at one end balanced with aggressive and opportunistic bets on the other end.

Realto was our first real estate investment vehicle with investments in both the US and India. Realto has made investments in Austin, Dallas, Phoenix, West Palm Beach, and Las Vegas in the USA. Realto's India investments are in Bangalore, Goa, Hyderabad, and Warangal that include infrastructure & natural resources bets.

June 2016 Realto exits Dallas investment at 6x of invested capital. Holding period: 13 years

March 2016 Realto sells its Las Vegas investment holding through the great recession. Holding period: 11 years

June 2012 Realto sells its investment in West Palm Beach after it recoups its investment. Holding period: 6 years

March 2007 Realto sells its land investment in Hyderabad at 9x of invested capital. Holding period: 4 1/2 years

September 2006 Realto exits a lease-purchase in Austin with an ROIC of 50%. Holding period: 15 months

April 2005 Realto flips its investment in Pheonix with a return of 3x invested capital. Holding period: 30 days

25

Proprietary Funds(%)

50

Successful Exits

35

Companies Seeded

16

Years of Investing

Income Generation

We enjoy liquidity freedom with a fully unlevered real-estate portfolio and no near-term liability. The float our assets generate acts as a funding source and covers our operating expenses. Our income generation strategies include allotments to fixed income, real estate, and debt financing.

Ten Baggers

Our investment strategies have generated a series of ten baggers. Our ability not to swing for countless pitches and wait for the right opportunities to swing for the fences combined with patiently waiting for our strategies to play out has generated multiples of invested capital.

Moonshots

We seek out excess alpha by investing house money in emerging opportunities that are generational bets. We satisfy our entrepreneurial, operational, and intellectual curiosity by executing the proprietary framework “CIGAR” to grow our investments.

Passion Investments

Linus Capital has a dedicated capital pool for the benefit of society from its inception, a key part of our investment ethos. A passion investment has given us the highest multiple expansion and promoted social good as well thus empowering us to double our commitment to impact investing.

Sunny Burra

A technology executive turned investor has been investing proprietary capital for the last 16 years. Sunny has generated huge wins for Linus Capital, placing bets ranging from tech equities to Chinese equities to prop investments in the US and India to startups and seeding investment strategies. Sunny is expanding his focus to create a new investment vehicle employing outside capital to manage alternative assets that capitalize on opportunities in technology, financial services, and real estate.

"Our strategies capitalize disruptive innovation, exponential trends and dislocations in the market."

Investment Model

Growth course we had set for the challenging '20s

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02

25

50

35

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Our Plays