The Luxor Group is a Single Family Office that has an entrepreneurial DNA at its core. Throughout its history, the group has developed skills and experience in capital allocation, which has resulted in a corporate strategy focused on identifying differentiated investment opportunities.
For numerous years we were at the helm of managing and operating our businesses. With time, though, we improved our capacity to efficiently allocate capital, thereby reinventing our business model. As a consequence, we have invested our principal in groups, funds and firms that we admire and respect.
We recognize that continual improvement, simplicity, ethics and long term partnerships are the characteristics of our history as well as the values that will guide our future development.
Nothing motivates a person more than exceeding one’s self. To incentivize personal growth we have created an environment that stimulates individual development by forming long term relationships with our team members and creating a workplace with a challenging yet collaborative atmosphere.
We have learned that companies and assets that generate value over long periods of time are rare. We also profoundly admire people who can create winning cultures, who are passionate about their activities, who inspire honesty and who respect shareholders and investors.
Therefore, to find the best combination of peoples and assets, we nurture long term relationships, analyze profoundly a select few themes, and focus our time and resources in areas which we already have previous knowledge. We believe that this method will help us grow and evolve with time.
The purpose that connects all the elements of the Luxor Group (shareholders, team members, service providers and invested firms or funds) is to help realize the projects of the people involved with our history. For this purpose to be achieved we work to maintain our independence when allocating capital, and seek to motivate people on a path of continuous personal development.
Although, when investing we are not restricted or limited to any specific areas, we are currently invested in four different segments: Agribusiness, Real Estate, Equities and Income.
Within our invested businesses we can either act as controlling (or sole) shareholders or as minority investors in firms and funds. This flexibility allows us to maximize the value in businesses in which we have acquired differentiated operating skills over time and also to participate in projects and opportunities that are already excellently managed by current executives and managers.
We consider that the development of rural farmland in Brazil is an excellent form of capital preservation and an important source of long term value. Since the country has very strong competitive advantages in the agribusiness sector, differentiated operators can significantly benefit from this tailwind.
In the agribusiness space we act as controlling operators of a cattle ranching business in the north of Mato Grosso. With the help of competent and passionate professionals, we seek to develop a culture that combines rusticity and low cost production with deep analytical capabilities. By combining these factors, we are able to create and mold the best strategies for our assets over time. As a consequence, the results have been a constant operational improvement of the business and an increase of its participation within the Luxor Group.
Throughout our history, we have always been involved with real estate because the segment can generally offer investors efficient forms of capital preservation. Our experience, however, shows that the acquisition price and the income generated are essential factors in determining the value creating capabilities of investments.
As a consequence, we possess, and look for, real estate in strategic locations with either significant income generating capabilities or interesting entry costs and conditions.
To preserve our wealth in the long run, part of our capital is invested in inflation protected fixed income. Brazil, in this aspect, is still one of the few countries that offer an interesting dynamic of risk vs. return.
We also invest in a select group of hedge funds. We believe that these funds, when correctly selected, can be an interesting option for generating returns in the long run.
We believe that efficient capital allocation is a fundamental factor for the creation of long term value, and therefore, it is also an important element that we seek out in firms and funds.
The development of capital markets has given us the opportunity to participate as minority investors in excellent businesses, managed by competent executives and controlling shareholders.
When analyzing an investment we do not distinguish among listed companies, private firms or investment funds. We look to invest in opportunities in which we can recognize the same elements that guide our allocation of capital such as differentiated assets and managers and alignment of interests between minority and controlling shareholders.