On a warm, June summer’s day in 2017, I opened my first-ever book on investing: One Up on Wall Street, by Peter Lynch. At a time in my life where I ached for purpose and passion, Peter’s words provided me with the salvation I craved. Awoke to the intellectually stimulating world of capital markets, I hung onto every word: reading, and rereading, as if I had been reborn.

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Dozens of books later, an amateur blog, and a “lead with your work” attitude, I landed my first job as an equity analyst at Tiny, in the fall of 2018. Tiny was the best employer I could have hoped to have as a budding analyst. Andrew Wilkinson and Chris Sparling, Tiny’s co-founders, have a preference for delegation, so instead of mentorship, they gave me the proverbial equivalent of a trowel and a bottle of water, and sent me into the desert with a friendly, “Good luck!” 

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Had Andrew and Chris taken a different approach, I am not sure that I would be writing this letter, for what they prescribed was solitary introspection. Unlike the typical firm where analysts are given assignments and clear instruction, I was left to figure out how to add value to Tiny and to develop as an analyst by myself. 

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Fortunately, I had spent the entire previous year wrestling with my emotions as I contended with the volatility of trendy stocks, so I was familiar with the act of self-reflection. My turnaround began when I decided to write an entire book on all the mistakes I made during my first year investing, titled, The Halfwit Crustacean: Inside the Mind of a First-Year Investor. Taking seriously Charlie Munger’s advice for an investor to improve their behavior by admitting when they act like "a complete stupid horse’s ass,” I put my mistakes on display for all to see.

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By the time Covid-19 stuck markets in 2020, my halfwit days were numbered, as I proceeded to purchase shares of The Keg Income Trust, Aritzia, and 4Imprint Group in the depths of the crash. Over two years of self-driven, behavioral reconditioning, and my prize was a taste of what it feels like to have volatility and uncertainty as friends, and not as enemies. 

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As I advanced further in my career, I became increasingly aware that the primary determinant of consistent, long-term outperformance in capital markets is not achieved by one’s academic pedigree, nor by one’s IQ, but by one’s behavior. Behave commonly, and achieve common results. Behave uncommonly, and increase the probability of differentiated success. 

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Regrettably, our industry is becoming increasingly common. Over the past 30 years, passive and quantitative investing strategies have gone from being a market afterthought to holding a majority share of global funds. Wall Street's "Give up and get rich" mantra has had far-reaching effects, not least the steady decline of high quality, differentiated analysis. The practice is simply endangered.

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Inspired to up the market ante, I made the decision to start publishing my research in the first quarter of 2024. I did not know exactly what would happen, but I knew that if I brought a high standard of research to the industry, and put myself intellectually at-risk, that I would at least further the quality of my own work.

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The first report I published was on Hingham Institution for Savings, a small, owner-operated regional bank based in Hingham, Massachusetts. You may find a free copy on the "Sample Reports" page of Maiden’s website. My research involved the comparative analysis of Hingham to 138 banks in the SPDR S&P Regional Banking Index, and the construction of a dataset that contains over 3,600 data points, most of which were manually derived. 

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After its publication, my report caught the attention of writer and investor Swen Lorenz, who promptly reached out to ask if I would be willing to do an interview, and if he could write an article on my report. I agreed, and was pleasantly surprised when Swen titled the piece, “Hingham Institution for Savings, or How to Analyze Stocks.” I was on the road driving home from Berkshire Hathaway’s annual general meeting, and Swen’s praise felt cosmic. As I overlooked the Columbia River from a rest stop, it felt like the universe had set my course.

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To give thanks for Swen's generosity, I offered to conduct a research project of his choosing, and he was quick to respond: He wanted a land report. (Again, see Maiden's sample reports for a copy).

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After mulling through the reports of 753 companies, I landed on Ingles Markets, a family-owned chain of supermarkets based in Asheville, North Carolina. Through nearly 1,000 county tax record searches across 400 counties, I built a dataset with over 10,000 data points on Ingles' property and business. My findings were beyond the market's common understanding, with owned acres identified exceeding those disclosed in Ingles’ reporting by 2,170%.

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The report was a hit, and the response I received was overwhelmingly positive. Shortly after, I was interviewed by Edwin Dorsey on Sunday Ideas Brunch. Once more, the market’s response was clear: In a world dominated by quantitative and passive investing strategies, my research was not merely desired by the market, but needed. 

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At the time, I was two weeks from starting an analyst job with a reputable firm based in Charlotte, North Carolina. I called up the CIO, and told him that I was grateful for his trust, but that I was going to start my own research firm instead. 

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As such, today officially marks the day that Maiden Financial opens its doors to the market. If you are reading this letter, it is because I am seeking founding members who may be interested in subscribing to my vision for Maiden.

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That vision is a library, full of long-form, archeological exposés that may eventually comprise one the market's most unique and valuable collections of analytical works. In doing so, my hope is to attract a community of long-oriented professionals who share a similar passion for the art of investing, and care deeply about its preservation.​

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Members may expect Maiden’s first report to be published by Sunday, January 19th. I suspect that reports will range, on average, between four and twelve weeks, although timing may vary depending on a report's scope, format, and urgency. However, under no circumstances will report expediency ever be favored at the expense of quality in the course of Maiden’s operation. 

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The aim of every report published will be to provide investors with a high degree of information and insight on marketable securities beyond what is commonly available. Research will be global in scope, but will favor countries governed by a strong rule of law. Moreover, given that Maiden’s service is oriented towards professional investors and high net worth individuals, the minimum free float of analyzed companies will be $250MM USD. Should members disagree with the minimum prescribed market capitalization, I may put its amendment to a vote. 

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As a disclaimer, there may be times where actionable ideas are difficult to find. Under such conditions, I will favor the analysis of companies that I believe to be attractive for prospective ownership. Companies favored in such “latent” reports may include those that are cyclical with interest rates, supply and demand, and/or economic conditions that appear to be at, or approaching, their cyclical highs. ​

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With that said, your sponsorship today marks the start of Maiden as a fully autonomous and self-directed research firm, with myself as its founder. For the first year of Maiden’s operations, the number of seats issued will be limited to 25 persons, for two reasons:

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1. Ease of contact. I want time available to speak with any member who wishes to arrange a call following the release of a major report.

2. Limited distraction. My aim is to produce superior research. Therefore, research must comprise the bulk of my time. Once 25 seats are filled, no new seats shall be issued until December 15th, 2025, with future sales efforts restricted to the first and third quarter of each year. However, a ranked waitlist shall be made available to prospective members by order of signup. 

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On that note, prices will rise in future years, and perhaps exponentially. However, Maiden's first 25 members will receive a -20% discount to December 2025 pricing, and will be grandfathered the discounted annual rate in perpetuity. This is my way of giving thanks for your trust to build a library that is at its early stages, but one that I foresee myself and Maiden’s members leveraging to great effect across the economic cycle. 

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If you are interested in reserving a seat, I will be collecting names until December 15th, 2024, or until the 25th member registers, after which I will announce Maiden’s launch publicly, along with any seats remaining. Please contact me at gwen@maidenfinancial.io to inquire about pricing, and to reserve your seat. If we have not met before, I ask that we schedule a call to make sure that Maiden Financial is right for you. 

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Here's to friendship, hard work, and the gift of capital markets.
 

Sincerely,​

Gwen Hofmeyr​​​​​​​​​​​​​​​​​​​​​​​​​​