Welcome to Hurdle Rate,
My name is Tristan, a practicing accountant and investor from Australia. The Hurdle Rate Substack is a journal for my investing journey.
The name “Hurdle Rate” is inspired by the Canadian software company Constellation Software and refers to the use of a static ‘discount rate’ in a valuation. Constellation initially had a hurdle rate of 25%, which I also had adopted in early 2020, having utilised it consistently to this day.
“When we dropped our hurdle rate, it dragged down the expected IRRs for all the opportunities that we subsequently pursued, not just those at the margin. We try to capture this idea by saying “hurdle rates are magnetic”. It now takes a very brave soul to propose a hurdle rate drop at CSI.”
- Mark Leonard, 2015 President's Letter
To ensure that my business analysis is consistently of a high standard I keep my focus narrow to maximise pattern recognition and strength of understanding compared to others in the market. The idea of this is to model more accurately (though not with certainty) and increase the hit rate of my investments, creating a sustained competitive advantage. Furthermore, with a global outreach with no size mandates I can further minimise competition by searching ‘off the beaten path’ for compelling investments.
By subscribing to Hurdle Rate you can expect to receive the “4 P’s” on a regular basis:
Podcast - Interviews with company staff in my circle
Pitches - Stock pitches or follow-up posts.
Process - Posts about my process and changes in the process.
Portfolio - Portfolio updates on a monthly basis.
As of January 2025 Hurdle Rate is open to investment from Investors across the world. Please visit the Invest in Hurdle Rate Tab to learn more.
