Disciplined Investing in Mispriced Quality
B.D. Sterling is a research driven investment project focused on investing in high quality businesses at moments of temporary dislocation. It is not currently a registered investment adviser, fund, or legal investment entity, and it does not manage outside client assets. The strategy is implemented through a joint account in order to build an auditable track record and reflect actual portfolio decision making under institutional risk standards. Our philosophy centers on disciplined capital allocation, structured risk management, adaptive learning, and long term stewardship. We seek opportunities where durable business fundamentals intersect with temporary market dislocations, applying fundamental research to evaluate intrinsic value, downside risk, and long term compounding potential.
Portfolio Focus
Dislocated Quality Businesses
*The performance shown reflects results from a joint account used to build an auditable track record from 09/18/24 to 12/01/25. It is not the performance of a fund or registered investment adviser, and does not reflect the performance of outside client accounts. Past performance is not necessarily indicative of future results. All numbers and data are from the data 12/01/25 and have not been updated to show any further performance or holding changes.
Our Core Principles
Disciplined Capital Allocation
We allocate capital only when expected long-term compounding outweighs risk. Idle cash is preserved unless it can generate better risk-adjusted returns.
Structured Risk Taking
We embrace concentration but require each position to follow a clear thesis, scenario plan, and exit triggers. We act only on new material evidence, not market noise.
Adaptive
Learning
Markets are unforgiving teachers. We acknowledge what we don’t know, invite dissenting analyses, and pivot when new facts emerge. Our youth becomes an advantage only when matched with relentless curiosity and the courage to revise.
Aligned Stewardship
We believe success stems from aligned incentives. With 99% of our net worth in one account, we operate as disciplined and patient stewards, committed to long term value and fully accountable for every decision and outcome.
Frequently Asked Questions
B.D. Sterling is a research driven investment project and model portfolio operated by its portfolio managers. The strategy is executed through a jointly managed account to establish a real world track record under live market conditions.
B.D. Sterling buys high quality qualities that are simply mispriced. The mispricing can be due to sentiment, change in business model, macro events, corporate actions, legal actions. This incorporates our appreciation for high quality companies that compound at high rate over a long period of time, as well as special situations where a company has the ability to unlock value in a clear horizon. Providing a blend of uncorrelated alpha and taking advantage of the simple science of compounding.
We are NOT publicly solicitating at this moment. We do not accept ANY external investors.
Learning from the investment titans before us, we have adopted a concentrated portfolio strategy. Most of the model portfolio returns can be accredited to a select few names, and this is where we believe our concentration and energy should be focused on. “I like putting all my eggs into one basket, and then watching that basket very carefully.” - Stanley Druckenmiller
Growth and value are not mutually exclusive. Value is in identifying opportunities where the market fails to reflect the company’s underlying fundamentals and growth potential in the stock price. A higher than market P/E ratio does not disqualify a stock if its growth trajectory significantly surpasses market averages. Growth doesn’t cancel out value, it can be the very reason value exists. In fact, many of the best value opportunities arise when the market underestimates the quality and sustainability of a company’s growth.