What is Consolidated Rock?
An investment company and passion project, Consolidated Rock has a broad investment mandate with four guiding principles:
- Generate high returns over a full market cycle
- Control risk through position sizing
- Minimize activity by reallocating capital over time only as needed
- Provide a proof of concept for Sultan Ameerali’s investing database and skills
The goal of Consolidated Rock is to be a small holding company that owns large operating companies.
History and performance
I founded the original Consolidated Rock Holding Company (version 1.0) in 2008 to take advantage of real estate opportunities presented by the financial crisis.
- Residential, commercial and multi-family real estate
- Medical office space
- Limestone quarry and aggregate production
- Mineral royalties
The mandate of the company expanded to buying public equities after the properties were sold, and to find an excuse to purchase a Bloomberg terminal. Based on the mathematical constructs of asymmetrical risk, Consolidated Rock invested in private and publicly-traded businesses by purchasing common shares, debt instruments and orphaned assets priced at severe discounts.
I never bought that Bloomberg terminal and the tax advantages of the corporate shell disappeared over time, so the corporation was dissolved and the assets liquidated.
Version 2.0 and the database
As a journalist I kept extensive notes. It’s a habit that stayed with me as I became an investor. Over time I built a database on hundreds of Canadian companies, local real estate markets, notable investors and unknown and under-followed data points. It also includes information generated by consultants on retainer and my own proprietary research. Cross referencing the database with standard financial data provides a competitive advantage: I identify patterns and discover more opportunities with less work. It also allows me to act quickly when required.
I restarted Consolidated Rock after a recent change in personal circumstances. An investment company makes sense again as the database requires capital and staff to transform from Excel, word documents and hand-written notebooks into something self sustaining so it can be fully monetized.
The Consolidated Rock portfolio has consistently generated annual returns that exceed the relevant benchmarks by using the database, mathematical analysis, investigative research and outside consultants to evaluate investment opportunities.
The corporate structure makes it easier to partner with others on large investments and maximize tax efficiencies. It also allows for a clear delineation between my personal portfolio (conservative, small number of holdings, minimal trading activity with DRIP, workplace pension) and the proof-of-concept Consolidated Rock portfolio meant to optimize returns and feature distressed assets (private companies, real estate, equity holdings, extensive use of special situations and arbitrage).
Looking to talk stocks?
The primary purpose of this website is to act as a trading journal and put my investment ideas under scrutiny. Without documenting my thought process, ideas and theories, there is no source of truth to determine what is actually working or not.
If you want to talk stocks or partner on a deal, contact me on Twitter.