─── NORTH AMERICAN INDUSTRIALS
THE $2 TRILLIOn
RESHORING WAVE IS HERE
Systematic exposure to industrials positioned for the largest US
manufacturing build-out since WWII.
THE REINDUSTRIALIZATION THESIS — BY THE NUMBERS
$2.1T
800K+
$280B
56%
WHY “WILLOW RUN”?
THE NAPKIN THAT WON WWII
“We’re not going to build the plane the way they do. We’re going to build it our way.”
— Charles Sorensen, Ford Motor Company, 1941
In 1941, aviation experts said bombers couldn’t be mass-produced. Charles Sorensen sketched a mile-long
factory on hotel stationery and proved them wrong. Willow Run hit one B-24 every 63 minutes — 8,685 aircraft
by war’s end. We named our fund for that factory. Not for nostalgia, but because we see the same dynamic
returning: when the stakes rise, America builds.
THE OPPORTUNITY
WHY INDUSTRIALS. WHY NOW.
For 40 years, the playbook was “design here, build there.” That’s over.
Three forces are driving the reversal.
01
- China exposed concentrated supply chain risk
- Semiconductors, pharma, defense — all coming back
- This is national security, not trade policy
02
- 56% of manufacturing CEOs plan to reshore
- Boards watched COVID break supply chains in real time
- Resilience is now a fiduciary issue
03
- IoT, smart sensors, AI, and robotics now cheaper and accessible
- Greater operating efficiencies across the factory floor
- Higher value-added products command premium pricing
04
- Decades of headwinds drove investors into tech and consumer
- Companies that make things are structurally undervalued
- Unusually large opportunity set for patient capital
OUR APPROACH
NORTH AMERICAN REINDUSTRIALIZATION STRATEGY
Industrials. Bets. Systematic Process.
01
Industrials screened for reshoring exposure
02
Multi-factor model: value, quality, momentum
03
50 positions
△
We purchase stocks at reasonable valuations. Utilizing a proprietary value model, we normalize for the business cycle, focus on intrinsic value, and allow for proper comparisons between companies.
☆
Critical aspects of quality are high profitability and low debt. A track record of high returns on invested capital is indicative of good management, a favorable competitive structure, and a mindset of creating shareholder value.
∧
The next 20 years will be very different than the past 20 years. Consequently, backward-looking indicators may be misleading. We utilize momentum indicators that have a history of helping to correct the rear-view mirror biases.
WHO WE ARE
OUR TEAM
Founder & Portfolio Manager
Amit is a principal at Willow Run, responsible for strategy and investment policy oversight. In addition, Amit is the founder of Delorean Partners. Previously, he spent 29 years as a partner and portfolio manager at GMO, an institutional asset management firm with $80bn in assets under management. He led the fundamental research team in emerging markets and was CEO of GMO Singapore. Amit earned his Bachelor of Engineering at the University of Bombay and his MBA at the Institute for Technology and Management in Bombay.
Founder & Portfolio Manager
Matt is a principal at Willow Run, responsible for portfolio implementation and research. Before Willow Run, Matt was a principal at Craftsman Management. Previously, Matt was a partner at GMO. At GMO, he worked as a fundamental research analyst. He also developed the quantitative models that accounted for the bulk of the $10bn Emerging Markets Fund. Matt earned his B.A. in economics from the University of Michigan and his MBA from Columbia University, where he was a Feldberg Fellow.
Quantitative Analyst
Jermaine is a Quantitative Analyst at Willow Run. Previously she worked at DXC as a senior data engineer and at Accenture as a software engineer. Jermaine earned her Bachelor’s Degree in Computer Engineering from the University of the Philippines.
Research Analyst
Aditya is a research analyst at Willow Run. Aditya has over 20 years of experience in leadership positions in direct-to-consumer businesses and the development and financing of large infrastructure projects. Aditya holds a Bachelor’s Degree in Commerce from Calcutta University and an MBA from XIM, Bhubaneswar.
Quantitative Analyst
Prasham is a research analyst at Willow Run. He previously worked at Gartner and Polestar Solutions. Data and analytics professional with prior experience at Gartner and Polestar Solutions. Contributes to data architecture and portfolio research.
Research Analyst
Raphael assists with investment research and data analysis.
INSIGHTS
LATEST RESEARCH
Industrials
War has been America’s most effective industrial policy. Not by design. By necessity.
Industrials
Industrials
Industrials
NORTH AMERICAN INDUSTRIALS
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Email us at invest@willowruncapital.com