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The Fund: Acquisition Strategy

CHROME TEMPLE
May 15, 2024
The Science Of Selection

Results Before Romance
If you had the means to acquire your dream car, regardless of cost, what would you choose? Now, consider what car you would buy solely to generate the highest return—would it be the same? For some, their dream car aligns with investment potential, but for others, the decision is more emotional. For the CHROME TEMPLE Investments Mach 1 Fund ("Mach 1 Fund" or the "Fund"), the approach is grounded in data-driven strategies, removing personal biases to uncover the most profitable opportunity potential.

Future Classics For Future Value
Before delving into our acquisition strategy, it's crucial to understand the foundation upon which the Fund is built: the Fund's Objective and Investment Thesis. Our primary objective is to generate returns from the acquisition, hold and liquidation of performance cars, and our investment thesis focuses on targeting last-of-the-line production vehicles. Combined, these place the Fund’s means of generating potential returns from high-growth potential future classics.

Data Driven Investment Strategy
The Fund’s objective and investment thesis provide guidelines, while our acquisition strategy relies on meticulous data analysis to identify cars with the best value and growth prospects within these guidelines. Leveraging proprietary statistical models derived from millions of data points, we assess real-time market trends, historical sales results, and predictive indicators. Our models employ two primary approaches: the predictive approach and the indirect markers approach.

Predictive Approach To Vehicle Selection
The predictive approach uses historical data to identify key features indicative of a car's potential as a future classic to deliver returns. Factors such as:

  • Low global production quantities
  • Low mileage for age
  • Exemplary condition
  • High specification desirability
  • Analogue driving inputs
  • Strong provenance records
  • Global appeal
  • Exhibit pricing trends of leading statistical indicators

Indirect Markers Approach To Vehicle Selection
Meanwhile, the indirect markers approach looks at quantitative and qualitative indicators, such as:

  • Analysing recent sales volumes compared to current market availability
  • Assessing manufacturers' production plans
  • Identifying release dates
  • Comparing a model's performance with competitors over time
  • Tracking accidents that affect the finite supply of target cars
  • Reviewing media and social media mentions

The combination of different signals is carefully analysed, leveraging expert know-how of the teams’ analysts and automotive experts.

Expertise Forging The Path To Success
While our data-driven approach provides invaluable insights, the expertise of our automotive professionals is equally essential. Their nuanced understanding of the automotive market complements quantitative analysis, providing context and qualitative insights that algorithms alone cannot capture.

Making Professional Investment Accessible
In essence, the Fund's acquisition investment strategy blends passion, expertise, and data to uncover market opportunities. With this meticulous approach, the Fund strives to surpass the emotionally-driven strategies common among ‘hobby’ collectors, while also democratising professional automotive investment for investors, enthusiasts, and collectors of all kinds.

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Continue Reading:
The Fund Intro 00: Genesis
The Fund Intro 01: Objective
The Fund Intro 02: Investment Thesis
The Fund Intro 04: Fund Structure
The Fund Intro 05: Governance & Oversight
The Fund Intro 06: Information Memorandum

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