Dear Maiden: The Founding Letter 
October 31, 2024
 

“Well done is better than well said.”

— Benjamin Franklin

On a warm, June summer’s day in 2017, I opened my first ever book on investing: One Up on Wall Street, by Peter Lynch. At a time in my life where I ached for purpose and passion, Peter’s words were the salvation I craved. Awoke to the intellectually stimulating world of capital markets, I hung onto every word; reading, and rereading, as if I had been reborn.

​

Dozens of books later, an amateur blog, and a “lead with your work” attitude, and I landed my first job as an equity analyst at Tiny, in the fall of 2018. Tiny was the best employer I could have hoped to have as a budding analyst. Andrew Wilkinson and Chris Sparling, Tiny’s co-founders, have a preference for delegation, so instead of mentorship, they gave me the proverbial equivalent of a trowel and a bottle of water, and sent me into the desert with a friendly, “Good luck!” 

​

Had Andrew and Chris taken a different approach, I am not sure that I would be writing this letter, for what they prescribed was a form of introspection that is rare in modern finance. Unlike the typical firm where analysts are given assignments and clear instruction, I was left to figure out how to add value to Tiny and to develop as an analyst by myself. 

​

Fortunately, I had spent the entire previous year wrestling with my emotions as I was tossed around by volatility and trendy stocks, so I was familiar with the act of self-reflection. My turnaround began when I decided to write an entire book on all the mistakes I made during my first year investing, titled, The Halfwit Crustacean: Inside the Mind of a First-Year Investor. Taking seriously Charlie Munger’s advice for investors to improve their behavior by admitting to when they act “like a complete stupid horse’s ass,” I put my mistakes on display for all to see.

​

By the time that Covid-19 struck markets in March 2020, my halfwit days were numbered, as I proceeded to purchase shares of The Keg Income Trust, Aritzia, and 4Imprint Group in the depths of the crash. Over two years of self-driven behavioral reconditioning, and my prize was a taste of what it feels like to have volatility and uncertainty as friends, and not as enemies. 

​

As I advanced further in my career, I became increasingly aware that the primary determinant of consistent, long-term outperformance in capital markets is not achieved by one’s academic pedigree, nor by one’s IQ, but by one’s behavior. Behave commonly, and achieve common results. Behave uncommonly, and increase the probability of differentiated success. 

​

Unfortunately, our industry is becoming increasingly common. Over the past 30 years, passive and quantitative investing strategies have gone from being a market afterthought to holding a majority share of global funds. Their salability has had far-reaching effects, not least a self-inflicted, steady decline in high quality, differentiated analysis. The practice is simply endangered.

​

Inspired to up the market ante, I made the decision to start publishing my research in the first quarter of this year. I did not know exactly what would happen, but I knew that if I brought a high standard of research to the industry, and put myself intellectually at-risk, that I would at least further the quality of my own work.

​

The first report I published was on Hingham Institution for Savings, a small, owner-operated regional bank based in Hingham, Massachusetts. You may find a free copy under “Sample Reports” on the Home Page of Maiden’s website. My research involved the comparative analysis of Hingham to 138 banks in the SPDR S&P Regional Banking Index, and the construction of a dataset that comprised over 3,600 data points, most of which were manually derived. 

​

After its publication, my report caught the attention of writer and investor Swen Lorenz, who promptly reached out to ask if I would be willing to do an interview, and if he could write an article on my report. I agreed, and was pleasantly surprised when Swen titled the piece, “Hingham Institution for Savings, or How to Analyze Stocks.” I was on the road driving home from Berkshire Hathaway’s annual general meeting, and Swen’s praise felt cosmic. As I overlooked the Columbia River from a rest stop, it felt like the universe had set my course.

​

To give thanks for Swen's generosity, I offered to conduct a research project of his choosing, and he was quick to respond: Swen wanted a land report. (Again, see Maiden’s Home Page for a copy).

​

After mulling through the reports of 753 companies, I landed on Ingles Markets, a family-owned chain of supermarkets based in Asheville, North Carolina. Through nearly 1,000 county tax record searches across 400 counties, I built a dataset with over 10,000 data points on Ingles' property and business. My findings were beyond the market's common understanding, with owned acres identified exceeding those disclosed in Ingles’ reporting by 2,170%.

​

The report was a hit, and the response I received was overwhelmingly positive. Shortly after, I was interviewed by Edwin Dorsey on Sunday Ideas Brunch, and once more, the market’s response was clear: In a world dominated by quantitative and passive investing strategies, my research was not only desired by the market, but needed. 

​

I was two weeks away from starting a contract with a reputable firm based in Charlotte, North Carolina, and I called up the CIO to tell him that I was going to start a subscription-based research firm, and that I would no longer be taking private contracts. He thought it was an excellent idea, and gave me his full support.

​

As such, today officially marks the day that Maiden Financial opens its doors to the market. If you are reading this letter, it is because I am seeking founding members who may be interested in subscribing to my vision for Maiden.

​

That vision is a library, full of long-form, archeological exposés that may eventually comprise one the market's most unique and valuable collections of analytical works. In doing so, my hope is to attract a community of long-oriented professionals who share a similar passion for the art of investing, and who care deeply about the preservation of analytical excellence.​

​

Members may expect Maiden’s first report to be published by Sunday, January 19th. I suspect that reports will range, on average, between four and twelve weeks, although some reports may be produced quicker depending on their scope, format, and urgency. However, under no circumstances will report expediency ever be favored at the expense of quality in the course of Maiden’s operation. 

​

The aim of every report published will be to provide investors with a high degree of information and insight on marketable securities beyond what is commonly available. Research will be global in scope, but will favor countries governed by a strong rule of law. Moreover, given that Maiden’s service is oriented towards professional investors and high net worth individuals, the minimum market capitalization of analyzed companies will be $200MM USD. Should members disagree with the minimum prescribed market capitalization, I may put its amendment to a vote. 

​

As a disclaimer, there may be times where actionable ideas are difficult to find. Under such conditions, I will favor analysis of companies that I believe to be attractive for prospective ownership. Companies favored in such “latent” reports may include those that are cyclical with interest rates, supply and demand, and/or economic conditions that appear to be at, or approaching, their cyclical highs. 

​

This is to say that sometimes Maiden’s research will be preparatory in nature, for my aim is not merely to produce excellent research, but to encourage good behavior. The market presently favors a time horizon that spans six to eighteen months, so any company or industry that is priced lowly in response to a cyclical decline in earnings is one category of investment that members may expect Maiden to favor. Put differently, I will encourage the reader to become comfortable with uncertainty when others are not.

​

With that said, your sponsorship today marks the start of Maiden as a fully autonomous and self-directed research firm, with myself as its founder. For the first year of Maiden’s operations, the number of seats issued will be limited to 25 persons, for two reasons:

​

1. Ease of contact. I want time available to speak with any member who wishes to arrange a call following the release of a major report.

2. Limited distraction. My aim is to produce superior research. Therefore, research must comprise the bulk of my time. Once 25 seats are filled, no new seats shall be issued until December 15th, 2025, with future sales efforts restricted to the first and third quarter of each year. However, a ranked waitlist shall be made available to prospective members by order of signup. 

​

On that note, I believe that Maiden is likely to be successful. As a result, prices will rise in future years, and likely exponentially. However, Maiden's first 25 members will receive a -20% discount to December 2025 prices, and will be grandfathered the discounted annual rate in perpetuity. This is my way of giving thanks for your trust to build a library that is at its early stages, but one that I foresee myself and Maiden’s members leveraging to great effect across the economic cycle. 

 

Without further ado, the plans below detail what members will receive in exchange for subscribing to Maiden for one year. Please note Maiden's Terms and Conditions and Privacy Policy for important disclaimers, as well as information on refunds and restrictions on report sharing. The research I produce is overwhelmingly original, and therefore proprietary. The good news is that I am thirty-three years old, so there will be ample opportunity for your friends and colleagues to subscribe to Maiden in the years ahead.

​

Membership Plans

​

Maiden Standard

​

Cost: $3,599.00 USD per year for founding members. The standard rate for new members will increase, at minimum, to $4,499.00 USD per year starting December 1, 2025.

​

Benefits:

• 5 to 6 long-form reports per year

  • A minimum of 5 in-depth report​s per year, that may cover companies, industries, and/or any marketable security of interest.

• Material event updates

  • Material event updates will explore the benefits or consequences of any event that is confirmed, or presumed, to have a material impact on one of Maiden's covered companies​.

• One free call per month

  • Members shall be entitled to schedule one free thirty-minute call per month with myself, with call time strictly reserved to Wednesdays between 12:00PM—5:00PM Eastern Standard Time. Maintaining a strict call window ensures that research remains relatively undisrupted throughout any given week. Extended or multiple monthly calls may be arranged for an additional fee, but will be limited in availability due to the necessity of research prioritization. The call window may expand or evolve as Maiden scales in future years.

​

Maiden Elite

​

Cost: $5,699.00 USD per year for founding members. The standard rate for new members will increase, at minimum, to $6,999.00 USD per year starting December 1, 2025.

​

Standard Benefits, Plus:

• Quarterly covered company updates​​

  • Quarterly company updates will regularly provide Elite members with covered company thesis updates, as well as quarterly information that I feel is important for discussion.

• ​Company datasets​​

  • Every report Maiden produces shall grant Elite members full access to associated company and industry datasets for personal use by the subscribing firm or person.

• Market crisis briefs

  • ​Maiden shall make its position known in periods of market turmoil, for which briefs are likely to be several. The intent of crisis briefs will be to encourage good behavior by helping investors stay focused on the fundamental truths of companies contained within Maiden's library, and on attractive opportunities available.

• Market crisis roundtables

  • To expand on the previous benefit, in times of market uncertainty, members will be invited to attend a virtual conference call, where they will have the opportunity to collectively ground each other to stay focused on noteworthy opportunities, and on the fundamental characteristics of the businesses they own. 

• Annual reports

  • ​Annual reports will provide Elite members with exclusive access to a discussion of Maiden's business proceedings throughout the course of a fiscal year, including a discussion of the performance and composition of Maiden's portfolio​.​

​

​For those of you who know my work, I hope that your view reflects my own: That I am offering institutional-grade research for a fraction of the price that such a service normally demands.

​

If you are interested in reserving a seat, I will be collecting names until December 15th, or until the 25th member registers, after which I will announce Maiden’s launch publicly, along with any seats remaining. Please contact me at gwen@maidenfinancial.io to inquire about pricing, and to reserve your seat. If we have not met before, I ask that we schedule a call to make sure that Maiden Financial is right for you. 

​

Here's to friendship, hard work, and the wonderful gift of capital markets.

Sincerely,

​

Gwen Hofmeyr​​​​​​​​​​​​​​​​​​​​​​​​​​