Good Soil Investment Management launches maiden fund

Bailey McCann, Opalesque New York for New Managers:

Emmett Peppers, a former salesman at Interactive Brokers and independent investor, has launched a new hedge fund. Good Soil Investment Management’s Accelerated Opportunities LP Concentrated Growth Fund will invest in listed US-based companies that disrupt existing business models.

Peppers grew his individual fortune from $30,000 to $70 million using an investment process he created and now replicates in the fund. “The strategy is really a portfolio of my best ideas,” Peppers tells Opalesque New Managers. “Over the years I’ve created a data gathering process where I understand big themes, sentiment, and business models and make investment decisions based on my read of that data.” The resulting portfolio is a small number of concentrated positions that he expects will grow significantly. Peppers was an early investor in companies like Facebook and Tesla.

The strategy is offered as a 506(c) vehicle. 506(c) funds are allowed to directly market to accredited investors. The structure also provides greater transparency. That’s important because investors can choose to donate a portion of the investment and management fees to charity through the Peppers Family Good Soil Foundation. Peppers says he wants the entire fund and charitable giving process to be completely transparent to investors.

“My goal is not just for this fund by itself to be successful but to also set an example for a new trend of social good within capitalism,” Peppers said. “We’ve seen ESG (environmental, social and governance) become a bigger and bigger trend, and I believe charitable giving should become the next way for capitalism to continue evolving successfully. I want to show that capitalism can give back beyond simply paying taxes.”

Peppers has established the foundation with his personal wealth and future contributions from investment fees will enable the foundation to make larger contributions to the charities it supports. The foundation already gives to organizations including the International Justice Mission, Nutrition Coalition, and charter schools such as Success Academy. Peppers plans to work closely with investors to determine if they have other philanthropic organizations they would like to add to the Foundation’s roster.