Engine Capital Management

Engine Capital Management

Engine Capital Management is a New York-based hedge fund launched in 2013 with approximately $1.7 billion in AUM. The firm is a value-oriented special situations investment fund that invests both actively and passively in companies undergoing change. Engine follows a strict discipline of investing in companies prone to mispricing while focusing on limiting permanent losses of capital. The firm targets undervalued companies where it understands the reason for the mispricing and where change is occurring to close the value gap. Its approach emphasizes fundamental research on companies with simple business models, a strict focus on valuation and the likely steps to close the value gap, concentration with a long-term orientation described as private equity-style investing in the public market, and activism as a tool to highlight or create shareholder value. Engine prioritizes stable businesses with strong free cash flow generation, good balance sheets, and undemanding valuations. The firm often constructively engages with management teams and boards of directors to unlock value for shareholders. Risk management is achieved through deep fundamental research, position sizing, industry diversification, and focused hedges.