Practical analysis for investment professionals

Luke Constable

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3 Posts


Luke Constable is the founder and managing member of Lembas Capital, a public-private investment firm. Lembas looks for companies with charisma – quality businesses with accelerating cash flows and favorable capital flows. Prior to Lembas, Luke worked in special situations, growth, and crossover investing at several hedge funds and a private family office. He received his AB in history from Duke University and his JD from Stanford Law School. He was a champion Civilization IV player and is a member of the California Bar Association. Originally from Philadelphia, Luke now lives in New York, where Lembas is headquartered.

Author's Posts
Counting the Cost of Capital and Seeding Network-Based Accounting

Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”

Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow

GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.

How Alpha Hides in GAAP Accounting: Return on Equity

You can find significant alpha in the mechanics that drive GAAP accounting.