Pattern-match by searching for similar theses

Mental models for idea generation

Some of the most valuable questions in investing are pattern-matching questions:

• What smaller company is running a playbook similar to a long-term compounder you already know and appreciate, like TransDigm?
• What other businesses have exposure to a theme you care about, like private credit BDCs with software exposure?
• What under-followed companies are AI optics plays, like Coherent but less well-known?

CapRelay's Similar Theses feature is built to answer those questions faster than manually working through a universe.

Two common use cases

1. Generate new ideas by pattern-matching to known companies

If you know why a company like TransDigm or HEICO worked (proprietary parts, pricing power, aftermarket economics, a disciplined acquisition playbook), you'll want to know which smaller or earlier-stage companies share those characteristics.

That is a hard task to do manually. As a former TransDigm investor, I've always wondered what companies are like TransDigm.

Similar Theses is a shortcut, surfacing companies that follow a similar playbook, with an explanation for why each one is relevant. For investors who already think in mental models and recurring patterns, Similar Theses makes the early stages of idea generation much faster.

2. Map exposures inside a theme

Mapping an industry is simple, but mapping a theme or particular exposure is not. - Which companies are exposed to non-res construction? - Which BDCs have outsized software exposure?

CapRelay provides not just a list of names, but also the reasoning behind each match.

What's included on the page

• Lists of companies with similar bull case theses and similar bear case theses
• Concise explanations of the shared business drivers, thesis patterns, or competitive dynamics behind each match
• Market cap and industry metadata to help triage which matches deserve follow-up