Partner info

The Bonhoeffer Fund is named after the German theologian Dietrich Bonhoeffer, whose opposition to the Nazi regime ultimately led to his execution. He was an inspiration to Martin Luther King, Jr., and the civil rights movement, the anti-communist movement in Eastern Europe during the Cold War, and the anti-Apartheid movement in South Africa.

“We must learn to regard people less in the light of what they do or omit to do, and more in the light of what they suffer.”

“If you board the wrong train, it is no use running along the corridor in the other direction.”

—Dietrich Bonhoeffer

Executive Summary

The Bonhoeffer Fund, LP, is a value-oriented investment partnership. The fund objective is to grow capital at a faster rate than market indices over full market cycles and provide minimal exposure to permanent loss.

Investment Strategy
The Bonhoeffer Fund identifies and invests in undervalued securities that are either undiscovered or misunderstood. Working largely in international markets, Keith finds investable opportunities that include compound mispricings, miscategorized firms, and/or corporate actions. His circle of competence consists of telecom and media services, logistics services, asset managers, food and beverage services, information processing, real estate services, cement and aggregates, and recreation services.

Team and Organization

Keith D. Smith, CFA
Keith Smith, the fund manager, brings over 20 years of valuation experience to the Bonhoeffer Fund. He is a director for Enterprise Diversified, Inc (OTC: SYTE). He is a CFA charterholder and received his MBA from UCLA. Keith is the former Managing Director of a valuation firm and his expertise includes corporate transactions, distressed loans, derivatives, and intangible assets. Warren Buffett and Benjamin Graham’s value-oriented approach of pursuing the “fifty-cents on the dollar” opportunities, underpins Keith’s investment strategy. The combination of his experience and track record led Keith to commit most of his investable net worth to the Bonhoeffer Fund model.   

Willow Oak Asset Management
Willow Oak supports the fund with operational infrastructure and serves as a platform for like-minded value investment funds backed by a public company—Enterprise Diversified, Inc.

Investment Strategy

The Bonhoeffer Fund employs a long-only, value-oriented approach in off-beat markets. Our goal is to purchase undervalued operating firms worldwide that are in a state of distress and/or transition, but also exhibit recurring revenue.

The fund invests in overlooked securities where the popular market perception differs from the true value of a specific investable opportunity.

Geographically, the fund is open to investing in various regions including the US and UK in addition to other developed and emerging markets.

This investment approach yields higher net appreciation over full market cycles than higher risk and/or short-term strategies.

*The Bonhoeffer Fund does not directly nor indirectly employ leverage nor borrow at any time, whether on margin or otherwise.


Bonhoeffer Fund looks for undervalued opportunities in unconventional markets that also embody one or more of the following attributes:

Compound Mispricing
An instance where both a firm and its underlying securities are mispriced. This opportunity is found in securities with multiple layers of a corporate structure.

Miscategorized Firm
The underlying business purpose of a firm is not currently reflected accurately within the market. The discrepancy may happen because the firm is transitioning from one business model to another (e.g., a shipping company moving to logistics; a construction company pivoting to real estate and project development).

Corporate Actions
Securities in out-of-favor industries and firms engaged in corporate actions such as share buy-backs, spinoffs, rights offerings, and bankruptcies provide value-enhancing opportunities.


The geographic scope is international as well as domestic. Our focus on emerging markets requires review and consideration of adequate disclosures. When considering where to invest, we take precautions to avoid value traps and ensure the fund has a reasonable chance of realizing the upside for our shareholders.


The Bonhoeffer Fund focuses on long term results. With a higher risk approach than an average mutual fund, volatility is expected (and welcomed) within short market cycles across varied geographic regions. To address short term volatility, our strategy relies on long-term market trends to strive for overall capital gains for our investors.

Risk Management

The below combination effectively diversifies the Bonhoeffer Fund portfolio to position the fund to capture desired gains.

Business Risk
Most positions have compound mispricings which provide multiple investable advantages.

Market Risk
Securities are diversified across various sectors and regions of the world.

Financial Risk
A credit analysis is performed on balance sheet debt to ensure its serviceability.

Valuation Risk
Positions are purchased at an estimated discount to intrinsic value of 50%.

Why us?

Keith has over 20 years of experience performing due diligence in uncommon and/or overlooked markets. He will continue to find and capitalize on these similar opportunities for the Fund.

Understanding the fundamentals of businesses, focusing on valuation, and ensuring the alignment of management are our key processes for how we evaluate securities.

The investment process was refined over the course of two decades and has proven successful over a 17 year period in generating above-market returns for its investor.


This site does not contain all the information that is material to a prospective investor in the Bonhoeffer Fund, L.P. (the “Fund”).

Not to be disseminated—The information set forth in this site is being furnished on a confidential basis to the recipient and does not constitute an offer, solicitation or recommendation to sell or an offer to buy any securities, investment products or investment advisory services. Such an offer may only be made to accredited investors by means of delivery of a confidential private placement memorandum, or other similar materials that contain a description of material terms relating to such investment. The information published and the opinions expressed herein are provided for informational purposes only. This site is confidential and has been prepared solely for the information of the intended recipient and may not be reproduced, distributed or used for any other purpose. Reproduction and distribution of this site may constitute a violation of federal or state securities laws.

No advice
Nothing contained herein constitutes financial, legal, tax, or other advice. The Fund makes no representation that the information and opinions expressed herein are accurate, complete or current. In particular, the Personal Track Record is unaudited, has not been reviewed by a qualified third party, and was based solely on an internal review of certain personal broker statements. Moreover, the Personal Track Record is not a guarantee of future performance of the Fund, and Fund returns are likely to differ materially from the Personal Track Record.

An investment in the Fund is speculative due to a variety of risks and considerations as detailed in the Confidential Private Placement Memorandum of the Fund, and this site is qualified in its entirety by the more complete information contained therein and in the related subscription materials.

Facts & opinions
Although the statements of facts in this site are based upon sources that Bonhoeffer Capital Management, LLC (“BCM”), the general partner of the Fund, believes to be reliable, BCM does not guarantee their accuracy, and any such information may be incomplete or condensed. All opinions and estimates included in this site constitute BCM’s judgment as of the date of this site, and are subject to change without notice.

No Recommendation
The mention of or reference to specific companies, strategies or instruments in this site should not be interpreted as a recommendation or opinion that you should make any purchase or sale or participate in any transaction.