Lev Margolin's Four-Step Process for Finding Structural Winners
This content was first published on Livewire on 30 October 2025.
System Capital’s Lev Margolin reveals how he finds long-term structural winners and four stocks he expects to grow stronger.
In a market that seems to change its mind daily, it’s easy to be distracted by the next big theme. From AI to crypto to small-cap rallies, there’s always a new story commanding attention. But for Lev Margolin, founder and CIO of System Capital, the focus is far longer term.
By concentrating on businesses that will be structurally stronger in five years’ time, Margolin has built a strategy that’s delivered 22.2% per annum since its inception in 2022 - without chasing the latest fad or headline.
“What we’re trying to do is identify companies that aren’t just good businesses today, but that will be fundamentally better businesses in the future,” says Margolin. “That’s where the real alpha comes from.”
Margolin’s early experiences working at L1 Capital shaped much of his philosophy. He joined L1 in 2009 when it was still a small long-only manager working alongside co-founders Raff Lamm and Mark Landau. His 14 year tenure at L1 instilled in him the value of disciplined research and a pure focus on process.
“At L1, the alpha was always in the detail,” he recalls. “The regulatory report you read that others ignored, the extra industry analysis that built conviction - those are the insights that give you the confidence to hold a position longer or time your entry better.”
In this episode of The Rules of Investing, Margolin explains the four-step framework System Capital uses to identify structural winners, where he’s finding value in a hot market and four companies he believes will be stronger five years from now.
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