Planet MicroCap Podcast | MicroCap Investing Strategies

My guest on the show today is Christian Schmidt, a private investor and co-founder of Tracktacle, a financial data and alerts platform that provides real-time alerts on filings and news, plus full-text search across U.S. and Canadian market documents.In this episode, Christian walks us through his unconventional path from banking and e-commerce to becoming a full-time private investor, and how a series of market experiences reshaped his approach to risk, valuation, and opportunity selection. We discuss why he believes private investors have a real edge in microcaps, how he builds positions around clearly defined catalysts, and why doing the valuation work before the news hits is critical to acting with conviction.Christian also shares how painful lessons from turnarounds and management missteps led him to re-prioritize assets and competitive advantage over management narratives — and how those experiences directly inspired the creation of Tracktacle. We dive into how the platform helps investors cut through noise in SEC and SEDAR filings, identify meaningful catalysts faster, and stay on top of microcap developments in real time. We mention a few names on the show today and I'm not a shareholder in any of them.For more information about Tracktacle, please visit: https://www.tracktacle.com/Watch on YouTube:Summary:This podcast covers the investment philosophy, strategic evolution, and entrepreneurial activities of Christian Schmidt, a private investor and co-founder of Tracktacle. Schmidt’s journey began with a bank apprenticeship in Germany, followed by a financially successful but personally unfulfilling career in e-commerce, before a “cathartic” market experience in 2021–2022 catalyzed his transition to full-time private investing in 2023.His investment approach is catalyst-driven and concentrated in the micro-cap space, where he believes private investors possess a clear analytical edge. A core tenet of his process is completing extensive valuation work before anticipated news or filings, enabling rapid and confident action when catalysts materialize. This strategy is exemplified by his successful investment in Regis Corp.Recent experiences—particularly with Innovative Food Holdings—have materially reshaped his views on the relative importance of management versus business quality. Schmidt has shifted from a management-centric mindset to a conviction that assets and real competitive advantages ultimately matter more than management, provided management is not acting in bad faith. As a result, he now prioritizes deep asset analysis before engaging with company leadership.In parallel, Schmidt co-founded Tracktacle, a financial data and alerts platform purpose-built for micro-cap investors. Tracktacle aggregates SEC, SEDAR, and press release data and layers advanced filtering and AI-driven analysis on top, addressing key inefficiencies Schmidt encountered in his own research process.The Investor’s JourneyFrom Banking Apprentice to Full-Time InvestorChristian Schmidt, a 35-year-old investor from Rhineland-Palatinate, Germany, took an unconventional route into investing. Initially planning to study medicine, he instead began an apprenticeship at a rural bank while waiting for a university placement. There, a colleague’s fascination with markets “rubbed off” on him, sparked by the simple power of seeing a DAX ETF chart.Despite this interest, Schmidt found banking unfulfilling. He pursued studies in German and history with the intention of becoming a teacher, while simultaneously working as a self-employed e-commerce consultant. This business became highly profitable—so much so that he abandoned his studies—but he “really hated it from the start.” Over nine years, he invested most of his earnings into stocks and ETFs.A decisive turning point occurred between 2019 and 2021. The November–January period was extremely demanding in e-commerce, leading to “massive” mental overload. During a sharp market drawdown, his largest position, HelloFresh, declined significantly—an experience he describes as “almost cathartic.” This crystallized a binary choice: pursue investing full-time or revert to passive ETFs and his prior profession.In 2023, Schmidt chose the former, becoming a full-time private investor managing his own capital through a tax-efficient German LLC.Intellectual Influences and Strategic EvolutionSchmidt’s investment philosophy evolved from common beginner mistakes into a more flexible, catalyst-focused framework.Early MisstepsHe began by buying stocks promoted in German financial magazines as “the next big thing,” including PayPal, BMW, and Wirecard (which he exited before its collapse). Reflecting on this phase, he notes, “I think most of us started this way.”Key Influences* Paul Chishik: Conversations with Chishik were pivotal, helping Schmidt abandon rigid academic valuation frameworks in favor of more practical, situational analysis. He found traditional valuation textbooks excessively complex, requirin

My guest today is Robert Gardiner, Chairman and Co-Founder of Grandeur Peak Global Advisors. Robert has over four decades of experience investing in small and micro-cap companies across global markets, and in this conversation, he shares how his core investment philosophy has remained remarkably consistent over that entire period. His approach is rooted in bottom-up research — identifying high-quality growth businesses early in their lifecycle, partnering with strong management teams, and maintaining strict valuation discipline.A major theme of this episode is why Robert believes the most compelling opportunity in micro-cap investing today is outside the United States. He explains how international micro-cap markets now resemble the U.S. micro-cap environment of the 1990s — a time defined by a large and growing universe of public companies, limited institutional coverage, and meaningful inefficiencies. We discuss why regulatory changes and the rise of private equity have shrunk the opportunity set in the U.S., and why regions like Japan, the UK, and the Nordics now offer what he describes as “mouthwatering” opportunities.Robert also walks through Grandeur Peak’s two-phase investment process — starting with rigorous quantitative screening across a global universe of roughly 35,000 companies, followed by deep qualitative research that emphasizes direct engagement with management and extensive on-the-ground company visits. We talk about why “touching the company” still matters in an era of AI and data abundance, and how global “dot connecting” can make investors better decision-makers, even in domestic portfolios.Finally, Robert shares lessons from a recent three-year sabbatical that prompted meaningful refinements to both process and culture at Grandeur Peak — including the importance of balancing breadth with depth in research, reinforcing buy and sell discipline, and building a firm culture where every team member feels true ownership.This is a wide-ranging conversation that touches on global markets, micro-cap inefficiencies, investment process, leadership, and long-term perspective from someone who has seen multiple cycles firsthand.For more information about Grandeur Peak Global Advisors, please visit: https://grandeurpeakglobal.com/Watch on YouTube:Summary:This podcast synthesizes the investment philosophy, market outlook, and professional insights of Robert Gardiner, Chairman and co-founder of Grandeur Peak Global Advisors. With more than four decades of experience, Gardiner’s approach is grounded in a consistent, bottom-up strategy focused on identifying high-quality, small growth companies at fair prices.The central thesis is that the most compelling opportunities in micro-cap investing today exist outside the United States. Gardiner argues that international micro-cap markets now resemble the fertile U.S. micro-cap environment of the 1990s—characterized by a broad and growing company universe, limited institutional competition, and attractive valuations—before increased regulation and the rise of private equity constrained opportunity.Regions such as Japan, the United Kingdom, and the Nordics stand out as particularly rich hunting grounds for underfollowed companies. Grandeur Peak’s investment process combines rigorous quantitative screening across a universe of approximately 35,000 global companies with intensive, on-the-ground qualitative research emphasizing direct engagement with management.The document also explores key lessons from Gardiner’s recent three-year sabbatical, which prompted renewed emphasis on research depth, process discipline, leadership presence, and firm culture as foundations for long-term investment success.Robert Gardiner: Career Trajectory and Core PhilosophyAn Unconventional StartRobert Gardiner’s entry into investing was unconventional. At age 16, he began doing “grunt work” for finance professor Sam Stewart, a neighbor, just as personal computers were emerging. What began as an after-school job at Wasatch Advisors, intended to be temporary while Gardiner pursued math and physics, evolved into a lifelong career.Gardiner credits his success to mentors including Sam Stewart and Jeff Carden, offering this advice to young professionals:“Work for some really smart good people… that’s the best thing you can do for your career is to learn from them.”His motivation comes from the intellectual challenge of identifying future market leaders, the competitive nature of investing, and a sense of responsibility for stewarding clients’ “hard-earned money.” After a long tenure at Wasatch, Gardiner co-founded Grandeur Peak Global Advisors in 2011.Enduring Investment PrinciplesGardiner emphasizes that his core strategy has remained unchanged for more than 40 years. It is a common-sense approach focused on finding superior businesses early in their life cycle.Core Tenets* Identify great small companies with substantial long-term growth runway* Seek businesses with durable competitive advan

My guest today is Dan Goldberger, CEO of electroCore (NASDAQ: ECOR). electroCore is a commercial-stage neuromodulation company developing a suite of non-invasive vagus nerve stimulation devices—delivering a two-minute therapy session designed to rebalance the autonomic nervous system. Built around its nVNS platform, the company operates across three channels: prescription medical devices for headache and migraine, the fast-growing Truvaga direct-to-consumer wellness brand, and a specialized military and government division built around its ruggedized tac-stim product.Founded in 2006 as a non-invasive alternative to implanted vagus nerve stimulators, electroCore has evolved into a multi-indication business with seven FDA authorizations for headache, serving major customers like the U.S. Department of Veterans Affairs and the UK’s National Health Service. I invited Dan to the show to discuss all of this, as well as:* How nVNS platform works and the science behind vagus nerve modulation* electroCore’s evolution from implanted alternatives to multi-channel neuromodulation* The prescription business model across the VA, NHS, and managed care* Truvaga’s growth in the wellness market and why awareness is the primary competitor* The tac-stim military program and its role as a meaningful revenue stream* Strategic priorities heading into 2026—profitability, capital allocation, and commercial execution* Challenges around insurance coverage and overcoming the “chicken and egg” problem* The path toward becoming a $150–200 million business and the long-term vision for the platformFor more information about electroCore, please visit: https://www.electrocore.com/Watch on YouTube:Summary:electroCore is a commercial-stage company developing a suite of non-invasive nerve stimulation products for medical conditions as well as the broader health and wellness market. Its core technology—non-invasive vagus nerve stimulation (nVNS)—is delivered via handheld, portable devices that provide a two-minute therapy session.The business operates across three distinct channels:* Prescription medical devices* Direct-to-consumer (DTC) wellness products* Military and government contractsThe prescription channel is anchored by electroCore’s two largest customers: the U.S. Department of Veterans Affairs (VA) and the UK’s National Health Service (NHS), where the therapy is provided free to patients for headache indications. A key strategic priority is increasing penetration within these established systems—particularly the VA, where electroCore currently reaches only ~2% of the eligible population.The company’s rapidly growing DTC wellness brand, Truvaga, targets stress, sleep, and focus, and is described by management as a “huge blue ocean opportunity.”The company’s primary challenge remains securing broad commercial insurance coverage in the United States. This process is slowed by a “chicken-and-egg” dynamic: insurers require claims data to justify coverage, while claims data requires coverage to be generated at scale. Management has acknowledged investor concerns around cash runway and forecast credibility, noting the company is “unfairly in the doghouse.”electroCore’s central corporate objective is to reach profitability in 2026, achieved by prioritizing capital deployment into proven sales and marketing channels while deferring major R&D initiatives. Longer term, management envisions building a $150–200 million revenue business over a three- to five-year horizon.I. Company Overview & TechnologyCore BusinesselectroCore’s foundational technology is non-invasive vagus nerve stimulation. CEO Dan Goldberger summarizes the company succinctly:“electroCore has a growing suite of non-invasive nerve stimulation products for health and wellness and for certain medical conditions.”Technology and Mechanism of Action* Therapy is delivered via a handheld, personal-use device with two electrodes on the “business end.”* Users are trained to locate the carotid artery in the neck and place the device over that location, where the vagus nerve travels within the same sheath.* A standard therapy session lasts two minutes.* Vagus nerve stimulation restores balance in the autonomic nervous system—shifting the body from a “fight-or-flight” state to a “rest-and-digest” state.* As described by management: if a user is anxious, stimulation brings them down; if lethargic, it brings them up.Company History and Evolution* Founded in 2006 by three physician entrepreneurs as an “overnight success that was started 20 years ago.”* Original thesis: develop a non-invasive alternative to implanted vagus nerve stimulators used for epilepsy and depression in the 1990s.* Early trials focused on epilepsy and immune response; anecdotal patient feedback (“my headache went away”) led to a strategic pivot.* 2017: First FDA De Novo authorization for cluster headache.* Commercial operations began in 2017–2018.* Today, electroCore holds seven FDA indications for headache and migraine—acu

My guest today is Dylan Marrello, Founder and Portfolio Manager at Marrello Capital. In this episode, we take a deep dive into D-BOX Technologies (TSX: DBO), a haptic technology company that’s been discussed quite a bit recently.The movie theater industry has been through a dramatic reset over the past few years — from streaming pressure and COVID shutdowns to consolidation, higher ticket prices, and a renewed focus on premium, in-theater experiences that audiences simply can’t replicate at home. As the industry recovers, exhibitors and studios alike are leaning into technologies that enhance engagement, drive higher ticket spend, and improve theater economics.We discuss D-BOX’s shift to a high-margin theatrical royalty model, the impact of new management, strong insider alignment, and how premium experiential formats are reshaping the future of moviegoing.For more information about Marrello Capital, please visit: You can Follow Dylan Marrello on Twitter/X @RagingBullCap: https://x.com/ragingbullcapWatch on YouTube:Summary:This podcast synthesizes the investment thesis for D-BOX Technologies, a haptic technology company positioned at a significant financial and strategic inflection point from Dylan Marrello, Founder & Portfolio Manager of Marrello Capital. The core argument Dylan makes is that despite a recent ~500% increase in its share price, D-BOX remains a compelling opportunity due to a convergence of structural, operational, and financial drivers.A new, disciplined management team has refocused the company on its high-margin theatrical royalty business, benefiting from the post-COVID recovery of the movie exhibition industry and a structural shift toward premium consumer experiences. D-BOX’s business model exhibits substantial operating leverage, with ticket royalties carrying nearly 100% incremental margins. Key growth drivers include a large, underpenetrated global theater base, increasing consumer preference for premium formats, and the potential for future royalty rate increases.Supported by unusually strong insider buying and a valuation that remains modest relative to premium peers such as IMAX, D-BOX represents a differentiated opportunity within a recovering and evolving theatrical ecosystem.1. The Macro Theatrical Landscape: An Industry in TransitionPost-COVID Recovery and ConsolidationThe global theatrical exhibition industry has endured significant disruption from streaming adoption and pandemic-related closures. This period triggered widespread consolidation and capital destruction, reshaping the competitive landscape.* Financial trauma: Major operators such as AMC became highly leveraged, while Regal (the #2 U.S. operator) entered bankruptcy.* Capital cycle dynamics: The exit of capital and weaker competitors has improved industry structure for surviving operators.* Box office recovery: Global box office revenues have rebounded to roughly 80% of 2019 levels. Importantly, this recovery has been driven more by higher ticket prices than by attendance growth, demonstrating renewed pricing power.Structural Shift Toward Premium ExperiencesAs at-home viewing has become ubiquitous, theaters have responded by upgrading the in-person experience—consistent with historical responses to prior technological disruptions (e.g., TV, VCRs).* Premiumization strategy: Operators are emphasizing premium formats such as IMAX screens and experiential technologies like D-BOX.* Disproportionate value capture: Premium technology providers capture an outsized share of industry economics. IMAX, for example, trades at ~25–30x earnings and commands a substantial enterprise value despite owning a small percentage of total screens. In China, IMAX represents ~1% of screens but ~6% of box office share.* Operator validation: Cineplex reports that over 40% of its ticket revenue now comes from premium formats, confirming premium offerings as a central revenue driver.2. The D-BOX Technologies Business Model and Value PropositionCore Technology and EconomicsD-BOX Technologies provides a differentiated cinematic experience through proprietary motion (haptic) technology.* Haptic experience: D-BOX installs motion actuators into theater seats, programmed with film-specific choreography.* Dual revenue streams:* Hardware sales: One-time installation revenue with ~30% gross margins.* Ticket royalties: Recurring royalties on each D-BOX ticket sold, carrying near-100% incremental margins.* Ecosystem alignment:* Exhibitors: Higher ticket prices and increased attendance.* Studios: Enhanced box office results and direct collaboration with D-BOX on film choreography.* Consumers: A differentiated, premium viewing experience.This alignment positions D-BOX at the center of the theatrical value chain, enabling it to earn attractive economic rents.3. The Inflection Point: Strategic and Financial CatalystsManagement Overhaul and Strategic RefocusD-BOX has undergone a complete management reset, including the appointment of a new CEO and CFO, follo

My guest on the show today is Paul Cerro, Founder and CIO of Cedar Grove Capital Management, and today’s conversation is all about fallen angels — once high-profile companies that collapse due to poor execution, leverage, or macro pressure, but can become some of the most mispriced and compelling opportunities in the market.Paul breaks down the anatomy of a fallen angel, why these setups create structural market inefficiencies — especially in illiquid micro-caps — and how forced selling, headline-driven reactions, and information scarcity can disconnect price from fundamentals. Most importantly, he explains the key dividing line between a genuine opportunity and a value trap: management credibility. In micro-caps, direct access to leadership gives investors a rare ability to test their assumptions and validate the story before making a high-conviction bet.We also zoom out to the macro landscape, where Paul sees 2026 shaping up as a major buyout year for fallen companies. With private equity sitting on record dry powder — and the potential for rate cuts — consumer-facing businesses, retailers, restaurants, and even selected real estate names could become prime acquisition targets.And then we dig into a fascinating case study: Weight Watchers (WW) — a company Cedar Grove originally shorted into bankruptcy, and one Paul now views as a compelling post-reorg long. He walks us through the dramatic deleveraging, the mandatory cash-sweep that accelerates equity value creation, and the company’s strategic pivot toward a holistic wellness model that integrates behavioral coaching with GLP-1 medications. It’s a rare look at how a fallen angel can move from short to long purely based on fundamentals, incentives, and structure.This episode is a deep dive into special situations, fallen angels, restructuring dynamics, and the psychology required to separate opportunity from permanent impairment.And for full disclosure, Paul mentions a number of companies today, and I’m not a shareholder in any of them.For more information about Paul Cerro and Cedar Grove Capital Management, please visit: https://www.cedargrovecm.com/Watch on YouTube:Summary:This podcast synthesizes an in-depth discussion on the investment theme of “fallen angels,” particularly within the microcap universe. A fallen angel is defined as a company with high brand equity and public awareness that has experienced a precipitous or gradual decline in its stock price due to poor execution, management missteps, or macroeconomic pressures.These situations can create significant market mispricing due to:* Forced selling by funds* Inherent illiquidity in smaller stocks* Investor overreactions to negative headlinesThe key to distinguishing a true fallen angel opportunity from a value trap lies in deep analysis of management’s credibility, honesty, and communication. In the micro-cap space, where investors can directly access management, this is a clear advantage after a period of underperformance.The primary case study examined is Weight Watchers (WW)—a classic fallen angel that recently emerged from bankruptcy. The post-restructuring long thesis centers on a dramatic deleveraging of the balance sheet (debt reduced from ~$1.6B to $465M), a mandatory cash sweep accelerating further debt repayment, and a compelling strategic repositioning as a holistic wellness provider integrating behavioral expertise with rising demand for GLP-1 medications.Defining and Identifying “Fallen Angels”Cerro, CIO of Cedar Grove Capital Management, defines a fallen angel as a company that once possessed a high-profile brand or major public attention before experiencing a significant decline. Its prior visibility is what separates a fallen angel from an unknown company that simply performed poorly.Key characteristics of a fallen angel:* High Brand Equity — a household or widely recognized name* Meaningful Decline — caused by execution failures, structural issues, or macro headwinds* Public Awareness — the brand remains in the public consciousnessExamples cited:* Sweetgreen (SG) — widely known but sharply devalued* Lululemon (LULU) — a recent high-profile decline* Robinhood (HOOD) — a company written off after bottoming in 2022 before subsequently recoveringCauses of Market Mispricing and OverreactionIn the decline of a fallen angel, several structural elements—especially in micro caps—can lead to deep mispricing.1. Forced Selling by FundsLarge funds often liquidate positions due to mandates or reallocations. In illiquid micro caps, this selling drags the stock far below intrinsic value.2. Illiquidity as “Bug and Feature”* A bug for investors who must exit* A feature for patient investors who recognize temporary dislocations3. Scarce Information and Headline OverreactionsWith limited analyst coverage or alternative data, the market often overreacts to one headline, such as a guidance miss.4. Psychological BiasInvestors may misclassify a genuine deterioration as an “overreaction” to avoid admi

My guest on the show today is Jason Kirsch, Portfolio Manager at Rosen Partnership and co-architect of the firm’s Active Value Strategy — a concentrated, long-only, private-owner-style approach to investing in micro-cap companies across Canada, the U.S., and Europe.In this episode, Jason walks us through Rosen Partnership’s philosophy of thinking like private owners in the public markets: buying capital-light, high-ROIC compounders at meaningful discounts to intrinsic value; partnering with aligned management teams; and using “constructivism” — a collaborative, non-activist engagement style — to help unlock long-term value.We dig deep into how Jason builds a true knowledge edge: talking not just to management, but to former executives, board members, competitors, suppliers — anyone who can broaden the mosaic and create an informational gap most investors simply aren’t willing to develop. Jason also shares lessons learned from catalysts that didn’t play out, how misaligned incentives can turn a bargain into a value trap, and why understanding your own psychology is just as important as understanding any business.For more information about Rosen Partnership, please visit: https://www.rosenpartnership.com/We just announced our full slate of investor conferences for 2026, all in partnership with MicroCapClub. Our next major event is Planet MicroCap: LAS VEGAS, happening June 16–18, 2026, at the Bellagio. Registration is now open for that. And, later in the year, we’ll be heading back to Toronto, October 27-29, 2026 at the Arcadian Loft. The mission is to bring the best microcap investors and companies together to gather, connect, and grow. This includes your participation.We know you are putting your 2026 investor conference calendars together, and we’d like to humbly invite you to join us for one or both of them. Please visit www.planetmicrocapshowcase.com for more information. See you in Vegas and Toronto!Watch on YouTube:Summary:The core of the firm’s approach is the Active Value Strategy, a concentrated, long-only portfolio focused on micro-cap companies (under $1 billion market cap) across Canada, the U.S., and Europe.The strategy is rooted in thinking like a private owner of a public company, seeking long-term compounders trading at meaningful discounts to intrinsic value. Key criteria include:* High returns on invested capital* Capital-light business models* Management teams with significant “skin in the game”* Clear, thoughtful capital allocationThe investment process is exhaustive, extending research beyond management to former employees, board members, competitors, and suppliers. This depth of work is intended to create a “knowledge gap” that provides an edge. A defining feature of the firm’s approach is constructivism—collaborative engagement with management to unlock value, while stopping short of formal activism.Kirsch emphasizes that understanding oneself—biases, tendencies, reactions—is as essential as understanding the businesses themselves.Jason Kirsch: Background and Formative ExperiencesKirsch’s philosophy is shaped by academic grounding, hands-on experience, and exposure to markets during periods of extreme stress.Early Influences* Interest began in high school with a stock-picking competition.* Studied at McGill University in the Honors Investment Management program, where students launched and ran a regulated asset management firm.* Gained experience in both public markets and fixed income during the Great Financial Crisis, shaping his framework for risk and valuation.Hedge Fund ExperienceAfter graduating, Kirsch worked at three firms including Desautels Capital Management, Galliant Advisors, and Waratah Capital Advisors.Key lesson:“Learning the short side… you have to flip the script on every single name you’re looking at.”This cultivated a deep appreciation for margin of safety, and the ability to analyze every investment from both long and short perspectives—discipline he brings into a long-only format today.Founding the StrategyIn March 2022, Kirsch partnered with Brian Rosen to launch the Active Value Strategy.Their catalyzing observation:“Amazing opportunities—companies trading extraordinarily cheaply at huge discounts to their net asset value.”The Rosen Partnership Active Value StrategyA disciplined, research-heavy, concentrated approach centered on high-conviction ideas.Core Philosophy* Concentrated portfolio: Typically ~10 names representing the majority of assets.* Geographic focus: Canada, the U.S., and increasingly Europe.* Private-owner mindset:“Would we want to own this business privately at this price?”* Investment goal: Own “fantastic businesses that compound naturally” and ideally never sell—potential three, five, or ten-baggers.Key Investment CriteriaInvestment Process and Due DiligenceA process designed to uncover overlooked ideas and develop a knowledge-based edge.SourcingTo build the strategy, the team:“Looked through every single publicly traded name in Canada below a

My guest on the show today is Kenny Chan, Founder and Portfolio Manager of Korwell Capital. Kenny is only 23, but he’s built an investment philosophy rooted in the classics — Peter Lynch, Joel Greenblatt, Warren Buffett — and adapted with a modern, high-conviction approach. His north star: “Buy Phil Fisher–like businesses at Graham-like prices.”Kenny walks us through the four categories that define his framework: misunderstood Buffett-like compounders, deep Graham-style value plays, capital-cycle opportunities, and turnarounds. We discuss how he launched Korwell Capital straight out of college, and how investing his own convictions — not academic theory — drives his process.We dig into two examples that bring this to life. First, Advance Auto Parts, where Kenny saw a rare combination of capital-cycle tailwinds, industry consolidation, and a fixable integration problem — creating a classic turnaround at a very cheap price. Second, Trubar, which received a takeover bid on the day of our interview. Kenny breaks down why he viewed the company as a niche brand with a durable moat, why the sale undervalues its long-term potential, and the critical lesson he’s taking away: understand management incentives before you invest.We wrap with Kenny’s advice for aspiring managers — especially the importance of writing publicly, testing your theses, and building a network through the quality of your ideas.We talked about a number of companies in today’s episode, Kenny is a shareholder of Advance Auto Parts and Trubar, and I am not a shareholder in any of the names mentioned.For more information about Kenny Chan and Korwell Capital, please visit: https://korwellcapital.com/Watch on YouTube:Summary:His central thesis is to buy “Phil Fisher–like companies at a Graham-like price,” an idea he executes across four primary investment categories:* Misunderstood Buffett-like companies* Graham-like deep value opportunities* Capital cycle plays* TurnaroundsThe analysis includes detailed case studies illustrating how Chan applies this framework in practice. His investment in Advance Auto Parts demonstrates how capital cycle and turnaround principles can converge within a consolidated, counter-cyclical industry. Meanwhile, the takeover bid for Troubar, a core holding, provides insight into Chan’s thinking around brand-driven moats and the importance of aligning with management incentives for long-term value creation.The podcast concludes with Chan’s reflections on market inefficiencies and his advice for aspiring fund managers—particularly the importance of publicly testing investment theses to build skill, conviction, and a professional network.1. Kenny Chan and the Founding of Korwell Capital1.1 Background and InfluencesKenny Chan’s interest in business began early, inspired by watching his father run a comic book store. This curiosity evolved into a habit of reading business news and, eventually, classic investing literature. His passion was ignited by Peter Lynch’s One Up On Wall Street, which he says “absolutely blew my mind.” He soon immersed himself in the works of Joel Greenblatt, Seth Klarman, Warren Buffett, and other value-investing legends—often reading during daily commutes to school.Chan attended NYU Stern specifically to pursue a career in value investing, supplementing his academic work with internships in private equity and hedge funds.1.2 Path to Founding Korwell CapitalAfter graduation, Chan’s planned private equity role fell through when the fund shut down. He instead joined a small public equity shop. Just months into the role, he approached his boss—who had developed confidence in him—and successfully secured backing to launch Korwell Capital.Asked about the confidence to start a fund at 23, Chan credits two factors:* Opportunity – His boss believed in his ability and provided capital.* Conviction – A strong desire “to be able to research stocks in the way that I believe and ultimately to invest in my own convictions.”He emphasizes that while his strategy is “not new,” he believes he has “a different perspective of [value investing] insights than most investors.”2. Korwell Capital’s Investment Framework2.1 Guiding PhilosophyChan’s process is built around first-principles thinking:“A first principles understanding of business to understand a business beyond just its financial statements.”He cites Li Lu’s concept of “insights”—the handful of fundamental principles Buffett used to outperform his mentors.His core thesis:**• “Buy Phil Fisher–like companies at a Graham-like price.”• “Buy Graham-like companies at a very, very cheap price.”**This requires deep qualitative understanding to identify stocks temporarily mispriced relative to their true business quality.2.2 The Four Investment CategoriesCategoryDescriptionMisunderstood Buffett-like CompaniesHigh-return-on-capital businesses with strong reinvestment opportunities, available at a cheap price. Very rare.Graham-like OpportunitiesCompanies trading far below tangibl

My guest on the show today is Jacob Stephan, Senior Research Analyst at Lake Street Capital Markets. He recently authored a “Crypto Industry” white paper, and I invited him on to break it down. In this episode, Jacob lays out why digital assets have crossed into institutional viability—a “normalization phase” driven by clearer regulation, enterprise-grade infrastructure, and real corporate adoption.We discuss the internet-style adoption curve (crypto at ~7% global penetration), why regulation is the cornerstone of investability (FIT 21 progress, the new FASB fair-value accounting, and pending clarity in the U.S.), and how stablecoins—“dollars with an API”—are emerging as the killer app with multi-trillion settlement volumes. Jacob walks through concrete examples from Visa, Mastercard, and JPMorgan moving beyond pilots to on-chain settlement, and contrasts stablecoins’ payment utility with Bitcoin’s treasury/“digital gold” role.We also cover the nuanced risks: centralization at the access layer (custody, cloud, compliance), state-by-state regulatory differences, speculative micro-cap “crypto treasury” raises, and why bipartisan momentum reduces—but doesn’t eliminate—policy risk. Finally, Jacob shares the “picks and shovels” angle—cloud, fintech/payments, and semiconductors—as scalable ways to participate in the build-out without direct token exposure, and why even low single-digit institutional allocations could materially move the asset class.We discussed a number of crypto currencies in today’s episode. Jacob owns SOL, SUI and BTC, and for full disclosure, I also own BTC.For more information about Lake Street Capital Markets, please visit: https://www.lakestreetcapitalmarkets.com/Watch on YouTube:Summary:The central thesis is that digital assets have entered a phase of “institutional viability,” driven by regulatory progress, maturing infrastructure, and meaningful corporate adoption. Stephan argues that crypto is now in its “normalization phase,” analogous to the internet in the late 1990s, with global user penetration (~7%) mirroring the internet at its own early tipping point.The catalyst for this transition is the emergence of clearer U.S. regulation, which provides institutions with legal footing to participate without existential uncertainty. This regulatory shift is reinforced by institutional-grade custody and compliance infrastructure, as well as real corporate use cases—particularly among Visa, Mastercard, PayPal, Tesla, and JP Morgan—who are using blockchain rails for settlement efficiency.While Bitcoin is increasingly used by certain high-conviction companies as a long-term treasury asset, stablecoins have become crypto’s first major “killer app,” processing over $6 trillion in settlement volume in 2024.Key risks include centralization at core access points (custody, cloud services), speculative micro-cap token treasury raises, and regulatory uncertainty that remains unresolved. The most compelling investment opportunities are found in “picks and shovels” plays—cloud, fintech, and semiconductor companies powering blockchain infrastructure—offering exposure to sector growth without direct token risk.1. The “Crypto Normalization” Thesis: An Internet Adoption AnalogyStephan argues that crypto is entering its first true normalization phase, where it becomes “invisible infrastructure,” much like the internet during its early commercial rollout.Adoption Curve Parallels* Internet (late 1990s): 4%–8% global penetration* Crypto (2024): ~560 million users (~7% of global population)This matching penetration level suggests crypto is at a similar inflection point, with network effects driving accelerating adoption.Institutional Legitimacy as the Inflection PointLarge-scale participation from both Wall Street and Silicon Valley—along with improved regulation—has removed the “career risk” institutions previously faced in engaging with digital assets.Stablecoins as Crypto’s “Killer App”Just as email was the internet’s first mainstream use case, stablecoins and tokenization are crypto’s first broadly adopted applications—driving real-world settlement, not speculation.2. Core Drivers of Institutional ViabilityStephan frames institutional adoption around three pillars: regulation, infrastructure, and corporate adoption.Regulation: The Cornerstone“The infrastructure made it usable, but regulations are ultimately what made it investable.“Key U.S. legislative developments:* FIT 21 Act – Passed House; establishes digital asset regulatory framework* Genius Act – Signed July 2024, effective 2027* Clarity Act – Pending in Senate; aims to finalize regulatory designationsThis bipartisan progress provides the legal clarity institutions required.Infrastructure: Institutional-Grade RailsCustody, compliance, and settlement systems have matured significantly. Major custodians and service providers now meet institutional security and reporting standards.Corporate Adoption: Validation Through UtilityMajor firms are integrating o

My guest on the show today is Gwen Hofmeyr, Founder and Senior Analyst at Maiden Financial. In this episode, Gwen walks us through her unique research methodology — which she refers to as “financial archaeology.” This is a process built around extremely deep, original investigative work designed to uncover uncommon information — insights that simply aren’t available in typical company reports or mainstream research.We discuss how Gwen routinely spends 200 to 600 hours analyzing a single company, validating market share by breaking down thousands of individual products, and constructing an understanding of a business that is entirely independent of management narrative and sell-side opinion. We also talk about how this approach leads to owner-level conviction, and why that conviction matters so much in the microcap universe, where volatility is high and broad consensus is often absent.Gwen also shares why some of the most compelling opportunities she’s finding today are in Europe, particularly in industrial and lagging-edge technology companies, and how AI is actually increasing the value of deep human research — not replacing it.For more information about Maiden Financial, please visit: https://www.maidenfinancial.io/Watch on YouTube:Summary:Executive SummaryHofmeyr’s central thesis is what she calls “financial archaeology”—a form of extremely deep, original, and time-intensive research designed to uncover uncommon information that the market has not yet priced in. Her approach requires developing a granular, owner-level understanding of a business by analyzing unit-level product data, platform inventories, and geospatial dynamics rather than relying on high-level financial statements or management narratives. A typical research project requires 200–600 hours of work.She currently focuses on opportunities in Europe, particularly in lagging-edge technology and industrial companies where market inefficiencies are structurally persistent and deep work provides a durable edge.I. Founder Background and Origin of Maiden Financial* Hofmeyr studied political science before pivoting to finance.* Began serious self-study in 2017, reading ~36 investment books in the first year.* Influenced heavily by Peter Lynch, Warren Buffett, and Charlie Munger.* Documented her early mistakes in a self-published book, The Halfway Crustacean, applying Munger’s principle of learning by examining errors.* Was hired by Andrew Wilkinson to work at Tiny, later working at its family office Folly Partners, where she developed her research framework independently.* Founded Maiden Financial after realizing most firms did not have the infrastructure or culture to support very deep, original research.“There’s a real lack of in-depth research on the sell side. I wasn’t getting the information necessary to think like an owner.”II. Financial Archaeology: Core PhilosophyHofmeyr evaluates companies as if each were an undiscovered archaeological site—requiring unique methods, curiosity, and patience.Core Principles* Uncommon information → uncommon outcomes.* Hypothesis-driven research: Start with an anomaly worth explaining.* Iterative excavation: Question → answer → dig deeper → repeat.* Self-sufficiency: Conviction should come from firsthand understanding.* Time intensity: 200–600 hours per company is typical.III. Research Process and Investable UniverseUniverse Criteria* Free float: preferably >$200M (though she will consider >$20M).* Operates in jurisdictions with strong rule of law.* Prefers owner-operators and businesses where management incentives align with shareholders.* Comfortable in complex business models others avoid.* Valuation matters but is secondary to understanding competitive structure.Trigger for a Deep Dive* Always begins with a data anomaly, such as:* Unusually high ROE* Superior margins vs. peers* Pricing power not reflected in valuationExample: Malaxisus (Belgium)* Had industry-leading ROE despite being small.* Required analyzing 3,000+ products to understand niche dominance in automotive magnetic sensors.IV. The “Testing Market Share” FrameworkHofmeyr independently verifies competitive positioning rather than accepting reported market share.MethodPurposeExample InsightProduct-level comparisonReveals segment dominance disguised in broad numbersCrane maker claiming 30% share actually dominated heavy-duty segmentPlatform inventory analysisShows real-world demand footprintCompares product count across resellers/manufacturersGeospatial mappingHighlights moat formed by physical distribution & territory strategyStore clustering reveals strategic market captureV. Management Engagement* She does not speak with management until after completing her full analytical process.* This prevents narrative influence and identifies exactly where clarification is needed.* Companies often appreciate receiving her report—it resembles paid strategic research.VI. Publication and ActionabilityHofmeyr publishes when:* A clear asymmetric return exists

My guest on the show today is Doug Porter, Portfolio Manager and Senior Research Analysts at Acuitas Investments. Doug and his team recently published a new white paper titled, “The Case for MicroCap.” For most of you listening in, you’re already a diehard MicroCap-per, and we’ve all succumbed to the altar to the merits of hunting in inefficient markets.Having said that, I invited Doug on here to not only remind us why we are here, why we hunt for the best investment ideas in our neck of the woods, but more importantly, in my opinion, to showcase why in 2025, the case for investing in MicroCaps has merit as a place to build wealth and allocate capital.Doug breaks down the structural inefficiencies and long-term opportunity in the micro-cap equity market — a segment that remains largely ignored by big institutions, but continues to be fertile ground for alpha generation.We discuss why micro-caps have historically outperformed in 84% of rolling 30-year periods, the critical role of active management in filtering out the riskiest names, and why Doug believes we’re in the early innings of a new cycle that favors smaller companies.Doug also explains how “Stable Operators” — profitable, cash-generating niche businesses — are among the most compelling yet overlooked opportunities in today’s market, and why a dedicated micro-cap allocation can offer diversification, M&A upside, and even a liquid alternative to private equity.Finally, we cover Acuitas’s approach to identifying skilled micro-cap managers across the globe — and how this ecosystem of small, research-driven funds continues to uncover value where few others are looking.For more information about Doug Porter and Acuitas Investments, please visit: https://acuitasinvestments.com/Watch on YouTube:Summary:Acuitas argues that micro-caps represent a structurally inefficient and neglected asset class, offering fertile ground for long-term alpha generation through skilled active management.Key Takeaways:* Structural Inefficiency: Large institutions and sell-side analysts systematically avoid micro-caps due to liquidity constraints and the minimal impact small positions have on large portfolios. This results in less coverage, slower information flow, and greater pricing inefficiency.* Historical Outperformance: The “micro-cap effect” has produced outperformance versus large caps in 84% of rolling 30-year periods, driven by neglect and undervaluation.* Active Management Advantage: Skilled active managers have generated 450+ basis points of annualized alpha over the past decade through deep research and risk avoidance.* Cyclical Opportunity: The market appears to be in the early innings of a new cycle favoring micro-caps, with valuation gaps and cycle lengths suggesting a coming reversion.* Most Attractive Segment: Within micro-caps, “Stable Operators” — profitable niche companies ignored by recent thematic rallies — represent the most compelling opportunity today.1. The Structural Opportunity in Micro-Cap EquitiesInstitutional Neglect and Resulting InefficienciesLarge institutions systematically avoid micro-caps due to:* Liquidity Constraints: Small float sizes make it difficult for large funds to build or exit positions efficiently.* Business Pressures: Firms focused on asset growth prioritize scalability, pushing research and products toward larger-cap stocks.* Inability to “Move the Needle”: A 100% return in a $200M micro-cap position is immaterial to a $50B fund.These structural constraints create enduring inefficiencies:* Fewer “Eyeballs”: The space is dominated by retail or part-time investors with limited professional coverage.* Slower Information Flow: News and filings take longer to be fully reflected in stock prices.* Greater Mispricing: The absence of analysts and institutional capital leads to persistent valuation anomalies.Porter emphasizes this as a permanent feature, not a passing one:“Those lessons… they haven’t changed. They aren’t likely to change.”As large firms continue to consolidate, their growing scale only deepens the neglect of smaller companies.2. Historical Performance and Risk AnalysisThe “Micro-Cap Effect”* Performance Data: Micro-caps have outperformed large-caps in 84% of rolling 30-year periods.* Index Composition: Over 90% of the micro-cap index represents the smallest deciles of the market, compared to just 25% of most “small-cap” indices.* Drivers: The combination of low valuations and structural neglect produces consistent outperformance.Deconstructing Risk PerceptionThe high-risk perception of micro-caps is often based on broad, unfiltered universes.* True Source of Volatility: The riskiest companies — unprofitable, speculative, highly levered — distort the asset class’s overall volatility.* Active Advantage: Skilled managers avoid these “junk” names, creating portfolios that actually have lower risk and volatility than the index.Active investors benefit from the upside of the asset class “with a lot less risk.”3. The Critical R

My guest today is Sage Berryman, CEO of Aluula Composites (TSXV: AUUA). Aluula is focused on revolutionizing material science. Founded in 2019, the company has developed a patented process for producing ultra-high molecular weight polyethylene (UHMWPE) composites without glues—fusing at the molecular level to create materials that are lighter, stronger, more durable, and fully recyclable. This “mono-material” design also enables circularity and addresses the growing demand for PFAS-free solutions.The company first gained traction in windsports through its Ocean Rodeo subsidiary, but following a 2023 RTO and a 2024 strategic refocus under Sage’s leadership, Alula divested Ocean Rodeo to concentrate on becoming an ingredient brand. Today, Aluula is targeting both premium outdoor markets—packs, tents, wind sports—and larger commercial and industrial applications, where strength, durability, and recyclability are key.Aluula will be presenting at our conference in Toronto, the Planet MicroCap Showcase on October 21-23, and I invited her on to discuss:* The science behind Aluula’s glue-free composites* Strategic pivot from Ocean Rodeo to ingredient branding* Long but improving sales cycles for adoption* Differentiation from commodity materials like polyester and nylon* Expansion plans into higher-volume industrial applications* Financial discipline, with recent margins of 40–45%For more information about Aluula Composites, please visit: https://aluula.com/Watch on YouTube:Summary:I. Executive SummaryAluula Composites is a publicly traded company revolutionizing material science by combining high performance and sustainability in a single product. Founded in 2019, Aluula has developed a patented glue-free fusing process that enables the creation of multi-layer composites made from ultra-high molecular weight polyethylene (UHMWPE). These materials are significantly stronger, lighter, and more durable than conventional alternatives.Aluula’s unique mono-material design also allows for full recyclability—offering PFAS-free and circular solutions across diverse industries. Following a 2023 reverse takeover (RTO) and a major strategic refocus in 2024 under CEO Sage Bryman, Aluula is now positioned for aggressive growth, targeting both premium performance markets and high-volume commercial applications.II. Key Themes and InsightsA. Core Innovation and Differentiation“Revolutionizing the material science space where you can combine high performance and sustainability in the same product.” – Sage Bryman* Patented Glue-Free Fusing Process:Aluula’s breakthrough lies in its ability to fuse multi-layer composites at a molecular level without adhesives. This eliminates degradation associated with glues and produces cleaner, more durable bonds.* Superior Strength and Lightness:The glue-free process results in composites that are stronger, lighter, and more durable than traditional glued materials (e.g., DaNeeA).* Mono-Material & Fully Recyclable:Because Aluula products are made entirely from polyethylene, they can be fully recycled at end of life—an essential feature as industries seek PFAS-free, circular materials.* Weldable Construction:Unlike most fabrics that require stitching or taping, Aluula materials can be welded, offering improved waterproofing, strength, and reduced weight—ideal for high-performance gear.* Customization:The technology allows tuning of UHMWPE strength and layering to meet specific needs—ranging from stiffness to ultra-light waterproofing and gas retention.B. Company History and Strategic Refocus* Founded in 2019: Created by two wind-sport enthusiasts—one a chemist, one an entrepreneur—seeking stronger, lighter materials for kites and wings.* Early Validation: Initially commercialized through Ocean Rodeo, where the material proved its superior performance in demanding wind-sport environments.* Public Listing (RTO, 2023): Aluula became public through a reverse takeover.* Strategic Refocus (2024): Under CEO Sage Bryman, the company streamlined and reoriented its strategy:* Stabilized operations and clarified the core value proposition.* Divested Ocean Rodeo to avoid conflicts with customer brands.* Built a strong executive team and transitioned from reactive (“inbound”) sales to a proactive global outreach strategy.* Intellectual Property Estate: Robust IP portfolio of patents and trade secrets protecting both material formulation and construction techniques.C. Market Strategy and Target Customers* Ingredient Brand Model:Aluula functions as a B2B ingredient brand, co-branding with partners (e.g., Arc’teryx) that integrate its materials into premium products.* Premium Product, Premium Price:Positioned at the top end of performance materials, commanding premium pricing justified by unique strength, sustainability, and recyclability.* Diversified Market Focus:* Performance Outdoor (Consumer-Facing): Packs, tents, wind sports, and sailing products—key for brand visibility.* Commercial & Industrial (High-Volum

My guest on the show today is Balkar Sivia, Founder & Portfolio Manager at White Falcon Capital Management. In this episode, Balkar shares his unique path from engineering to investing, and why he built White Falcon around an unconstrained, opportunistic philosophy — one that rejects traditional style boxes like “growth” or “value.”We dive into White Falcon’s three “engines” — Compounders, Value Today, and Value Tomorrow — and how, for Balkar, this structure should result in part of the portfolio always working. Balkar walks through case studies, explaining how he looks for quality businesses facing temporary challenges, and how narrative shifts and multiple expansion drive returns over a three-year horizon.We also discuss the lessons he’s learned in managing value traps, how he’s thinking about AI as an investor, and the importance of evolving your process over time. At the heart of it all is a focus on quality management, incentives, and high-conviction positions in a concentrated 20-stock North American portfolio.For more information about White Falcon Capital Management, please visit: https://www.whitefalconcap.com/You can Follow Balkar Sivia on Twitter/X @WhiteFalconCap: https://x.com/whitefalconcapWatch on YouTube:Summary:Inspired by Warren Buffett’s early partnership, White Falcon’s portfolio is structured around three “engines”:* Compounders – core high-quality holdings* Value Today – deep value situations facing temporary issues* Value Tomorrow – growth companies with depressed valuationsThis framework ensures some portion of the portfolio is always performing while allowing dynamic capital allocation. The goal: identify businesses where the narrative can shift positively over three years, generating returns from both earnings growth and multiple expansion.1. Background and Firm Genesis* Non-traditional start: Began as an engineer, investing his paychecks before transitioning into finance.* Experience:* Worked with Tim Maldane in Vancouver (protégé of deep value investor Peter Kundle).* Spent 8 years at Burgundy Asset Management (Toronto), focusing on quality value.* White Falcon founded November 2021: Peak of the market, driven by his desire to run a portfolio and to escape restrictive “industry boxes.”2. Core Investment Philosophy: Unconstrained and Opportunistic* Rejects rigid labels (e.g., large-cap growth, small-cap value).* Inspired by Buffett/Munger’s “do whatever it takes” approach.Ultimate Goal: Within three years, capture earnings growth + multiple expansion through narrative shifts.3. The Investment Process: Quality and Conviction* Universe: North America.* Portfolio: ~20 highly concentrated stocks → demands high conviction.* Quality defined: Management and culture matter “equally or more” than moats or capital returns.* Diligence Process:* Monitor earnings and IR contacts.* Deep dive when stock falls on temporary issues.* Consult expert networks on culture/business quality.* Final call with management before investing.4. Case StudiesGrifols (GRFS) – Quality Through a Perfect Storm* Plasma derivatives oligopoly, high barriers.* Hit by supply shortages and governance questions.* Brookfield bid signaled quality, board action addressed governance.* Valuation: ~10x EBITDA vs historical 12–15x.Rentokil (RTO) – “Value Today” Turnaround* Pest control, recurring revenues, route density moat.* Merger with Terminix poorly executed → discount to peer Rollins (ROL P/E 50 vs RTO 16).* Catalyst: Nelson Peltz activist role + management turnover.* Potential to re-rate from turnaround to compounder.Endava (DAVA) – Managing Value Traps* IT outsourcing, bought after big drop.* Disruption: macro slowdown + AI uncertainty.* Red flag: repeated broken guidance.* Sold to preserve “mental capital.”5. Evolving Perspectives and Learnings* Value Traps: Don’t avoid at all costs, but cut quickly when thesis fails.* AI: Focus on “AI-adjacent” quality/value plays like AMD.* Investor Evolution:* Accept higher multiples for quality.* Lesson from dot-com bust: don’t abandon growth, but buy it cheap.* Focus on unit economics over GAAP profit in select SaaS names.6. Concluding Advice* No Shortcuts: Hard work drives returns.* Primary Sources: Focus on filings (10-K, 10-Q).* Incentives Matter: Management pay structures dictate behavior.* Adaptability: Keep evolving, learning from mistakes, and refining process.Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the Planet MicroCap YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well as expert commentary from some familiar guests on the podcast.Subscribe here: http://bit.ly/1Q5YfymClick here to rate and review the Planet MicroCap PodcastThe Planet MicroCap Podcast is brought to you by SNN Incorporated, The Official MicroCap News Source, and the Planet MicroCap Review

My guest on the show today is Ben Finser, Founder and Portfolio Manager at Fin Capital Management. In this episode, Ben shares his journey from a decade at Kabouter Management to launching Fin Capital in 2024, and how his entrepreneurial background shaped his passion for analyzing and owning high-quality businesses.We dive into his exclusive focus on international micro and small caps, a “target-rich universe” of some 15,000 listed companies in developed markets outside the US. Ben explains why these overlooked businesses — often with no sell-side coverage and tiny trading volumes — present compelling opportunities for investors willing to dig deeper.Ben also details his boots-on-the-ground due diligence process, including traveling globally to meet management teams, comparing companies to global peers, and navigating cultural nuances when assessing business quality and long-term growth. We talk about his “pseudo-activist” engagement approach, where he works alongside management to improve disclosures, expand investor outreach, and unlock value.Finally, Ben shares a case study of a Japanese procurement software company he helped bring onto investors’ radar, and offers perspective on why US outperformance may be cyclical — and why international microcaps deserve a place in more portfolios.For more information about Ben Finser and Fin Capital Management, please visit: https://fincapitalmanagement.com/Watch on YouTube:Summary:I. Background and Investment PhilosophyBen Finser’s passion for investing began early through entrepreneurial ventures—a mountain bike cleaning business at age 11, followed by a gardening business and a healthy vending machine venture in high school. These experiences sparked a curiosity about business quality and what differentiates high- from low-quality companies.His career path included internships and a decade at Kabouter Management, a firm focused exclusively on international micro and small caps. In May 2024, he launched Fin Capital Management.Finser describes himself as a long-term investor who seeks high-quality businesses to own for years, taking advantage of pricing mismatches created by structural inefficiencies. His concentrated fund emphasizes:* Financial discipline (e.g., net debt/EBITDA * Self-financing growth* Proven business models with resilience across cyclesII. International Microcap Opportunity: A Target-Rich UniverseFinser invests exclusively outside the U.S. in developed markets. He describes this as a “target-rich universe” of ~15,000 listed companies, compared with a shrinking U.S. listed base.Key structural drivers of inefficiency:* Abundance of undercovered companies: Many with zero analyst coverage, especially in Japan, which has as many listed companies as the U.S.* Cultural differences in capital markets: In Europe, for example, wealth is often held in cash, bonds, or real estate, reducing equity market sophistication.* Small cap anomaly: As funds grow, they “graduate” out of microcaps, leaving space for smaller managers.* Global comparison advantage: As a global investor, Finser benchmarks local companies against international peers to find mispricings.He screens for businesses that are too small for larger funds (under $2B market cap or decades of operating history and proven durability.III. Boots-on-the-Ground Due Diligence and EngagementA. Due Diligence Process* Screening: Quarterly global screens to identify small, resilient businesses.* Travel-driven research: Trips are planned around clusters of interesting companies.* On-site meetings: Focused on understanding recurring revenue, low churn, long-term growth themes, and valuation relative to peers.* Thesis testing: Meetings include direct feedback from management, ideally with key decision-makers.B. Cultural NuancesFinser stresses the importance of cultural understanding. Example: In Japan, “yes” often means acknowledgment, not agreement. His European background helps him adapt communication across markets.C. Advantage as a Foreign Investor* Seen as a positive signal by local companies, who admire U.S. investors.* Local investors often disappointed post-IPO; foreign long-term focus is refreshing.* Easier meeting access—management appreciates the effort of international travel.* Builds networks via local investors and brokers.D. Active Engagement (“Pseudo-Activism”)Finser takes a collaborative approach, positioning himself as a shareholder partner to help accelerate re-rating:* Encourage English-language earnings calls and materials* Support international roadshows* Improve investor presentations (e.g., highlight customer stickiness, clarify metrics)* Suggest mid-term targets for clarity* Occasionally advise on M&A or incentive plans when “wallcrossed”IV. Case Study: Japanese Procurement Software Company* Situation: Sub-$100M market cap, ignored by investors, misunderstood due to gross vs. net revenue reporting.* Actions: Finser helped them clarify disclosures, highlight customer retention (no losses in

My guest today is Sean Black, CEO of Happy Belly Food Group (CSE: HBFG | OTCQB: HBFGF). Happy Belly is a Canadian consolidator of emerging Quick Serve Restaurant (QSR) brands, with expansion plans into the U.S. The company started as Plantingco, a niche plant-based CPG business, but under Sean’s leadership pivoted to become food agnostic—focused on scalable, cash flow positive QSR concepts.The model is straightforward: acquire small, profitable, debt-free brands, grow corporate stores with free cash flow, and scale through franchising. The portfolio is intentionally diversified with no duplication—think Rosie’s Burgers as a Shake Shack equivalent, IQ Foods as Canada’s Sweet Green, and Pyro as a Cava-style concept. I spoke with Sean to learn more about the company, as well as:* The pivot from Plantingco to QSR consolidation* M&A model and brand strategy * Growth targets and the $100 million milestone* Risks, alignment, and long-term visionFor more information about Happy Belly Food Group, please visit: https://happybellyfg.com/Watch on YouTube:Summary:OverviewHappy Belly Food Group is a publicly traded Canadian company focused on consolidating and growing emerging food brands, primarily in the Quick Serve Restaurant (QSR) sector. While Canada is the current focus, expansion into the U.S. is underway. 1. Business Model: Consolidator of Emerging Food BrandsCore Strategy: Happy Belly identifies small, profitable, growth-oriented QSR businesses and seeks to double EBITDA within 24 months post-acquisition.Evolution from Niche to Agnostic:* Originally founded as Plantingco, a plant-based CPG business.* Under Sean Black, the company pivoted to become agnostic to the food space, expanding beyond CPG and plant-based to include QSR and non-plant-based brands.“Originally, the company was founded as Plantingco... when I joined we realized plant-based was still pretty niche. To become a company at scale, we needed to be agnostic—so we opened it up beyond CPG to QSR, plant and non-plant.”Hybrid Ownership Model: Corporate and franchised stores are combined, with free cash flow reinvested into corporate growth.“We’re a little more like McDonald’s, reusing free cash flow to accelerate corporate stores. Long-term, the mix will be ~10% corporate and ~90% franchise.”Diversified Portfolio: The goal is a balanced portfolio with no duplication. Each category is represented by one brand—Canadian equivalents to successful U.S. concepts.“If we’re going to have a burger brand, we’ll only have one... If you look at Sweet Green, we have IQ Foods; Cava, we have Pyro; Shake Shack, we have Rosie’s.”2. Growth Trajectory & Financial Performance* 13 consecutive record quarters of system sales, recently surpassing $16M.* Targeting $100M in annual system sales and 100 stores by early 2026.* Successful shift from CPG dominance (>50% of revenue) to QSR (>85% of revenue, >98% of system sales).* All brands acquired are cash flow positive and debt-free; company debt is minimal (~$150K secured).3. Acquisition StrategyCriteria:* Small, profitable, debt-free businesses.* Growth potential to significantly expand EBITDA post-acquisition.Deal Structure:* Acquire 50% initially, with exclusive rights to purchase the rest within 3–5 years.* This phased approach reduces risk by allowing operational insight before full ownership.“That’s been a sweet spot for us—partner first, peek under the hood, then buy the rest. It significantly de-risks for us and our shareholders.”Discipline: Willing to walk away if financial or operational standards aren’t met.“I’ve been a pain in the ass to a lot of people because I won’t budge if I believe it’s right.”No Duplication: Avoids overlapping categories within the portfolio.“I’ve watched others with duplication—it’s like having twins and deciding which one gets attention. It’s really hard.”4. Portfolio Highlights* Heal Wellness (Sai Bowl chain): Acquired with 2 stores doing $1.4M; now 27 stores, on track for 30+ this year and >100 stores with $100M sales within 24 months.* Rosie’s Burgers: Expanded from 2 to 8 stores, with 20–30 projected by 2026.* IQ Foods (Sweet Green equivalent): 4 stores at acquisition; now 6, with 7th opening soon. Profitable and debt-free, unlike some U.S. peers.* Lumberheads Popcorn & Holy Crap Cereal: Smaller, cash flow positive CPG brands. Non-core, could be sold if an attractive offer arises.5. Operational Efficiency & Franchisee Relations* Growth target: 30–50 new restaurants per year across 10 brands (3–5 openings each).* Existing franchisees are a key driver of growth; some own double-digit units.“One of our franchisees is on store number 13 and has purchased 30.”* Lease agreements signed 3–18 months ahead provide visibility into openings through 2025–26.* Geographic diversification across Canada (from Vancouver Island to PEI), with Texas as the first U.S. test market.6. Risks & Mitigations* Management Risk: Loss of key executives is material. Mitigated by strengthening the team (e.g., new VP of

My guest on the show today is Iggy, better known as Iggy on Investing, a deep value investor and blogger. In this episode, Iggy shares how the COVID-19 lockdown gave him the time to dive into investing, turning inspiration from Buffett and Graham into a disciplined deep value strategy focused on small, illiquid companies trading at substantial discounts to book value.We discuss his “Young Buffett”–style approach—seeking firms at 0.3× to 0.5× book with strong ROIC and catalysts, especially in overlooked European markets—as well as the role his blog plays in clarifying his thinking, building conviction, and holding through long, boring periods.Iggy also walks us through hard-learned lessons—from the importance of staying within your circle of competence and scrutinizing corporate governance, to navigating shareholder activism via a “stag hunt” scenario. And he shares how he’s building investor community in Europe, including hosting his 2nd Annual Benelux Investor Event on Saturday, September 27.For more information about Iggy on Investing and to attend his upcoming event, please visit: You can follow Iggy on Investing on Twitter/X: https://x.com/iggyoninvestingWatch on YouTube:Summary:1. Origins of Passion and Early Influences* Iggy’s investing journey began during the COVID-19 pandemic (2020), when he finally had “a boatload of time on [his] hands” to study.* He was already familiar with Buffett and The Intelligent Investor, but the lockdown provided the push to act.* Earlier, while working at a private bank, he observed bankers “gambling their money away in the market,” which reinforced his belief in Buffett’s idea that markets aren’t always efficient.2. Deep Value Philosophy and Strategy* Style: Follows “Young Buffett”-style deep value investing, often in small, illiquid stocks trading at discounts to book value.* Ideal Setup: Companies selling below book where he is confident they can earn a return on capital.* Key Traits of Targets:* Deep discount to book (0.5x or even 0.3x).* Strong ROIC track record (e.g., 19% historically).* Sometimes catalysts, such as real estate worth more than market cap.* Geographic Focus: Primarily Europe, where he sees more overlooked opportunities, but remains open to global ideas.* Acknowledges ignoring large caps in recent years “has not necessarily been the best decision.”3. Writing and Public Learning* His blog, Iggy on Investing, is central to his process. Writing helps clarify his own thinking and invites feedback.* Writing enforces “commitment bias” that aids in holding long-term.* He calls writing his “#1 tip to anybody starting,” as it builds connections, accountability, and learning.4. Lessons Learned in 2.5 Years* Circle of Competence: Losses stemmed from straying outside it. “Any of the stocks that I’ve lost money on…I understood nothing.”* Good People Matter: Echoing Buffett, “You cannot make a good deal with bad people,” learned firsthand in the Anexo case.* Valuation Provides Defense: Buying very cheap (P/E 3 that becomes 6) still offers margin of safety.* Holding Long-Term is Hard: Describes it as “very slow, very boring.” Writing and not investing full-time help discipline.* Governance Matters: Learned to scrutinize boards for true independence.* Private Owners & Buybacks: Large insiders understand buybacks but often only when buying out the whole company.5. Shareholder Activism & the “Stag Hunt” (Anexo Case)* Case: Anexo, a UK company trading below book. Majority owners tried to push through a “terrible deal,” offering unlisted shares/loan notes.* Stag Hunt: From game theory, minorities needed to coordinate to block the deal.* Outcome: Insiders executed a buyback at an “unfair price,” increasing their control to 75.1% and forcing delisting.* Lesson: Painful but eye-opening about governance risks, market mechanics, and the difficulty of activism.6. Avoiding Value Traps* Focuses on track record of ROIC and sensible capital allocation.* Prefers cheap companies that continue to compound, even slowly—“you are sort of sure to earn some form of return.”* This makes holding positions easier and reduces risk.7. Community and Meetups* Organizes investor meetups in Europe, which he sees as “a desert” compared to North America.* Events include ID dinners and guest speakers, with the goal of idea exchange and building community.ConclusionIggy embodies a disciplined deep value approach: prioritizing fundamentals, staying within his circle of competence, and learning from experience. His public writing both sharpens his analysis and fosters community, while his activism lessons underscore the importance of governance and management integrity.Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the Planet MicroCap YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well

My guest on the show today is Kayser Pravia, Founder of El Planeta Financiero. In this episode, Kayser shares his mission to expand financial literacy and microcap investing for Spanish-speaking investors worldwide.We discuss his evolution from day trading losses to a Buffett- and Lynch-inspired value investor, why he runs a concentrated portfolio, and his focus on recession-proof businesses with strong balance sheets. Kayser also talks about building El Planeta Financiero into a growing educational platform and investing community for Spanish speakers.For more information about El Planeta Financiero, you can subscribe to the YouTube channel here: https://www.youtube.com/@elplanetafinancieroYou can Follow Kayser Pravia on Twitter/X @elplanetaf: https://x.com/elplanetafWatch on YouTube:Summary:I. Introduction: The Mission of El Planeta FinancieroKayser Pravia, founder of El Planeta Financiero, is on a mission to bring financial literacy and stock market investing—particularly in small and micro caps—to Spanish-speaking communities. Pravia’s focus is “financial literacy for Spanish-speaking communities.” His journey began from recognizing a personal knowledge gap and has grown into a multi-platform educational initiative reaching hundreds of thousands of people.II. Humble Beginnings and the Spark of InvestingPravia’s interest in investing began during a psychology class in Kansas, USA, when a teacher asked who was investing in Apple stock:“Everyone had their hand in the sky... I was the only one in the classroom that wasn't investing at all.”That moment, combined with an early, unsuccessful attempt at day trading—“losing my money”—motivated him to seek better strategies. His mother gave pivotal advice:“No, please search who is the most successful investor of the stock market.”This led him to the teachings of Warren Buffett and Peter Lynch, shifting his mindset from short-term speculation to long-term value investing.III. The Evolution to Small and MicroCap InvestingStarting with large-cap names like Twitter and Visa, Pravia’s thinking evolved after reading Buffett’s comment about generating 50% returns in his early years by investing “peanuts.” This, along with Peter Lynch’s concept of “multibaggers,” drew him to the small and micro-cap space. Influences like Ian Cassel and the MicroCapClub deepened his interest.By 2021, he had moved his entire portfolio from large caps to small caps—a transition that faced early skepticism. When his portfolio underperformed the S&P 500 and suffered a 30% drawdown in 2022, critics questioned his strategy. But Pravia stayed the course, recognizing that:“The small cap world, the micro cap world is a whole different world… You can find companies that don’t care about macroeconomics, they don’t care about politics.”IV. Investment Philosophy and Due DiligencePravia’s investing approach blends Buffett and Lynch principles with a focus on small-cap realities:* Recession-Proof Businesses – Focuses on industries like food, services, maintenance, and health that he considers “anti-crisis.”* Healthy Balance Sheet – Prioritizes companies with net cash to mitigate risk.* Growth and Management Quality – Seeks businesses with strong growth potential and management teams that consistently deliver.* Peter Lynch Playbook – Finds businesses with proven models that can scale “10x, 20x, 30x,” citing his early success with Sprouts Farmers Market.* Constant Follow-Up – Actively tracks earnings calls and company updates to ensure management execution matches strategy.V. Case Study: Mama’s Creations and the Power of ConcentrationPravia’s process is exemplified by Mama’s Creations. Initially flagged in 2021 as recession-proof with net cash, he passed due to client concentration risk (60% of revenue). By 2024, diversification, new products, and a board refresh convinced him to invest at “a good price.” Now, he tracks acquisitions, organic growth, margins, and strategic initiatives.This experience reinforced the value of a concentrated portfolio. Inspired by other microcap investors, Pravia now runs seven core positions, with his largest holding 35% of his portfolio and the second-largest at 20%:“I’m very concentrated… fearless with my best ideas.”VI. The Transformative Power of AcquisitionsAn early acquisition win—100% in three months on a position that was just 2% of his portfolio—taught him the importance of sizing. This year, his conviction paid off when a 20% position in Marloi was acquired, producing significant gains:“I made my whole year in one situation… I don’t care about what the S&P 500 is doing… I only care about finding these kinds of situations.”VII. Bridging the Knowledge GapPravia works to counter the negative perception of the stock market, especially in Latin American communities:“People relate small to more risk. But what they don’t understand is that small for us are companies that are selling millions.”Through three weekly YouTube videos and monthly in-person classes in Panama, Pra

My guest on the show today is Asif Suria, founder of Inside Arbitrage and co-host of the Special Situations Report podcast. In this episode, Asif shares his evolution from traditional value investing to a diversified, event-driven strategy that includes merger arbitrage, spin-offs, buybacks, insider activity, and more.We dive into his “three-legged stool” process — combining event triggers, a 14-factor quant model, and deep qualitative research — and how it’s helped him navigate both opportunities and challenges in special situations. Asif also walks through real-world examples, highlighting lessons learned from his biggest wins and most humbling setbacks.For more information about Inside Arbitrage and the Special Situations Report Podcast, please visit: https://www.insidearbitrage.com/You can Follow Asif Suria on Twitter/X @AsifSuria: https://x.com/asifsuriaWatch on YouTube:Summary: 1. The Genesis of Event-Driven InvestingSuria's passion for investing began in 2001, a challenging period following the dot-com bubble burst. His early experiences with the dot-com bear market and the 2008–2009 Great Recession bear market (where “indexes decline[d] as much as 50% or more”) led him to seek “a less painful way of approaching investing.” This quest resulted in his pivot to event-driven strategies, starting with merger arbitrage.* Initial Philosophy: Began as a “value investor,” influenced by figures like Ben Graham, Phil Fisher, and Peter Lynch.* Shift to Event-Driven: The desire for a less painful investment approach, particularly after experiencing significant market downturns, led to exploring event-driven strategies.* Merger Arbitrage as a Starting Point: “The first event-driven strategy that I got interested in was merger arbitrage,” which involves profiting from the spread between a target company's current market price and its acquisition price.2. Identifying and Exploiting Market InefficienciesSuria emphasizes that while broad markets are “quite efficient,” “there are pockets of inefficiencies.” Event-driven strategies are designed to capitalize on these less efficient areas.* Pockets of Inefficiency: Examples include “GameStop, the meme stock mania,” and “micro caps,” where “there just isn't a lot of institutional money that can play in that arena.”* Event-Driven Strategies and Inefficiency: “Event-driven strategies potentially gave you an opportunity to participate in a less efficient market.” This inefficiency arises because events like spin-offs create situations where the market needs time to “fully understand what's happening here.”* Spin-offs as a Prime Example: Spin-offs create inefficiency due to a lack of historical data for the new entity and “natural inefficiency built in where if you own a company... you probably don't want the energy company and you're going to sell it off or forget all about it in your portfolio and that creates a certain amount of selling pressure that Greenblatt discussed in his book You Can Be a Stock Market Genius.”3. The “Toolbox” of Event-Driven StrategiesTo navigate varying market conditions and capitalize on different opportunities, Suria advocates for a diverse “toolbox” of event-driven strategies rather than relying on a single approach.* Multiple Strategies: “Certain strategies come in favor and then go out of favor... I wanted to have a toolbox with multiple strategies that I could deploy at different points in times.”* Core Strategies Tracked by Inside Arbitrage:* Merger Arbitrage (M&A): Company acquisitions. Faced challenges in recent years due to “very irrational antitrust.”* Spin-offs: A company separating a division into an independent entity. Currently a “great area that continue[s] to work.”* Management Changes: Appointments or sudden departures of key executives. “Pretty big area that for some reason retail investors and often professionals don't pay a lot of attention to.”* SPACs (Special Purpose Acquisition Companies): Can offer both long and short opportunities.* Buybacks: Companies repurchasing their own stock, signaling management's belief that “the stock is underpriced.”* Insider Transactions: While not traditionally “event-driven,” they are “overlaid against other events” (e.g., a “double dipper screen” when combined with buybacks).* Strategies Not Tracked: Bankruptcies are avoided due to their “complexity and the need for legal talent to be able to analyze that.”4. The Investment Process: A Three-Legged StoolSuria outlines a systematic three-step process for evaluating investment opportunities:* Event (Idea Generation): The initial trigger.* Quantitative Model: A “14 factor model” classifies every US company and assigns a score. A score of “70 or above” typically prompts a closer look, though this is not a rigid rule. The model helps “quickly run through ideas.”* Qualitative Work: In-depth analysis beyond the quantitative score. “There might be situations where the qualitative work might point to something interesting even though the quantitative

My guest on the show today is Jordan Zinberg, President & CEO of Bedford Park Capital. Jordan leads the Bedford Park Opportunities Fund, a highly concentrated, Canada-focused small and mid-cap equity strategy.In this episode, Jordan shares how his fund delivered a 58.6% return in 2024, net of fees and expenses, and was named Best One-Year Return at the Canadian Hedge Fund Awards with a 73% return over the 12 months ended June 30, 2024. We also discuss the firm’s annualized return of 18.4% since inception in 2018.Jordan walks us through the firm’s signature approach—identifying high-growth companies trading at reasonable valuations in a deeply inefficient market. We talk about how he builds conviction through intensive research, how he sizes positions (starting small and pyramiding up), and why bad average-down decisions are rare.We take a close look at his biggest winners—Propel Holdings, Source Energy Services, and Enterprise Group—and examine how early theses, growth acceleration, and multiple expansion fueled outsized returns in 2024. Jordan emphasizes building your edge, knowing what you own, and structuring your portfolio with conviction and concentration.For more information about Bedford Park Capital, please visit: https://bedfordparkcapital.com/You can follow Jordan Zinberg on Twitter/X @BedfordParkCap: https://x.com/BedfordParkCapWatch on YouTube:Summary:I. Jordan Zinberg's Background and Path to Bedford Park CapitalEarly Market Exposure:Zinberg’s first experience with markets came around ages 9–10, collecting and trading baseball cards. He remembers tracking “little arrows up and down the Beckett box,” which gave him his first sense of how markets work.Teenage Stock Gift:As a teenager, he received stock as a gift. This required him to “look in the paper and look up the stock price,” eventually encountering a stock split and dividend. Each event became a learning opportunity. He calls it “a great gift” that sparked hands-on interest in investing.Formal Education and Early Career:Zinberg studied business in university, always fascinated by markets. He has now worked in capital markets for over 20 years.Transition to Small Caps:After seven years at RBC working on large caps, he realized “that was where the money was in the market.” However, he saw how inefficient small-cap markets could be and how much opportunity they offered. That led to a shift in focus.Learning at a Small Firm:He joined a small fund focused on Canadian small- and mid-cap growth stocks, where he “really learned the craft.” During his nine years there, the fund grew from $13 million to $400 million.Launching Bedford Park Capital:In 2018, he founded Bedford Park Capital with the goal of applying everything he had learned—and improving upon it—at his own firm.II. Bedford Park Capital’s Investment Philosophy and StrategyExclusive Focus on Canada:Zinberg invests exclusively in Canadian companies, leveraging his “home court advantage.” Canada has over 4,000 public companies, many of which are underfollowed and inefficiently priced.“It’s still possible for a small firm like ours to go out and pick 15 or 20 good opportunities and get to know them really well—and be able to outperform.”Core Philosophy: Growth at a Reasonable Price (GARP) + Momentum Overlay* “The foundation of everything we do at Bedford Park is growth.”* Looks for companies growing revenue at 20%+ annually.* Prefers stocks trading at reasonable—not deep discount—valuations.Factors that lead to attractive mispricings:* Size: Too small for institutional investors.* Liquidity: Large funds can’t participate.* Lack of Coverage: Self-funding companies often have no sell-side analysts.“Sometimes you have bad companies with a lot of cheerleaders—and great companies hiding in the shadows.”Zinberg sees many high-growth Canadian stocks trading at single-digit P/E multiples, and adds a momentum overlay, preferring to add to winners, not average down on losers.Concentrated Portfolio:* Typically 15–25 names, with the top 10 positions making up ~80% of the fund.* Believes concentration is a key driver of alpha.“Nobody should care about my 30th best idea—including me.”Buying Strategy:* Starts with small positions (0.5%–1% weight), usually after meeting management.* Scales up based on performance:“I’ll generally be adding as the name’s moving higher.”* Rarely averages down. Instead, reevaluates the thesis after a bad quarter.Portfolio is divided into:* 10 core holdings ("starters")* 10 bench names ("farm team")Selling Strategy – 3 Triggers:* Deterioration in Growth: If a company falls below 20% growth for 2–3 quarters, it’s usually a sell.* Overvaluation Relative to Growth: Looks at growth-to-multiple ratio.* Better Use of Capital: Will reallocate capital if a more compelling opportunity arises.Special Situations Playbook:Though not resource-focused, he’ll occasionally buy energy/mining services companies (as industrial proxies) during hot resource markets.III. Strategy in Action: Propel H

My guest on the show today is Maj Soueidan, Founder, Editor, and Chief Portfolio Officer at MS MicroCaps and GeoInvesting. In this episode, Maj shares a comprehensive update on his investment philosophy, including the performance and evolution of the MSM Quality Index, a passive, factor-driven approach to finding high-quality microcap stocks with multibagger potential.We discuss how the MSM Index blends qualitative and quantitative analysis, what separates it from traditional model portfolios, and the role of occasional rebalancing. Maj also walks us through how the index achieved over 100% returns since inception and why it’s built for long-term staying power.We also dive into the differences between MS MicroCaps and GeoInvesting — one serving as a pipeline of ideas, the other as a deeper research platform — and how Maj thinks about conviction levels, diversification, and information edge. From spotting opportunities in “old boring companies” benefiting from data center and AI trends to reading between the lines in press releases and earnings transcripts, Maj offers a masterclass in info arbitrage and microcap idea generation.For more information about MS MicroCap Cliffnotes, please visit: https://mscliffnotes.substack.com/For more information about GeoInvesting, please visit: https://geoinvesting.com/Watch on YouTube:Summary:1. The MSM Quality Index: A Passive, Qualitative-Quantitative ApproachInception and Purpose: The MSM Quality Index was launched in February 2022 (with active Substack engagement starting February 2024) after a period of private testing. Its core goal is to identify and track stocks that meet specific quality factors while also triggering "multibagger" potential. As Soueidan explains: "It's not just enough to find quality companies. We want to find them when they're hitting multibagger factors."Methodology: The index uses a 10-point quality checklist, blending both qualitative and quantitative criteria. It incorporates multiple factors to isolate companies with high potential upside.Multibagger Focus: A defining feature of the index is its goal to find multibagger opportunities (100%+ returns). Since inception, it has produced 51 multibaggers out of 120 companies, including 9 acquisitions.Passive vs. Active: The index is passive in nature, unlike a model portfolio. It is not actively rebalanced every quarter, which allows for an honest evaluation of stock selection: "We're not actively rebalancing the index every quarter. This approach really tests stock-picking skills without interfering with outcomes."Rebalancing Strategy: While passive overall, Soueidan acknowledges occasional rebalancing as company narratives evolve. A rebalancing in April 2025 removed a few names. One removal, SCX (initially referenced as SVT), resulted in missing out on a significant acquisition pop from $13 to $40 per share.Performance:* 2022 Index: Over 100% return since inception, outperforming the Russell Microcap Index.* 2025 Rebalanced Index: Achieved 22% returns shortly after the April rebalance.Despite underperformance during downturns due to exposure to turnarounds, the index shows resilience and quick recovery.Staying Power Companies: Soueidan describes a core aim of the process: identifying "staying power" companies—those that can weather tough periods without vanishing.2. Differentiating MSM Quality Index & GeoInvestingMSM Quality Index (Pipeline): The index functions as a pipeline of qualified ideas. It includes companies close to being highest-conviction but not yet fully vetted.GeoInvesting (Deep Dive): GeoInvesting is the research platform where deeper dives occur. As Soueidan puts it: “One out of every seven stocks I add to the Cliffnote index comes to GIO at some point.”3. Investment Strategy & Conviction BucketsPortfolio Construction: Soueidan maintains conviction buckets (1–3) in his personal portfolio, weighting investments accordingly. The index, by contrast, is equally weighted.Subscriber Guidance: For subscribers, spotlight videos highlight one index name at a time. He also recently shared 43 liked stocks, with 18 designated as "high conviction" for a simulated portfolio test (70% allocation to high conviction names).Role of Luck: Soueidan embraces serendipity in investing. For example, TSI—a data center play—benefited unexpectedly from AI-driven growth: "I couldn't have predicted that."4. Info Arbitrage and Press Release AnalysisInformational Arbitrage: Soueidan champions deep reading of press releases and filings, especially in nano-caps where the market often ignores key information.Press Release Advantage: He believes most investors dismiss press releases due to assumed fluff. This creates an edge: “Most of them are not focusing in that area.”Golden Nuggets in Language: He cites United Guardian (UG) as an example where a simple dividend release hinted at major upcoming product growth—an insight most would miss.Information Hierarchy:* Press Releases: First-level insights. Valuable for w

To celebrate 10 years since the launch of the Planet MicroCap Podcast, I’m going back through our archives to share with you episodes of the podcast that either: garnered the most downloads/views in our history, stood out to me for the subject matter, the first appearances of regulars and/or that I think you’d really appreciate either re-visiting or for some of you, hearing/watching for the first time.This episode has been, and continues to be, the most watched and downloaded episode of the Planet MicroCap Podcast, a conversation that I cherish very much, and reflect about a lot.I had the honor of speaking with Professor and Value Investor, Sanjay Bakshi in 2017. I was first introduced to Sanjay at the MicroCapClub Leadership Summit 2016 in Chicago – thank you, Ian and Mike for the introduction. He was a speaker at their event, and after his speech I did some more research on him. I was blown away – he above all else, has this insatiable desire for knowledge, which hits home for me. This interview took about six months to book and I’m so grateful for this opportunity.Sanjay Bakshi, as it states on SanjayBakshi.net, is an Adjunct Professor at Management Development Institute, Gurgaon, in India, where he teaches a popular course Behavioral Finance and Business Valuation. He also is a Managing Partner at ValueQuest Capital LLP. On his websites, you can find his teachings and thoughts on investing, which are quite insightful.We covered a lot in this interview, which went into two recording sessions. In between the sessions, I did catch a cold, so I do apologize if I sound different. All I can say is thank you again Sanjay for taking the time to do the interview with me and I am incredibly grateful for the wisdom you imparted.For more information about Sanjay Bakshi, please visit:Blog: https://fundooprofessor.wordpress.com/Site: https://www.sanjaybakshi.net/Twitter: @Sanjay__BakshiWatch on YouTube:Summary:I. Evolution of Value Investing PhilosophyFrom Deep Value to QualitySanjay Bakshi’s investment philosophy has significantly evolved over the decades, beginning as a traditional Graham-style investor and transitioning to a focus on quality businesses, long-term compounding, and trust in exceptional managers.Early Graham & Dodd Influence (1990s)* Foundational Approach: Bakshi began by reading Warren Buffett’s letters, which led him to Benjamin Graham’s works such as Security Analysis.* Style: Focused on:* “Arithmetic” Valuation: Buying below liquidation value, net-net stocks, or low P/E multiples.* Special Situations: Emphasized arbitrage and M&A activity, particularly common in India during the 1990s.* Diversification: Heavy diversification to mitigate risk, with little concern for business or management quality.* Quote: “Graham used to say that I don't even need to know the name of the company—if I had the financial statements, I'll tell you if it is cheap or not.”Shift to Quality and Growth* Avoiding Value Traps: Bakshi learned that not all cheap stocks are good investments, especially if there are issues like bad governance or absent catalysts.* Quote: “Not everything that is cheap will become fairly valued… Maybe it's selling below cash for a reason.”* Expected Return Framework: He adopted a long-term return model that accounts for:* Entry multiple* Earnings growth rate* Exit multiple over a 5–10+ year horizon.* Concentrated Bets: A preference for high-quality businesses allowed for more concentrated portfolios, diverging from his earlier diversified approach.* “Low-Stress” Investing: He avoids:* Unethical industries (tobacco, alcohol, gambling, sugar)* High financial stress (leverage, poor governance, derivatives, shorting)* Daily price checking* Core Metric: “Returns per unit of stress,” not just per unit of risk.Investing in “Extraordinary Capitalists” (Sidecar Investing)* Inspired by Richard Zeckhauser: Bakshi uses the "sidecar" metaphor—riding alongside powerful owner-operators.* Trust and Integrity: Emphasis on management’s integrity and skill is central to his current strategy.* Quote: “It’s all about having faith in those people.”Three Buckets for Evaluating Management* Operating Skills: Measured by comparing peers and performance.* Capital Allocation Skills: Judgment on growth strategies, reinvestment vs. distributions, and M&A decisions.* Integrity: Fundamental. “You’re not going to get a good deal with a bad guy.”II. Key Investing Concepts and LearningsFinancial Independence & Staying Power* Advice: Build an income stream and savings before making long-term bets.* Quote: “You first have to invest and then think about your needs.”Business Quality vs. Investment Price* Core Idea: A great business can be a poor investment if overpriced. A poor business might be a great investment if sufficiently cheap—but Bakshi now prioritizes quality over cheapness.Critique of P/E Ratios* Flawed Metric: P/E fails to capture:* Growth potential* Exit multiples* True owner earnings (especially for R&D-heavy firms like