Strategy
High-conviction U.S. small and
microcap value investing.
We deliberately focus on the smaller end of the small cap U.S. equity markets,
for which the bottom half of the Russell 2000 is a rough proxy.
We believe this small and microcap universe is fundamentally inefficient.
Businesses here are generally less diversified, leading to more volatile earnings patterns. The stocks of these companies are less liquid and underfollowed.
This can lead to dislocations between stock prices and the value of the underlying businesses, creating opportunities for investors with the specialist expertise to identify and capitalize on these dislocations.
We apply a “4Cs” approach to identifying investment opportunities with asymmetric risk/reward profiles.
We look for businesses which are Conservatively financed, Cheap and Competitively stable, and for which there are tangible Catalysts capable of credibly realizing upside potential.