The Small Cap Value Strategy seeks long term growth of capital by investing in what we believe are the most mispriced areas of the stock market.
The strategy generally holds 15 – 25 companies, with an average position size of 4 – 6%. We target smaller companies (market caps) with minimal investment analyst coverage, little to no ETF representation, and high insider ownership.
Over 50% of our holdings are micro caps (<$300 million market cap), which is an area of persistent undervaluation as shown below.
When considering companies, we actively screen for change, controversy, and anomalies, with an emphasis on understandable businesses, solid financial strength, and aligned interests with management.