Planet MicroCap Podcast | MicroCap Investing Strategies

Compounders, Value Today, and Value Tomorrow with Balkar Sivia, Founder & Portfolio Manager at White Falcon Capital Management

Sep 26, 2025

Balkar Sivia, Founder and Portfolio Manager at White Falcon Capital, transitioned from engineering to investing with an unconstrained philosophy. He discusses his portfolio's three engines: Compounders, Value Today, and Value Tomorrow, ensuring constant performance. Balkar shares insights on identifying quality businesses navigating challenges, managing value traps, and the impact of narrative shifts on stock valuation. He also explores how AI influences investment strategies and emphasizes the importance of solid management incentives in a concentrated portfolio.

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INSIGHT

Unconstrained Opportunistic Philosophy

Balkar rejects style-box investing and runs an unconstrained, opportunistic strategy focused on quality and three return engines.
He aims to always have at least one portfolio "engine" working while rotating capital between compounders, value today, and value tomorrow.

ADVICE

Use Circle Of Competence To Filter Ideas

Limit your investable universe by your circle of competence and strict filters for quality and undervaluation.
Run a concentrated, high-conviction portfolio to force discipline and only hold ideas you deeply understand.

INSIGHT

Prioritize Management And Culture

Management quality and company culture can matter as much or more than business metrics when assessing quality.
Ask whether management can realistically execute the path from current state to where you expect to realize returns.

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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 on Twitter/X @WhiteFalconCap: https://x.com/whitefalconcap

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