The Acquirers Podcast Small and microcap investor Adam Wilk on coal $NRP, furniture $LEFUF and fire systems $APG| S07 E38
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Oct 30, 2025 Adam Wilk, CIO of Greystone Capital and author of the Pound the Rock Investing newsletter, dives deep into the world of small and micro-cap investing. He discusses the coal royalty model of Natural Resource Partners (NRP) and explores its turnaround strategy. Adam highlights key investment drivers for Leon's Furniture, including housing dynamics and margin expansion. Additionally, he shares insights from API Group's recurring revenue and growth potential in the fire safety sector. This engaging discussion touches on unique evaluation strategies and the opportunities within small-cap markets.
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Concentrate Into High-Conviction Positions
- Concentrate positions when you find misunderstood businesses in transition with cheap valuations and good management.
- Adam typically weights top five holdings at 65–70% of the portfolio to express high-conviction ideas.
Coal Royalty With Asymmetric Returns
- Natural Resource Partners (NRP) is a high free-cashflow coal royalty business with minimal capex and about 90% free cashflow margins.
- Adam argues its long reserve life, debt paydown and imminent cash returns create a durable, asymmetric investment despite industry stigma.
Minimize Price Risk With Trophy Assets
- Adam stresses minimizing commodity price risk by owning trophy assets with long reserve life indices rather than producers with operating leverage.
- NRP's reserve life of 30–40 years and guaranteed minimum royalties provide a strong downside floor in stress scenarios.
