Planet MicroCap Podcast | MicroCap Investing Strategies

A+ Capital Allocator, Inefficient, Fragmented Market with Valuation that Provides a Margin of Safety with Whit Huguley, Fund Manager at River Oaks Capital

Jan 21, 2025

Whit Huguley, Fund Manager at River Oaks Capital, shares his insights on microcap investing, blending experience from private equity with a focus on rigorous due diligence. He discusses the unique opportunities presented by the pandemic and the importance of capital allocation strategies like share buybacks. Whit emphasizes building strong relationships with company management and identifies qualities of successful micro-cap leaders. He also delves into current trends in community banking and the undervalued state of micro-cap firms.

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ANECDOTE

First In-Person Visit

Whit Huguley visited a small-cap company and discovered they hadn't received an in-person investor visit in years.
This highlighted an inefficiency in micro-cap markets and the value of in-person due diligence.

ANECDOTE

Meeting Dayton Judd

Whit Huguley realized Dayton Judd was an exceptional CEO during an in-person visit.
This reinforced the importance of due diligence and the potential of micro-cap markets.

INSIGHT

Management Team Importance

Management team quality is crucial, especially in micro-cap companies.
The smaller the company, the more the management team matters.

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My guest on the show today is Whit Huguley, Fund Manager at River Oaks Capital. I've known Whit for a few years now, first having met him at one of my own conferences in Vegas, and have gotten to know and appreciate Whit's investing style. He launched his Fund, River Oaks Capital, about 5 years ago now, and while he's in the middle of writing his annual letter, he graciously jumped on the pod to talk more about what he's learned from running a MicroCap fund thus far. And for full disclosure, we discussed a number of companies during today's podcast, I am not a shareholder in any of them. For more information about River Oaks Capital, please visit: https://www.riveroaks-capital.com/ You can Follow Whit Huguley on Twitter/X: https://x.com/Whit_Huguley

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