Planet MicroCap Podcast | MicroCap Investing Strategies

Asif Suria, Founder of Inside Arbitrage and co-host of the Special Situations Report, shares his journey from value investing to mastering event-driven strategies like merger arbitrage and spin-offs. He breaks down his unique three-legged process, combining event triggers, a quantitative model, and qualitative research. Asif discusses real-world examples, including successes and lessons learned from failures like Capri and Spirit. He also highlights current M&A trends and the importance of insider buying, particularly in microcaps, offering insights for savvy investors.

Jordan Zinberg, President & CEO of Bedford Park Capital, specializes in concentrated small and mid-cap investing in Canada. He shares insights on achieving a remarkable 58.6% return in 2024 and discusses his strategy of identifying high-growth companies in inefficient markets. Jordan reveals his disciplined approach to portfolio construction and position sizing, emphasizing the importance of building conviction in investments. He highlights his top performers and offers advice for new investors to focus on finding their edge and managing risk effectively.

Maj Soueidan, founder and chief portfolio officer at MS MicroCaps and GeoInvesting, dives into the evolving investment landscape. He reveals how ‘old boring companies’ are capitalizing on AI and data trends, showcasing their unexpected value. Maj breaks down the MSM Quality Index, which boasts over 100% returns, emphasizing its blend of qualitative and quantitative analysis. He also highlights the importance of information arbitrage, illustrating how subtle details from press releases can unlock investment opportunities. Tune in for insights on sectors like defense and supply chains!

Ryan Telford, Head of Evidence-Based Research at MicroCapClub, dives into the MC GUTS MicroCap Index, revealing its impressive 16.5% year-to-date gain. He discusses how Canada and Europe are outperforming the U.S., analyzing factors like sector rotation and liquidity. Telford unveils his 'GUTS' framework—Growth, Undervalued, Timing, Sentiment—designed to uncover hidden opportunities. He also challenges traditional views on dividend payers and the effectiveness of the 52-week low strategy, providing fresh insights for microcap investors.

Anthony Perala and James Hannack, research analysts at Punch & Associates, share insights from their recent due diligence trip across Western Canada. They discuss the immense value of in-person research in microcap investing, noting how personal interactions reveal company culture and operational truths that data can't convey. Highlights include experiences from an optical company visit in Vancouver, the importance of cultivating relationships with management teams, and amusing anecdotes tying hockey to investment networking.

Mathieu Martin, Portfolio Manager at Rivemont MicroCap Fund, dives into the evolving landscape of Canadian cannabis, spotlighting the emergence of profitable operators amidst a challenging market. He discusses why traditional investors are missing opportunities by overlooking cash flow over flashy revenue. Mathieu highlights standout companies like High Tide and the significance of regulatory changes. With a fresh perspective, he explores international markets and brand differentiation, urging listeners to reassess the cannabis sector.

Discover unique investment strategies with insights from a former Merrill Lynch trader. Jerome shares his barbell approach, balancing stable earnings with riskier bets. Dive into the world of music royalties, where steady cash flow fuels bold investments. Explore the hidden gems within microcaps and learn how personal experiences shape investment choices. Jerome emphasizes due diligence and spotting transformative companies, while discussing the challenges and emotions of navigating market volatility.

Ben Brostoff, a software engineer at Klaviyo and the mind behind the Stock Talk newsletter, shares his unique perspective on microcap investing. He reveals his strategy of targeting 8–10% returns while mitigating risks. Ben discusses how AI alters the evaluation of software companies and highlights the importance of thorough due diligence. His journey from investment banking to tech informs his insights on competitive advantages in the SaaS space. Listeners will appreciate his actionable frameworks and essential tips for navigating the complexities of investing in this dynamic sector.

My guest on the show today is Cameron, Founder of Commonsense Investing and author of the Substack microcapstocks.substack.com. Cameron is a microcap investor focused on education, community, and a disciplined research process — bringing a common-sense approach to navigating this often volatile corner of the market. In our conversation, Cameron shares how his investing journey evolved from chasing high-flyers and exposing bad actors to building a thoughtful framework for identifying quality microcap companies. He discusses the importance of doing your own research, filtering stocks through a rigorous process, and why flexibility is a powerful edge for retail investors. We also talk about his personal investing experiences, as well as key red flags to look out for — from share dilution to questionable management behavior. 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 Cameron and Common Sense Investing, please visit: https://commonsenseinvesting.ca/ Planet MicroCap Podcast is on YouTube! All archived episodes and each new episode will be posted on the Planet MicroCap YouTube channel. I’ve provided the link in the description if you’d like to subscribe. You’ll also get the chance to watch all our Video Interviews with management teams, educational panels from the conference, as well as expert commentary from some familiar guests on the podcast. Subscribe here: http://bit.ly/1Q5Yfym Click here to rate and review the Planet MicroCap Podcast The Planet MicroCap Podcast is brought to you by SNN Incorporated, The Official MicroCap News Source, and the Planet MicroCap Review Magazine, the leading magazine in the MicroCap market. You can Follow the Planet MicroCap Podcast on Twitter @BobbyKKraft

Thomas Richard, CFA and Portfolio Manager at Philippe Hottinguer Gestion, shares insights from his deep dive into Europe's microcap market. He discusses the underappreciated opportunities in Southern Europe, especially Spain, Italy, and Greece. Thomas emphasizes the value of bottom-up research and direct management interactions while navigating governance risks and delisting threats. He also highlights how language barriers can be tackled with AI tools, making a case for the untapped potential in European microcaps for international investors.