Matt Feshbach Turns To Three Microcaps

This month's Institutional Investor magazine has an interesting article on Matt Feshbach. Now head of MLF Investments, Feshbach is known for co-founding Feshbach Brothers, an aggressive trading firm that was synonymous with short-selling in the 1980s.
Feshbach is now playing the long side, mostly in microcaps. According to the article, he manages about $200 million.

MLF is only currently invested in three companies -- microcaps Delia's (DLIA) and Sirva (SIR), and smallcap La-Z-Boy (LZB). His fund employs a strategy he calls "ownership investing," taking a 5% to 20% position in each company, and working with management in a gentle sort of activism.

Over the past five years, MLF has posted average annual returns of 34.5%. This year might not be so great, looking at the charts of his three identified holdings:

DISCLOSURE: I have no position in any of the stocks mentioned. Not a recommendation to buy or sell any security. For informational and educational purposes only.

Comments

[MarketRiders]

Hey Microcap Speculator -- get your facts correct. The article said MLF owns 3 stocks besides Delias and one of them is AMIE which is its 4th position. AMIE was purchased around $10 and closed last year in the $40's. Its down this year as well, but Feshbach is the closest you'll find to a Buffett-style investor who walks the walk. Neither he nor his investors are watching the tape very day and they are pleased to own great businesses that will compound returns at greater than the market. Feshbach owned AMIE for years before it ran and I'd expect him to own it for many years to come.

[hans8008-seekingalpha]

I've known Matt for years and have been following his present activist philosophy almost from the beginning. What probably made him and his brothers so much money when they were shorting in the 80s was his ability to forensically dissect a company into understandable components which can be assigned their relative values. He is amazing at this, quite frankly. He also has an intense focus I've rarely seen in others. So I know if there is anyone who can succeed at this kind of investing strategy, it is Matt Feshbach.

Plus, you don't have to spend much time with Matt to see why so many people like "go long" with him too.