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Josiah has over 8 years of experience in corporate finance, financial consulting and accounting. He specializes in high-yield fixed income and exchange traded debt securities. Currently, he manages his personal fixed income portfolio and retirement portfolio.
Josiah holds a Masters of Science in Finance degree from Loyola University Maryland and is currently completing a Masters of Accountancy degree from The George Washington University.
Jonathan is a student at Queen's University. He enjoys looking for under-covered stocks that present wide margins of safety. Major influences include Seth Klarman, Joel Greenblatt, and Bruce Greenwald.
I focus on the microcap space (market cap below $250 million) because it is one of the most inefficient and "alpha rich" areas of the global equity market, which provides the greatest opportunity to generate alpha through fundamental research.
I use a bottom up, investment decision making process. The ideal investment has an asymmetric risk/return profile with a limited downside (e.g. high net cash balance, strong cash flow) and significant upside (e.g. asset value extraction, overlooked business model transition).
Microcaps are particularly attractive to the following groups:
Activist investors. A small absolute investment (on a dollar basis) can be leveraged into a relatively large position (as a percentage of shares outstanding), which provides a greater ability to demand change.
Private equity firms. The persistent microcap discount can be “arbed away” via an LBO with the new owners accruing all of the gains for themselves. The small absolute size of many microcaps on an EV basis significantly expands the number of firms able to pursue this strategy.
This inefficiency exists for several reasons.
A lack of analyst coverage due to lower trading volume (less soft dollars from HF/MF), the global settlement that permanently severed the link between research/banking and the rise in electronic trading/decimalization. Moreover, none of these trends are likely to reverse for the foreseeable future (if ever).
A lack of institutional products given the natural capacity constraint for new/existing managers.
An inability to effectively implement a passive approach (e.g. ETFs, index funds) due to the lower liquidity and wider bid/ask spread. However, each of these obstacles can be overcome by using a combination of electronic trading tools (e.g. algos) and patience in building a positive size.
Inaccurate and persistent misconceptions about microcaps (e.g. they are riskier than larger cap stocks).
I currently trade for my personal account but would like to move into the investment management side of the industry.
Full-time investor. Formerly buy-side credit analyst (2yrs) covering Japanese + Asian companies. Before that, I was a cross asset derivatives salesperson at a large bulge-bracket firm, based in Tokyo (4yrs). I use Seeking Alpha to clarify and synthesize my investment thought process and to elicit feedback on my theses; additionally I like to connect with other investors and swap ideas.
You can read my finance-related blog at rapercapital.com (less organized than Seeking Alpha writeups, more my random musings on various finance-related topics).
Going forward I will try to tweet my investment-related thoughts/updates to articles/etc. You can follow me on Twitter, my handle is @puppyeh1
Always looking for new ideas across the board. Happy to exchange ideas/share thoughts/swap notes, feel free to private message me. I currently live in Singapore.
Ritchie Bros (bought in $20-25 range, now at $31; new CEO in 2015, first company i ever bought back in 2015, still one of my favorite businesses that I've ever seen)
KMG Chemical (bought in $20-25 range, now at $39; proud of this b/c it's an under the radar stock with a huge moat, and i found it myself - didn't read in an article or 13f. also gave me exposure to semiconductor industry, without having to take a directed bet on which semiconductor technologies will work and which won't - their job is to supply 100% pure solvents to wafer manufacturers to clean wafers prior to them becoming chips. they use basic solvents - the key here is that when i say 100% pure, i really mean it - i think they have a class 10 cleanroom, which has more stringent requirements than the clean rooms that they manufacture pacemakers in. just to give you an idea. niche market that bigger players cant enter[actually, bigger players divested these businesses to KMG), low cost, critical to performance of end product; Intel is a big customer, and KMG, as their chip cleaner, has access to serious trade secrets. And Intel isn't going to give those trade secrets to some random chemical company in China. Very well positioned in America, EU (mkt share of >50% in each, i believe), and expanding in Asia (to provide services to their american customers who open plants over there)
OmegaFlex (bought in $32 range, now at $50. Product liability litigation overhang. Basically figured out that the court was going to clear them, which also meant legal expenses would come down significantly, and boost income by a very material amount. And then, grows as fast as new home build mkt, and has something like 90% gross margins, with fixed operating expenditures. So, legal expenses going away, exposed to good industry, high incremental margins and operating leverage; will also massively benefit from tax cuts)
KLX Inc (bought in $32 range, now at $50; sold this at $50 or so. Aerospace biz worth maybe $42 per share, and was happy to get $8 per share from their energy services biz, since i really don't know how much that's worth).
BofI (bought in $17-18 range, now at $30; short seller attack. Went and read court documents, and all accusations were complete BS. Sold at $29, because determined i wasn't comfortable owning a bank with huge geographic concentration without knowing alot more about that geography (California housing, in this case))
Winnebago (bought in $20 range, now at $33; new CEO. Announced what he was going to do, all made sense; stock was trading at 10x p/e, now trading at 15x p/e or so. made a major acquisition)
Sunedision Semiconductor (bought in $4 range, acquired at $12; these guys make the wafers that KMG sells the cleaning chemicals to)
SPX Corp (bought at $9, now at $25; spinoff, had issues with cost overruns in Africa. These issues were de-risked in 2nd half of 2015, but nobody noticed. Picked the stock up at $9, and it shot to $18 on the next earnings call once it became clear that projects were derisked and mgmt gave guidance for next year)
Advansix (bought at $14, now at $30; lowest cost producer of it's commodity, potentially in the entire world. competitors convert coal to gas, and then make the chemical (e.g., in China). Advansix has direct access to Marcellus shale, and is fully backward integrated - I saw their cost curve graph, and I've never seen one of those where one firm is so much cheaper than everyone else, until i found advansix. and global mkt, so it matters that the marginal producers in China use coal).
Lee Enterprises (bought at $2, sold at $3) - amazingly run newspaper, high margins, paying down debt. Margins stable, sales declining slowly, so unlevered ebitda and FCF declining slowly, too. But, levered FCF is stable/increasing, because theyre paying off debt (and lowering interest payments) faster than unlevered FCF decreases)
Civeo Corp (bought at $1.1, sold at $3.3 or so) - not great explanation. just thought $1 was overkill to the downside, and i was right.
Companies I don't own, but which you might want to:
AME (high qual industrial compounder, had been buying in $40-45 range; now at just over $50)
Credit Acceptance (banking/insurance is a people biz, which is why Buffet likes them - because he's good at analyzing people. People are your asset. Same goes here, subprime auto lender. had been buying in $170 range, now at $200. They compound at 20% per year, and always trade at 10x p/e - part of the way they can compound like that is they can always buy back their own stock at a 10% yield. nice little dynamic)
Wabco Holdings (very unique position in mkt; capitalize on vehicle and trucking automation and environmental compliance; just beware of Europe!!)
CSW Industrials (post spin off, very special situation. 5 very high margin businesses owned by a BDC; while in BDC, they had to exist as separate companies. CSWI has now been spun out of the BDC, which means that they have redundancies across 5 different companies that they can consolidate. Look at their gross margin, then their operating margin - 1) GM is insanely high, and 2) OpEx very inflated. EV/EBITDA looks fair, but on a depressed ebitda - post consolidation synergies, this multiple comes down alot. Exposure to plumbing, comm/res construction, rail cars, and valve lubricants for pipelines)
RFP (pulp, wood products, and tissue should each generate $100m in ebitda per year. newsprint/specialty papers being run for cash. Catalysts on horizon = lower pension contributions and ramp up of new tissue business unit)
Och Ziff Mgmt (hedge funds generally having trouble, bribery scandal in Africa, AUM coming down. But, look at track record - they are a real "hedge" fund in that they actually "hedge" their positions - crushed it in 08/09, and money poured in after. i think this is a good example of an "anti-fragile company")
Currently owned companies
I approach investing as a social theorist and a cultural historian. As a result, I am a contrarian. Studying the history of financialization, I have to agree with value investors like Seth Klarman, George Soros, and John Quiggin that markets are ultimately inefficient. However, I am not an orthodox value-investor. I believe in diversified strategy so as to insure maximum gains while maintaining a "margin of safety." Understanding that markets will operate inefficiently, I sometimes find "playing the greater fool's game" will yield nice short term gains. I have been investing for five years and have had proven results. I offer unique insight on fundamentals that most analysts do not consider.
Cornelius Vanderbilt has done more than any other man to shape our idea of investing. He was the ultimate contrarian. As an investor he looked for both value and risk. His approach to markets is complex and contradictory but can be learned from.
B.A., NYU Gallatin School
M.A. CUNY Gradatuate Center [in progress]
I started a twitter. https://twitter.com/matt_finston
Wall Street Breakfast, Seeking Alpha's flagship daily business news summary, is a one-page summary that gives you a rapid overview of the day's key financial news. It's designed for easy readability on the site or by email (including on mobile devices), and is published before 7:00 AM ET every market day.
Wall Street Breakfast readership of over 900,000 includes many from the investment-banking and fund-management industries.
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I am a former analyst, now full-time investor. I may take long or short positions in companies that I write about, although my focus is on uncovering what I believe to be questionable companies and transactions. I will always provide disclosure whenever I publish a blog post.
I will never attempt to provide false or misleading information. All facts that I present on this site are true to the best of my knowledge. All opinions presented are my own and accurately reflect my actual opinion on the issues that I write about.
A veteran of the pharma industry. Specializing in the analysis of small pharma companies with a focus on the pipeline and opportunities for licensing or major deals with large pharma. Financial analysis including burn rate, venture capital funding, and cash flow.
Josh Young is the Chief Investment Officer of Bison Interests, an investment firm focused on publicly traded oil and gas companies. And he is Chairman of the Board of Iron Bridge Resources. He is a value investor primarily focused on energy stocks, natural resources stocks, and companies trading at low multiples to earnings, cash flow, or book value. He has presented at numerous investment conferences, including Platts, LD Micro, Oil & Gas Money, Louisiana Energy Conference, and the Global Resources Investment Conference and has been featured in Barrons, Bloomberg, and Oil & Gas Investor Magazine. He is a graduate with honors from the University of Chicago in economics.
I am the President and Portfolio Manager at Motiwala Capital LLC, a Registered Investment Advisor in the state of Texas. I employ a value oriented investment philosophy. I look for quality companies that have strong balance sheets, produce stable free cashflow and generate above average returns on capital. We purchase at attractive discounts to their intrinsic value.
I started managing separate accounts in 2011. Currently managed $5.4million in assets. Please find presentations, interviews and client letters at www.motiwalacapital.com
Our small-cap hedge fund strategy beat the market by 44 percentage points since its inception 18 months ago. Visit our website to learn how you can do the same. Insider Monkey is a finance website that provides free hedge fund and insider trading data. We believe ordinary investors can beat the market by imitating insiders and best hedge fund managers. They have access to better information and experts than ordinary investors do. Take advantage of the SEC filings where hedge funds and insiders disclose their stock transactions.
Here is our team:
Ms. Krishnamsetty is the Editor of Insider Monkey. Prior to creating Insider Monkey with Dr. Dogan, Ms. Krishnamsetty was Associate Producer at Bloomberg Television. Prior to that, Ms. Krishnamsetty was on the afternoon news team at CNBC. Additionally, Ms. Krishnamsetty reported for NPR and worked as a risk management consultant at Marsh & McLennan. Ms. Krishnamsetty has a M.S. in Journalism from Columbia University’s Graduate School of Journalism.
Insider Monkey’s hybrid evaluation system ...More was created in 2003 by Dr. Ian Dogan. Dr. Dogan has a Ph.D. in financial economics with a specialization in insider trading. Dr. Dogan has provided consulting services to institutional investors and hedge funds, and managed a $200+ million fund using a strategy he developed utilizing insider transactions. Dr. Dogan recently authored the insider trading chapter of soon to be published “The Handbook of Investment Anomalies” by Zacks Investment Research. Insider Monkey will serve the outcome of the methodologies developed by Dr. Dogan to ordinary investors who don’t have access to academic quality research and tools to shape their investments.
For your inquiries please contact us at firstname.lastname@example.org
Individual investor self-taught and inspired through the works of Benjamin Graham, Warren Buffett, Charlie Munger, Seth Klarman, David Einhorn and the likes. I look for deeply undervalued, ignored or out-of-favor investment opportunities in various industries.
Great ideas are the lifeblood of the investment business and the exclusive focus of The Manual of Ideas. Authored by investment and finance professionals who have grown up on the teachings of Ben Graham, Warren Buffett and Joel Greenblatt, and have studied under or worked with luminaries such as Yale Chief Investment Officer David Swensen and Economics Nobel Laureate James Tobin, MOI delivers timely, differentiated investment ideas. In a market flooded with data and opinion, we deliver clarity.
Tools and Business Reviews to help you find only GREAT stocks: those with rising, recurring revenues and durable competitive advantages. Learn more about our low cost, high value membership today!
John Huber is the portfolio manager of Saber Capital Management, LLC, an investment firm that manages separate accounts for clients. Saber employs a value investing strategy with a primary goal of patiently compounding capital for the long-term.
John also writes about investing at the blog www.basehitinvesting.com, and can be reached at email@example.com.
I have retired from a 35 years career in the semiconductor industry. I now have the time to do the deep research necessary for successful investing.
I freely provide investment information for friends and family.
I am a member of MENSA, which means precisely nothing except I wake up in the middle of the night doing pointless math problems in my head:)
I am a retired wall street attorney. I started out specializing exclusively in securities law. As I developed my practice, it morphed into a corporate finance practice specializing in mergers and acquisitions, with the securities law aspects being secondary.
I'm not much for diversification. I tend to put a substantial amount in a few baskets and then watch those baskets very, very carefully.
Analyst and Fund Manager with almost 20 years investment experience. Coverage includes a variety of industries, with a focus on technology.
Particularly focused on value stocks, poorly understood or under-followed situations, and contrarian perspectives.
Primarily invest in special situations with value that is poorly understood or not fully appreciated, or where we believe there is a highly asymetric risk/reward profile. Also look for long/short ideas in mid/larger cap names where we believe we have a variant view, and the market is dramatically mispricing value.
Follow me on Twitter @valinsights
Charles (Chuck) C. Carnevale is the creator of F.A.S.T. Graphs™. Chuck is also co-founder of an investment management firm. He has been working in the securities industry since 1970: he has been a partner with a private NYSE member firm, the President of a NASD firm, Vice President and Regional Marketing Director for a major AMEX listed company, and an Associate Vice President and Investment Consulting Services Coordinator for a major NYSE member firm. Prior to forming his own investment firm, he was a partner in a 30-year-old established registered investment advisory in Tampa, Florida. Chuck holds a Bachelor of Science in Economics and Finance from the University of Tampa. Chuck is a sought-after public speaker who is very passionate about spreading the critical message of prudence in money management. Chuck is a Veteran of the Vietnam War and was awarded both the Bronze Star and the Vietnam Honor Medal.
Jake Huneycutt is a former L/S Portfolio Manager, who developed one of the best long-term track records of outperformance in the US by investing in beaten-down, undervalued stocks. He is currently the Chief Content Creator for the data oriented website The New Madisonian.
He holds an MBA in Finance from Emory University, a Master of Accounting from the University of North Carolina at Chapel Hill, and a B.A. in History from East Tennessee State University. Hobbies include hiking, trail running, karaoke, board games, classic films, and tournament poker. He is originally from Johnson City, TN and currently resides in Atlanta, GA.
I am a dividend investor and look for undervalued investments in the stock market. I identify misunderstood and undervalued equity investments and hold those securities until their price approximates my estimate of intrinsic value. I am a long-term investor only.
I am building a $100,000 high-yield income portfolio. I am running this portfolio as an experiment to see if long-term sustainable income can be generated from a diversified pool of high-risk, high-yield securities. I am willing to accept high risk in order to meet my performance goals.