Hi Clayton, thanks for the great write up! I saw you mentioned that "many of the best-performing ideas were businesses that received little institutional attention and had minimal analyst coverage" and was wondering if, across your portfolio of neglected microcaps, you're finding that the mispricing tends to come purely from being underfollowed and overlooked by the market — rather than from any deeper structural or governance issues at those companies — since that distinction seems key to knowing which of these names could actually be ripe for an activist-style catalyst versus just staying cheap and ignored indefinitely.
Thank you for sharing your process.
Hi Clayton, thanks for the great write up! I saw you mentioned that "many of the best-performing ideas were businesses that received little institutional attention and had minimal analyst coverage" and was wondering if, across your portfolio of neglected microcaps, you're finding that the mispricing tends to come purely from being underfollowed and overlooked by the market — rather than from any deeper structural or governance issues at those companies — since that distinction seems key to knowing which of these names could actually be ripe for an activist-style catalyst versus just staying cheap and ignored indefinitely.
Great post! Enjoyed reading it.