I wanted to let the readers know some good news and bad news. The bad news is I am currently at a full time position so I will not be able to post as much. The good news is two fold.
First, I have found a wonderful guest contributor Sandesh Trivedi who will be contributing to the site on a regular basis. He is very talented and can write on a range of topics related to value investing and finance. You can feel free to contact him at [email protected]
Second, I will be doing research at a small Private Equity firm. They are officially private equity but they really invest in publicly held companies. The firm takes a value oriented approach. My boss graduated from Columbia’s Value MBA program and uses this approach in evaluating stocks. The firm sticks to nano-cap companies where there is illiquidty which often results in a big mispricing between current price and intrinsic value. The firms they invest in have no analyst coverage. The firm often takes a large stake in the company and often has representatives on the board. The firm is very patient; they research hundreds of companies a year and usually only conduct one or two transactions. The firm focuses on tele-com companies and other technology companies because they have a lot of experience in this area. however, they do not focus exclusively on this area.
The reason this is good news is because while I will be writing less, I hope to gain a valuable learning experience. The nano-cap market is an opportunity for an investor to make a lot of money due to huge mispricings. There are approximately 5,000 publicly traded companies that have a market cap of less than 250 million. These companies have little if any analyst coverage.
I hope that the quality of my articles improve. I will be helping with the initial screening process of finding stocks that might be undervalued and writing up a short piece on them, before sending them for further analysis.
The track record of the firm is very, very good. For disclosure reasons I doubt I can mention specific numbers. This is another unfortunate matter about the company. Any internal data is confidential and I will not be able to disclose. In addition, the firm often has board representation in public companies and knows insider information which I too cannot disclose. However, whenever there is an interesting stock I can disclose I will do so.
Keep visiting the site because it will be updated several times a week, if not daily between Sandesh and I. In addition, I conducted an interview with Value hedge fund manager Mohnish Pabrai which I expect to be posting early next week.
Again feel free to email me about anything using the form below.
[contact-form 1 “Contact form 1”]