$APG - API Group has delivered 5x returns over 5 years with significant runway for continued growth. Trading at attractive valuation with strong organic and acquisition-driven growth potential, potentially a 'never sell' business.
$NRP - Natural Resource Partners trading at 1.3B market cap with normalized cash flow of $200-250M. Operating in a hated industry (coal) but with strong fundamentals, debt paydown timeline, and attractive expected returns.
$LEONS - Leon's Furniture trading at $1.8B market value with normalized EBITDA of ~$300M and free cash flow of $200-225M. Strong competitive position, valuable real estate holdings, and recent management changes position it well versus comparables.
$COAL - Coal sector remains essential despite narratives about zero carbon emissions by 2050. Record coal usage continues globally and metallurgical coal is irreplaceable in steelmaking, making the sector's durability underappreciated.
$SMALLCAP - Small and micro-cap stocks present attractive valuations with interesting situations appearing almost weekly. The opportunity set is very good for this strategy despite broader market conditions.
Bearish:
$IWM - Russell 2000 index is not an optimal vehicle for small-cap exposure due to its composition of mostly low-quality, unprofitable businesses. Better opportunities exist in selective individual small-cap names.