The	  Case	  For	  MicroCaps	            By	  Ian	  Cassel	  
My	  Background	  •  Started	  inves8ng	  when	  I	  was	  a	  teenager.	  	  •  Worked	  for	  a	  broker/investment	  ad...
Investment	  Philosophy	  •  Invest	  where	  inefficiency	  is	  greatest	  •  Exploit	  informa8on	  advantages	  •  Perfo...
Small	  Cap	  Opportunity	  Set	  •    Small	  cap	  universe	  is	  8x	       	       the	  size	  of	  large	  caps	    ...
Small	  Cap	  Outperformance	  
Small	  Cap	  Outperformance	  
Market	  Correla8ons	  •  Small	  and	  Micro	  Cap	  Equi8es	  historically	  exhibit	  low	  correla8on	  to	  the	  S&P...
Find	  The	  Trend	  •  I	  try	  to	  find	  emerging	  consumer	  trends,	     financial	  trends,	  industry	  trends.	  ...
Find	  the	  Company…..	                    Products	  or	  Services	  are	  the	  best	  in	  peer	  group	  Highly	  inc...
Due	  Diligence	  Analyze	  public	                   If	  I	  can,	  try	     Conference	  filings	                       ...
MicroCap	  Isn’t	  Easy	  
What	  Is	  MicroCapClub?	  •  Launched	  July	  2011:	  Quality	  Members,	  Quality	     Stocks,	  Quality	  Content	   ...
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The Case For MicroCaps

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A short presentation on my back background, the investment premise for microcaps, and what MicroCapClub is about.

The MicroCapClub (mc2) is an exclusive micro cap forum focused on micro cap companies (sub $300m market cap). The MicroCapClub was created and founded by Ian Cassel as a way to share ideas and to learn from other seasoned like-minded micro cap investors. Our goal at MicroCapClub.com is quality membership and quality stock ideas. If you are an experienced micro cap investor, feel free to Apply today.

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The Case For MicroCaps

  1. 1. The  Case  For  MicroCaps   By  Ian  Cassel  
  2. 2. My  Background  •  Started  inves8ng  when  I  was  a  teenager.    •  Worked  for  a  broker/investment  advisor  full  8me  while  I   aCended  Millersville  University  for  Economics.  Graduated   2003.    •  Villanova  University  while  working  on  my  MBA,  Graduated   2005.    •  Founded  Ian  Cassel  LLC:  Advised  several  microcap  companies   (2005  –  2008).    •  Full  8me  investor  (2009  –  Present)  •  Founded  MicroCapClub.com  (2011  –  Present)  
  3. 3. Investment  Philosophy  •  Invest  where  inefficiency  is  greatest  •  Exploit  informa8on  advantages  •  Perform  original  fundamental  research  •  Invest  in  growth  with  definable  catalysts  •  Keep  management  teams  on  a  short  leash    
  4. 4. Small  Cap  Opportunity  Set  •  Small  cap  universe  is  8x     the  size  of  large  caps   Large   Investors  are   Cap   (>$5B)   over-­‐exposed  to   600  stocks   large  caps         Mid  Cap     Market  efCiciency   is  greatest   ($500M  -­‐  $5B)   1800  stocks     Small  Cap   I  aim  to  exploit   the  many    (<$500M)   inef=iciencies  of   this  under-­‐ 5000+  stocks   exposed  segment  
  5. 5. Small  Cap  Outperformance  
  6. 6. Small  Cap  Outperformance  
  7. 7. Market  Correla8ons  •  Small  and  Micro  Cap  Equi8es  historically  exhibit  low  correla8on  to  the  S&P  500  •  Correla8ons  are  lower  in  downmarket  periods,  implying  capital  preserva8on   opportuni8es  •  Adding  Small  and  Micro  Cap  Equity  exposure  may  offer  por_olio  diversifica8on   benefits  to  investor  por_olios    
  8. 8. Find  The  Trend  •  I  try  to  find  emerging  consumer  trends,   financial  trends,  industry  trends.    •  Once  I  find  a  trend  I’m  confident  in,  I   find  the  microcap  companies  that  are   the  benefactors  of  that  trend.    
  9. 9. Find  the  Company…..   Products  or  Services  are  the  best  in  peer  group  Highly  incentivized  management  teams  with  proper  alignment  of  interests   Low  institutional  ownership  (undiscovered  by  larger  investors)   Self-­‐Cinancing  growth  and  clean  capital  structure  
  10. 10. Due  Diligence  Analyze  public   If  I  can,  try   Conference  filings   the  product   Call  with   or  service   Management  Try  to  speak  to  one  or  more   Company  Visit  customers  (Channel  Checks)  
  11. 11. MicroCap  Isn’t  Easy  
  12. 12. What  Is  MicroCapClub?  •  Launched  July  2011:  Quality  Members,  Quality   Stocks,  Quality  Content   –  Members  Forum:  Exclusive  club  for  experienced   microcap  investors  to  share  and  discuss  ideas.     •  Currently  over  140  members  discussing  about  80+   microcap  companies.   –  Public  Blog:  Unmet  need  in  the  market  place  to   educate  investors  about  the  MicroCap  space.   •  Educa8onal  ar8cles  on  microcaps   •  Interviews  with  opinion  leaders    

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