Each lens is a complete analytical framework with specialized models, data sources, and detection criteria designed to find specific types of market dislocations.
Companies with depressed margins versus their true potential. Temporary headwinds, cyclical troughs, or operational issues mask underlying earning power.
Earnings power is mean-reverting. Companies trading at cyclical lows or experiencing temporary margin compression often recover to historical norms. The market frequently overreacts to short-term challenges, creating opportunities for those who can identify sustainable competitive advantages.
Net interest margin compressed 150bps below historical average due to inverted yield curve. Cost structure remains unchanged with room for 20% efficiency improvement. Trading at 0.6x tangible book despite strong asset quality.
Companies with minimal institutional coverage. Information asymmetry creates opportunity for those willing to do primary research.
Wall Street ignores companies below certain market cap thresholds. Orphaned spinoffs, delisted equities, and micro-caps trade at structural discounts simply because no one is looking. Information edges are largest where coverage is thinnest.
Spun off from Fortune 500 parent 6 months ago. Zero analyst coverage, only 2% institutional ownership. Trading at 8x FCF despite 15% growth rate and sticky enterprise customer base. Parent shareholders indiscriminately sold.
Companies with poor capital allocation or governance structures destroying shareholder value. Change in control or governance unlocks potential.
Agency problems destroy value. Entrenched management, poor capital allocation, and misaligned incentives suppress valuations. Activist campaigns, proxy fights, or management changes can unlock significant value without operational improvements.
$400M cash on balance sheet (30% of market cap) earning near-zero returns. CEO compensation up 50% while stock down 40% over 3 years. Recent 13D filing by activist with history of successful campaigns.
Companies with suboptimal capital structures. Either over-leveraged at distressed prices or under-leveraged failing to optimize shareholder returns.
Capital structure matters. Over-leveraged companies trade at distressed multiples that normalize with deleveraging. Under-leveraged companies leave shareholder returns on the table. Refinancing, recapitalization, or LBO potential creates catalysts.
Net debt/EBITDA of 0.2x vs. industry average of 2.5x. Stable cash flows support significantly higher leverage. PE firms have acquired comparable companies at 8-10x EBITDA. Current trading at 5x EBITDA implies 60%+ upside.
Companies where corporate structure creates valuation discount. Conglomerate discounts, complex structures, or spinoff candidates where simplification unlocks value.
Complexity destroys value. Conglomerates trade at discounts to pure-play peers. Spinoffs, split-offs, and simplification strategies consistently create value by allowing each business to be valued on its own merits and attract specialized investors.
Three unrelated segments: industrial equipment (40% revenue), healthcare services (35%), and real estate (25%). SOTP analysis shows 35% discount to pure-play peers. Management under pressure from activists to simplify.
Our analytical framework extends beyond equities. These lenses are currently in development.
Options priced wrong versus fair value. IV extremes, term structure, skew anomalies.
In DevelopmentToken mispricings, derivative basis, cross-exchange arbitrage.
Research PhaseContango/backwardation extremes, supply-demand imbalances.
Research PhaseSpread anomalies, relative value, distressed opportunities.
Planned