In this episode, we sit down with Michael Melby, the founder and portfolio manager of Gate City Capital Management, a firm that specializes in microcap value investing. The discussion kicks off with some exciting news about an upcoming investor event, along with a reminder that the conversation isn't investment advice. We then explore Melby's background and his unique investment philosophy, which prioritizes concentrated portfolios of undervalued companies with tangible assets. He emphasizes the importance of long-term commitments and hands-on management due diligence.
Melby shares how his firm has grown from a modest beginning to managing over $200 million in assets. He walks us through his investment process, detailing his screening methods, valuation techniques like discounted cash flow and floor value analysis, and portfolio management strategies that adjust positions according to upside and downside potential. Listeners will gain valuable insights into a successful approach to microcap value investing, highlighting the significance of in-depth research, robust management teams, and disciplined portfolio management.
