In this episode of the Planet MicroCap Podcast, recorded just ahead of Planet MicroCap Las Vegas, I spoke with Dan Rasmussen, Founder and Manager Partner of Verdad Advisers, to dig into where we actually stand on the value and microcap cycle - and whether the last few years of pain are finally turning into opportunity.
We break down why microcap deep value has lagged since the release of ChatGPT and what that means going forward, why Dan thinks the private equity unwind is still in its early innings, and why Japan remains his highest conviction trade right now despite how well-known the setup has become. We also get into Korea, Europe, and where AI capex spending is likely to disappoint. We mention several companies and sectors during this conversation, and I am not a shareholder in any of them.
For more information about Verdad Advisers, please visit: https://verdadcap.com
Chapters:
00:00 Introduction and guest background
00:26 Overview of the microcap cycle and recent pain
01:25 The 2018-2020 value apocalypse and conviction
02:50 When does value and microcap work best?
03:44 Impact of ChatGPT and AI on value performance
05:17 International vs. US value performance post-AI
09:04 The small cap amplifier and recent market trends
10:06 Eternal truths about market cycles and CAPEX
11:49 Market bubbles, equity issuance, and private markets
21:24 The Japan opportunity and market structure
27:18 Korea's market structure and unique opportunities
34:04 Europe's valuation and macroeconomic challenges
35:52 AI adoption, market outlook, and microcap positioning
38:45 Managing wrong calls and investment discipline
40:30 Final thoughts: Japan as a key opportunity
41:06 Where to find more about Dan Rasmussen
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