In this episode of the Planet MicroCap Podcast, I spoke with Leo Trudel, Co-Founder of Aurelion Research, to dig into his global, top-down approach to finding mispriced companies across micro, small, and mid-cap markets - and why he built a firm where the research and the portfolio are one and the same.
We break down his obsession with free cash flow over adjusted EBITDA, how he uses AI to hold management teams accountable to years of past guidance, why tankers may still be more compelling than people think, and his contrarian take on where the AI capex buildout is headed. We mention several companies and sectors during this conversation, and I'm not a shareholder in any of them.
For more information about Aurelion Research, please visit: https://aurelionresearch.com/
Chapters:
00:00 Introduction to Leo Trudeau and Aurelion Research
01:58 Leo's Investment Journey and Philosophy
06:42 The Aha Moment: Founding Aurelion Research
08:37 Defining Mispricing in Investments
10:57 Top-Down Approach to Investment Selection
13:05 Identifying Quality Companies in Trending Industries
15:16 Navigating Mispricings and Investment Philosophy
18:52 The Importance of Cash Flow Over Adjusted EBITDA
22:55 Red Flags in Accounting Practices
23:56 Finding Opportunities in Crowded Industries
28:10 The Shipping Industry's Demand Surge
31:02 Navigating Chemical Market Challenges
32:20 Timing and Sentiment Indicators
36:56 Evaluating Management: Green and Red Flags
41:53 Qualitative Due Diligence: Real-World Insights
47:14 The Power of Being Contrarian
50:35 Evolving Beliefs: Lessons from Experience
You can listen to the Planet MicroCap Podcast on Spotify, Apple Podcasts, YouTube, or wherever you get your podcasts.
Planet Microcap hosts the highest quality in-person microcap events in North America. The mission is to bring the best microcap investors, companies, and allocators together to gather, connect, and grow.; visit https://planetmicrocap.com/ to learn more about our Las Vegas and Toronto events.
This presentation is for informational purposes only and should not be construed as a recommendation to purchase or sell any security referenced herein. Planet MicroCap Holdings LLC and MicroCapClub LLC (collectively, “we” or “our”) are not licensed brokers nor registered investment advisors. We, our partners, contractors, members, subscribers, guests, or affiliates may or may not hold positions in one or more of the securities mentioned in this presentation and may trade in such securities at any time. We may have received cash compensation from one or more participants for presenting at past, present, or future events. We recommend you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this presentation.