In Small Cap investing, there is no substitute for in person meetings.
In Small Cap investing, there is no substitute for in person meetings.
In Small Cap investing, there is no substitute for in person meetings.
In Small Cap investing, there is no substitute for in person meetings.
As allocators of our client's hard-earned capital, it is vital that we get to know and trust the management teams that we invest with, in addition to understanding the business itself.
When traveling we tend to anchor a trip around 1-3 key opportunities and then take as many first meetings in that area as we can. While virtual meeting technology has rapidly improved over the past few years, allowing us to stay in touch with businesses across the world, there is no substitute for in-person meetings. Why? Investing in smaller companies is a people business not a spreadsheet business. Yes, we need to be very financially astute, but we also need to understand people and their motivations, strengths, and weaknesses. Ideally, we like to catch them in their regular routine not when they inevitably become more ‘sales oriented’ ahead of an overseas marketing trip or conference sponsored by one of our sell-side partners.
Next to people costs our travel budget is our biggest expense line as a firm (no it's not because we stay in fancy places) and we expect that to be the case for as long as we are investing.
In 2022, we visited 32 cities in 11 countries on 3 continents, not bad for our first year.
Here is a list of cities where someone (or multiple people) on the team visited and took meetings in 2022:
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