AccentWealth: Carlo Cannell on investing in Small-Caps, Short Selling and Activist Investing

Carlo Cannell started Cannell Capital in 1992 with just $600k, and the fund grew over time to over $1 Billion. Unlike most fund managers, Carlo returned a portion of the assets back to investors, even though it meant less management fees. But that is not what Carlo is known for. Carlo has a superb track record investing in small-cap stocks, which he tends to hold for many years. Besides investing "long," his repertoire includes short-selling and occasional activist campaigns, which he discusses in this interview in detail.

Disclaimer: No Investment Advice. The information shared in this episode has no regard to the specific investment objective, financial situation or particular needs of any specific recipient. 

The Book Carlo mentioned:

A Money Mind at Ninety by Philip Carret: https://amzn.to/3D6uCZK

Be the first to support The Accent at Patreon: https://www.patreon.com/theaccentpodcast

TIMESTAMPS 

01:55 Carlo on Carlo 

05:00 Carlo’s investment style 

13:05 Investment Process 

16:00 Favored industries 

19:20 Due Diligence 

25:50 Investment Activism 

28:45 Common Mistakes that Boards and Managements make 

33:55 Valuing companies 

35:45 Exiting positions 

40:35 Shorting stocks 

52:05 Sizing of Short Positions 

55:40 Role of LPs 

01:01:10 Returning half a billion to investors 

01:05:35 Investment Management business is unique 

01:08:15 Advice for individual investors