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

The Accent Podcast

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

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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