Author Topic: Any advice on getting into Value investors club and microcap club  (Read 2628 times)

Denistry

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I applied to VIC thrice last year, the first was a medical equipment with basically a monopoly in the niche (returns: around 400% since then), the second was a net net (returns: only around 10%), the third was a turnaround (returns: around 200% when i sold it), but all of them got rejected. I would very much appreciate some advice from people who managed to get in, since VIC doesn't give any feedback on the pitch. Just wanted to know what are the criteria that VIC looks for and advice on how to get in. I am also interested in microcap club, so any advice on getting into that is much appreciated as well.



pcm983

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Re: Any advice on getting into Value investors club and microcap club
« Reply #1 on: October 03, 2018, 08:49:27 PM »
as someone who is in VIC - my advice is this - read thru 15-20 of the pitches from the 3 months old period - get a feel for the style and what sectors / themes are in vogue - it's impossible to judge performance ex ante so they just go by whether your idea "fits in" so to speak - so my advice is try to goal seek for what is popular on the site

Denistry

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Re: Any advice on getting into Value investors club and microcap club
« Reply #2 on: October 03, 2018, 08:59:21 PM »
That is really good advice. Thanks! I know this may be a long shot, but do you happen to know if certain investment styles are favoured in VIC? for example, perhaps turnarounds are not as favoured as companies with an economic moat. At least this is the vibe that I am getting from reading past posts, I may be wrong.

given2invest

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Re: Any advice on getting into Value investors club and microcap club
« Reply #3 on: October 03, 2018, 09:40:29 PM »
special situations/catalyst +  free cash flow = win


Denistry

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Re: Any advice on getting into Value investors club and microcap club
« Reply #4 on: October 03, 2018, 09:47:42 PM »
Yea, that is what I gathered as well. What about cap size & primary research? I am more of a micro/small cap guy, and my capacity to do primary research is limited (as I am not based in the States right now), but I do try my best to get in touch with professionals working in the field I invest in via emails and such (I also talk to management in most cases).

Also, I know that they are both important, but which is more important? Quality of write up or type of investment idea? This has baffled me for quite a while tbh
« Last Edit: October 03, 2018, 09:54:11 PM by Denistry »

Spekulatius

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Re: Any advice on getting into Value investors club and microcap club
« Reply #5 on: October 04, 2018, 04:27:35 AM »
I agree that performance has nothing to do wether a pitch is selected or not. I suggest plentiful dropping of hedge fund key words like misunderstood, transformation, masked, free cash flow,, hidden, catalyst, investor base, capital allocation etc. to make it last the reviews, based on what I am reading. FWIW, I donít think the quality of most pitches is very high in VIC, but I still like it as a resource to obtain ideas.
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Denistry

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Re: Any advice on getting into Value investors club and microcap club
« Reply #6 on: October 04, 2018, 04:46:29 AM »
I agree with your statement. However, I think that the reason why there seem to be alot of these hedgefund buzzwords is because alot of the contributors are from hedgefunds , so naturally it manifests in their pitches. I feel that the most tangible benefit I get from reading the pitches are the primary research that are done, which would be difficult for retail investors like me to perform, though there is no way to verify whether the truth behind their research & what methodology is used in gathering information.

oddballstocks

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Re: Any advice on getting into Value investors club and microcap club
« Reply #7 on: October 04, 2018, 08:57:32 AM »
Advice above is solid. Content doesn't matter as much as "cultural fit" to use a SV term.

I've tried and been denied.  The best idea I submitted doubled a month or two later.  It was a special situation but too small.

What value are you looking to get out of VIC? I know a few contributors who just dump junk on there to stay active.  There are a lot of hedge fund hotels posted too.
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Denistry

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Re: Any advice on getting into Value investors club and microcap club
« Reply #9 on: October 04, 2018, 12:43:23 PM »
This thread has been really informative and I am really grateful for the great advices. Thanks people! and also, Hi oddballstocks, I recently read your book, the bank investor's handbook, great book man, continue with the good work.

I figured that there is no way of describing my motivations / why I want to get into VIC without sounding arrogant, so here's my background.

I am currently in my junior year in college, majoring in systems engineering (mainly dealing with statistics, simulation & supply chain). I first started investing around 3 to 4 years ago when I was in the military, wondering about what to do with my life, and I really enjoyed investing, so I decided that I want to do that, preferably for the rest of my life. I talked to an up and coming hedgefund manager back then who was helpful enough to let me know what to do going forward and he told me about VIC, and that its a highly coveted place to be in if you're a value investor, so naturally I saw it as the place that I want to get into eventually. Over the next 3 years, I studied finance on my own, while studying for CFA on the side, while working on the weekends and writing for seeking alpha sometimes (poor college kid, lol) and as those of you with an engineering degree might know, surviving through an engineering degree is not exactly a walk in the park.
In essence, I initially wanted to get in because I wanted to prove to myself that I can be a good investor without a "formal" finance background, and also I treat it as a milestone for myself. Eventually I got some pretty good returns and I started thinking that I could actually get into VIC, but I just kept getting rejected, despite spending quite a lot of effort with each pitch. I thought that perhaps my pitch was the problem (of course, that might be the problem, but we will never know), and I was really disturbed by it. But at least now I know that there are so many nuances to getting in and I am starting to feel relief that it might not be a problem with my investment style or pitch.


So thanks guys for letting me know all these, I truly appreciate it. I should had came here to ask this a long time ago.
« Last Edit: October 04, 2018, 01:14:51 PM by Denistry »