Episodes

On this week's Stansberry Investor Hour, Dan and Corey welcome Andrew Walker to the show. Andrew is a portfolio manager at value-oriented hedge fund Rangeley Capital and author of Yet Another Value Blog. He focuses on microcap, deep-value, and special-situations investments.

Andrew kicks off the show by sharing how he got his start as an investor and what inspired him to focus on value investing. He says that while value investing has gotten more competitive over the years, investors can still do well in this space if they think outside of the box. Andrew also discusses his renewed interest in special purpose acquisition companies ("SPACs") and whether de-SPACs are worth wading through for winners...

I do think de-SPACs are an interesting angle. However, a lot of these were 2021 companies, so you've got to turn through a lot of rocks. You're going to find a couple of princes, but you're probably going to find a lot of frogs as well.

Next, Andrew names a couple of companies he invested in and gives his reasoning for each play. The first is a bitcoin miner that emerged from bankruptcy. As Andrew explains, there are a multitude of problems with bitcoin mining, but this miner has managed to curtail some of those and stand out from the pack with its integration of AI. Andrew also talks about the revival of spinoffs, including one particular real estate investment trust that he likes...

The spin has done great. It's been awesome. But because it's the small, quirky spin – office buildings – you know, the initial shareholders didn't want it. Nobody looks at it now because it's small, it's quirky, it's liquidating. But I think there's a huge margin of safety.

Finally, Andrew discusses another spinoff he has invested in – a company that owns prime real estate in Manhattan. With legendary investor Bill Ackman's hedge fund owning nearly 40% of the company, Andrew believes there's much more upside ahead and that a turnaround is likely. He notes...

Prior management, they've invested a ton. You've got this asset that's very small but it's a clear disaster. Now that it spun off, you've got a new, incentivized management team. They're going to make very obvious, quick changes to stem the bleeding... At this point, there's no debt on the balance sheet, there's a lot of cash, and you've got real estate in Manhattan. I think the downside is quite protected.