Ep. 36: Micro Cap Mastery & Unit Economics w/ Connor Haley, Alta Fox Capital

Podcast
Written By Alex Barrow

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Disclaimer

Nothing you hear on this podcast is in any way, shape or form to be construed as investment advice. The guest on this podcast may hold positions in any/all names mentioned during the podcast. This is not investment advice and investors should always conduct personal due diligence before investing in any security. Past performance of any funds mentioned are not indicative of future returns.Connor Haley is the founder and managing partner of Alta Fox Capital. If you haven't heard of Connor Haley, here's a few highlights:

  • Graduated Harvard University
  • Founded Alta Fox Capital in 2018 and has generated (to date) 40% gross annualized returns
  • #1 Micro Cap Investor on Micro Cap Club

Connor is a fantastic investor and great business thinker. He focuses all his attention on the fundamental unit economics of business, as well as what makes for a lasting competitive advantage.He fishes in overlooked areas (small-micro cap stocks) and routinely hunts overseas in search of attractive IRRs.We spend an hour diving into the nuances of business fundamentals, unit economics and why Connor rarely does a DCF model.

Time-Stamp

  • [1:36] Intro Questions
  • [7:12] Traditional Education & Self-Taught Investors
  • [13:36] Lessons From The Best Chess Players
  • [17:21] Skewed Institutional Incentives
  • [19:56] Top-Ranked Micro Cap Club Member
  • [22:17] Connor's 3-Pronged Strategy During COVID
  • [27:17] Understanding How Competitors Compete
  • [28:41] The Power of Unit Economic Analysis
  • [34:44] Asking Questions Like An Owner
  • [39:52] Stop Worrying About P/E Ratios
  • [47:11] 3-5 Year Time Horizons & Multiples
  • [51:35] Connor's Q2 Letter & Highlights
  • [55:05] Don't Focus on the Market Narrative
  • [59:47] Looking International For Ideas
  • [60:00] Closing Questions

If you're interested in learning more about Connor Haley and Alta Fox, check out the following links:

Alex Barrow

Founder & MO Team Lead, CIO at Foundation Capital, macro junky, former Intelligence professional at FBI, DIA, and DOD, USMC Scout Sniper turned yogi/meditator.

https://x.com/MacroOps
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