Focus on Smaller Cap Value Names, Altay Capital

Altay Capital

Focus on Smaller Cap Value Names

Long time value investor. Long/Short portfolio that’s always net long (between 30-80%). I have extensive experience in the video game industry as I founded a leading media company in the space, which I have since exited after an acquisition. Gaming companies only make up ~15% of my portfolio, but its a sector where I believe I have an edge. A newsletter about value investing! Mostly focus on smaller cap value names that aren't widely covered.

Thematic (Sector/Industry)

<ul><li>Beji Sasaki is an unusual investor. He made a name for himself during the bubble economy of the 80s/90s as the ‘takeover man’ and despite not getting too much attention lately, he’s still active in the markets.</li><li>He takes stakes in public companies and aims to improve profitability and wrest control.</li><li>He’s an aggressive corporate raider looking to take control of public companies and maximize profits, a concept that’s anathema in Japan.</li></ul>

Beji Sasaki is an unusual investor. He made a name for himself during the bubble economy of the 80s/90s as the ‘takeover man’ and despite not getting too much attention lately, he’s still active in the markets.He takes stakes in public companies and aims to improve profitability and wrest control.He’s an aggressive corporate raider looking to take control of public companies and maximize profits, a concept that’s anathema in Japan.

Investing Alongside Beji Sasaki: Japan's Unconventional Corporate Raider and Value Investor

Equity Bottom-Up

SANYO INDUSTRIES, LTD.  manufactures and sells a variety of building materials. These products are sheet metal works used for floorings and roofing, aluminum building materials, rooftop ventilators, and screws.  The Company expands into interiors and also provides real estate service.

<ul><li>Sanyo Industries Product Categories Sanyo Industries (TYO 5958) is a manufacturer of construction materials that’s been in business since 1948.</li><li>Their main products are sheet metal works used for flooring, roofing, aluminium building materials, and rooftop ventilators.</li><li>They also manufactur earthquake and other disaster resilient components.</li></ul>

Sanyo Industries Product Categories Sanyo Industries (TYO 5958) is a manufacturer of construction materials that’s been in business since 1948.Their main products are sheet metal works used for flooring, roofing, aluminium building materials, and rooftop ventilators.They also manufactur earthquake and other disaster resilient components.

Sanyo Industries (TYO 5958) - $60m Net-Net With 5 P/E, 3.8% Dividend, That's Buying Back Shares

Sohu.com Limited operates as an online media search and game service group company. The Company provides online brand advertising services on personal computers and mobile devices. Sohu.com serves clients in the People's Republic of China.

<ul><li>This writeup was inspired by David Orr’s tweet about the U.S. listed Chinese company DouYu (Nasdaq: DOYU) paying out a $9.76 special dividend.</li><li>The stock closed at $12.59 the day before and was $6.59 earlier in the year.</li><li>Among Chinese ADRs with significant cash balances, SOHU is my favorite. </li></ul>

This writeup was inspired by David Orr’s tweet about the U.S. listed Chinese company DouYu (Nasdaq: DOYU) paying out a $9.76 special dividend.The stock closed at $12.59 the day before and was $6.59 earlier in the year.Among Chinese ADRs with significant cash balances, SOHU is my favorite. 

Sohu.com Inc (Nasdaq: SOHU): A Net-Net with $1.3B in Cash and Valuable Real Estate

<ul><li>Cover Corp, a leading talent management company in the rapidly growing VTuber industry.</li><li>They’re considered the most prestigious agency and should attract the best talent.</li><li>Superior Underlying Performance Metrics: Cover boasts superior key performance indicators (KPIs) compared to their main competitor Anycolor, including higher engagement metrics like subscribers, hours watched, and viewership.</li></ul>

Cover Corp, a leading talent management company in the rapidly growing VTuber industry.They’re considered the most prestigious agency and should attract the best talent.Superior Underlying Performance Metrics: Cover boasts superior key performance indicators (KPIs) compared to their main competitor Anycolor, including higher engagement metrics like subscribers, hours watched, and viewership.

Cover Corp (TYO 5253) - High Growth Opportunity in the Expanding VTuber Sector

Akatsuki Inc. develops entertainment game applications for mobile devices, some of which are jointly developed with other companies.

<ul><li>Akatsuki Inc (TYO 3932) is a net-net Japanese video game developer with 10 years of profitability.</li><li>They’re undergoing a big transformation in an effort to better compete globally by investing enormous amounts into their core development capabilities and increasing their average budget per game 3-6x.</li><li>They recently formed a capital alliance with Sony (6758) and Koei Tecmo (TYO 3635) with each taking a 10% and 8% stake respectively.</li></ul>

Akatsuki Inc (TYO 3932) is a net-net Japanese video game developer with 10 years of profitability.They’re undergoing a big transformation in an effort to better compete globally by investing enormous amounts into their core development capabilities and increasing their average budget per game 3-6x.They recently formed a capital alliance with Sony (6758) and Koei Tecmo (TYO 3635) with each taking a 10% and 8% stake respectively.

Akatsuki Inc (TYO 3932): A $188M Net Net Japanese Game Developer