If you can’t beat them, join them. That’s the mindset Marc Robinson brings to small cap investing right now. The Managing Director at FAX Capital makes the case that the traditional small cap playbook is broken—capital is leaving public markets, private equity is stepping in, and more companies are choosing to go private. His solution: blend public and private investing, take concentrated positions, and actively push for outcomes. He explains how his 70/30 strategy works, why active ownership is critical in Canada’s inefficient small cap market, and how investors can capture a “second bite of the apple” when companies get taken private. Along the way, he breaks down the growing disconnect between public and private valuations—and why that gap is creating opportunity.

In the mailbag, Robinson walks through a series of high-interest small cap names and activist situations, including Calian Group (CGY.TO), Black Diamond Group (BDI.TO), Ag Growth International (AFN.TO), Information Services Corp (ISV.TO), Dye & Durham (DND.TO), WELL Health Technologies (WELL.TO), and cannabis names like Auxly Cannabis Group (XLY.TO) and Cannara Biotech (LOVE.TO). He explains where activism can actually create value—and where it can’t—why some of these “hairy” stories are best avoided, and where he’s seeing real catalysts tied to themes like defense spending, “Build Canada,” and a potential recovery in agriculture.

In Pro Picks, Robinson focuses on higher-quality opportunities with clearer paths to value creation. He highlights D2L (DTOL.TO) as a misunderstood, mission-critical software platform with strong growth and potential upside from improving sentiment (and the company received a takeover offer just a day after his recommendation!) . He also points to Premium Brands Holdings (PBH.TO), arguing the payoff from years of heavy investment is finally coming, setting up a meaningful earnings inflection. Finally, he shares a private market opportunity through FAX Capital’s strategy—NextGen Healthcare Suppliers (private)—a fast-growing IVF supply business benefiting from powerful demographic tailwinds and global demand growth.

This episode is a deep dive into how the smartest small cap investors are adapting—and where the next wave of opportunity may come from.

Timestamps
00:00 Trailer
02:25 Intro
04:25 Robinson’s career trajectory and what makes him tick as a small-cap manager

10:00 Sell-side vs. Buy-side

11:35 A public-private fund
14:50 Exposure in private - private credit is a swear word right now, but there are opportunities

17:20 The market dynamic for small-caps
20:50 Going public vs. going private

25:20 Private opportunities and the FAX approach
27:00 ITM Mailbag: Calian Group stock (CGY)

33:00 Ag growth stock (AFN)

37:40 Information Services stock (ISC)

42:40 Dye & Durham (DND)
45:15 WELL Health Technologies (WELL)
48:40 Pot stocks
53:30 Marc’s Pro Picks (DTOL, PBH, Nexpring Health (private))
1:11:20 ETF Minute: Vanguard’s Asset Allocation ETFs

Sponsors

For over 25 years, Raymond James has been helping Canadians achieve their financial goals. Visit https://raymondjames.ca today to discover how you can live a life well planned.

Pro Picks is brought to you by ATB Financial. Visit https://ATB.com/inthemoney for more information

ETF Minute is sponsored by Vanguard Investments Canada. For more information, visit https://vanguard.ca. Find the Vanguard personality quiz here: https://ad.doubleclick.net/ddm/trackclk/N9826.4923835AKMEDIA/B35656803.444242680;dc_trk_aid=637804713;dc_trk_cid=161303263;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=;dc_tdv=1

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