This discussion took place live on July 1st, 2026, on the MicroCapClub Community. Join MicroCapClub and unlock the ability to listen and participate live in these discussions - https://microcapclub.com/#join

Deiya Pernas, CFA, and Dean Pernas are co-founders of Pernas Research, an independent equity research firm whose audited returns have compounded at more than 30% annually since 2017. Deiya previously served as Deputy CIO at The Bahnsen Group, while Dean left a career in chemical engineering in 2020 to invest full-time.

In this episode, they discuss why they built an audited, buy-side research model instead of following the sell-side approach, how they structure a concentrated portfolio using core, starter, and speculative position sizing, and how they think about holding cash in an expensive market. They also walk through two case studies: a contrarian long in Xometry that returned 764%, and a failed investment in sim-racing company Endor, which went bankrupt despite a pandemic-driven demand surge. The conversation closes with the rule they use to manage the risk of averaging down.

✉️ Share your feedback - david@microcapclub.com

✉️ David’s X (Twitter) - https://x.com/Valuehunte

Chapters

00:00 Introduction and guest background

01:31 How the firm was founded and the Pernas brothers' backgrounds

03:14 The buy-side research model and its advantages

04:28 Why they chose to audit their track record

05:35 Dean's background in chemical engineering and investing

07:05 Sources of investment ideas and workflow

10:06 Team collaboration and decision-making process

12:08 Ownership and decision autonomy in trading

13:26 Portfolio structure and risk management

16:01 Communication, transparency, and performance impact

18:01 Market overreactions, AI opportunities, and sector insights

25:03 Favorite themes and recent successes

46:08 Lessons from failures and risk management

54:03 Position sizing, averaging down, and exit strategies

01:01:00 Managing ground-level research and expert calls

01:05:06 Final thoughts on market opportunities and risk

Disclaimer: All content on this channel is for discussion, education, entertainment, and illustrative purposes only and SHOULD NOT be construed as professional financial advice, solicitation, or recommendation to buy or sell any securities, notwithstanding anything stated on this channel. There are risks associated with investing in securities. Loss of principal is possible. Past performance is not a predictor of future investment performance. Ian Cassel and the guests on this channel are not responsible for investment actions taken by viewers. Should you need such advice, consult a licensed financial advisor, legal advisor, or tax advisor. You agree to verify all information yourself before investing. Any past performance discussed during this program is no guarantee of future results. Investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. All views expressed are personal opinions as of the date of recording and are subject to change without the responsibility to update views. No guarantee is given regarding the accuracy of the information on this channel. Releasees undertake no obligation to provide accurate or sound investment statements. You waive any and all duties that may exist flowing from you to any Releasee. You agree not to hold any Releasee liable for any possible claim for damages arising from any decision you make based on information or other content on the Channel.