In this episode of the Planet MicroCap Podcast, I spoke with Leo Trudel, Co-Founder of Aurelion Research, to dig into his global, top-down approach to finding mispriced companies across micro, small, and mid-cap markets - and why he built a firm where the research and the portfolio are one and the same.

We break down his obsession with free cash flow over adjusted EBITDA, how he uses AI to hold management teams accountable to years of past guidance, why tankers may still be more compelling than people think, and his contrarian take on where the AI capex buildout is headed. We mention several companies and sectors during this conversation, and I'm not a shareholder in any of them.

For more information about Aurelion Research, please visit: https://aurelionresearch.com/

Chapters:

00:00 Introduction to Leo Trudeau and Aurelion Research
01:58 Leo's Investment Journey and Philosophy
06:42 The Aha Moment: Founding Aurelion Research
08:37 Defining Mispricing in Investments
10:57 Top-Down Approach to Investment Selection
13:05 Identifying Quality Companies in Trending Industries
15:16 Navigating Mispricings and Investment Philosophy
18:52 The Importance of Cash Flow Over Adjusted EBITDA
22:55 Red Flags in Accounting Practices
23:56 Finding Opportunities in Crowded Industries
28:10 The Shipping Industry's Demand Surge
31:02 Navigating Chemical Market Challenges
32:20 Timing and Sentiment Indicators
36:56 Evaluating Management: Green and Red Flags
41:53 Qualitative Due Diligence: Real-World Insights
47:14 The Power of Being Contrarian
50:35 Evolving Beliefs: Lessons from Experience

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