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There are months when the market rewards discipline. And there are months when it tests it.
February felt like both.
The broad indexes chopped, leadership rotated hard, and we saw the kind of crosscurrents that punish lazy thinking. The tape was not uniformly risk on or risk off. It was selective. It rewarded improvement. It punished narrative drift. And in that kind of market, a deep value portfolio like ours, heavy on tangible asset discounts, special situations, and misunderstood cyclicals, will never move in a straight line.
This remains a classic small-cap deep value portfolio. The median price-to-tangible-book across the holdings sits around 0.84. That is not an accident. We are intentionally fishing in waters most institutional capital refuses to touch. We also have a mix of solid Piotroski scores and a handful of turnaround situations. It is not a buy the best companies at any price portfolio. It is a buy-assets-cheap-and-wait-for-perception-to-change portfolio.small-cap deep value portfolio
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