Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 30th June 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 7.2% | 8.6% |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 7.2% | 8.6% |
Greystone Capital returned +7.2% in Q2 2026 and +8.6% year-to-date, underperforming indices driven by narrow AI-related gains. Manager Adam Wilk actively avoids AI infrastructure despite it representing a third of the S&P 500, citing valuation risk at 50-60x revenues for unprofitable businesses and contradictory valuations between chip sellers and buyers. Instead, capital flows to neglected niche industrials with mispriced earnings power, strong competitive positions, and capable management teams. Top positions include Pitney Bowes, a mail and package services business trading at 15% free cash flow yield with strategic review underway, Natural Resource Partners coal royalties yielding 13% on trough cash flows, KITS Eyecare growing rapidly despite 30% YTD decline, and Shift4 payments down 22% but valued at mid-single-digit EBITDA multiple versus $120-160 intrinsic value estimate. Portfolio companies like Limbach, APi Group, and Bel Fuse demonstrate the pattern of hidden value in businesses with misleading financials, no clean labels, and unit economics requiring primary research. Manager added three new positions and continues researching opportunities in an attractive environment for the strategy. Since inception, Greystone has returned +222% versus +114% for Russell 2000.
Greystone Capital pursues concentrated value investing in neglected small-cap niche industrials where the market misprices earnings power due to misleading GAAP financials, lack of analyst coverage, or stale labels, creating asymmetric return opportunities that require patience and primary research to surface.
Manager expects to continue generating strong returns over longer periods despite short-term performance deviations from indices. The current market environment creates unusually wide gaps between popular and neglected opportunities, which the manager views as positive for the strategy. The manager is busy researching many new opportunities as the opportunity set remains very attractive, particularly in niche industrials and payments.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 31 2026 | 2026 Q2 | APG, BELFB, FOUR, KITS.TO, LMB, NRP, PBI | AI Avoidance, Coal Royalties, Concentration, neglect, Niche Industrials, payments, small caps, value | - | Greystone Capital pursues concentrated small-cap value in neglected niche industrials while actively avoiding overvalued AI infrastructure. Q2 return of +7.2% lagged AI-driven indices but core holdings like Pitney Bowes, Natural Resource Partners, and Shift4 offer asymmetric upside at 13-15% cash flow yields and mid-single-digit EBITDA multiples. Manager adding to positions during volatility and researching new opportunities in attractive environment for mispriced earnings power. |
| Apr 15 2026 | 2026 Q1 | SES.TO | Buybacks, Canada, Concentration, small caps, value, Waste management | SES.TO | Greystone outperformed in Q1 2026 through concentrated small-cap value investing, avoiding expensive growth stocks. The strategy focuses on businesses with durable demand and intelligent capital allocation. Secure Waste Infrastructure exemplified the approach as a toll booth waste management business that was acquired for 50-60% gains in eight months. |
| Jan 24 2026 | 2025 Q4 | APG, BEL, DR.TO, FC, FOUR, KITS.TO, LMB, LNF.TO, LSPD.TO, NRP, SQ, SYZ, TOST, VYX | Buybacks, Coal, concentrated, E-Commerce, payments, small caps, value |
NRP KITS CN APG DR CN FOUR |
Greystone's concentrated small-cap value strategy underperformed in 2025 but maintains strong long-term track record. The manager systematically upgraded portfolio quality, exiting weaker positions for businesses with clearer value drivers. Top holdings include coal royalties, e-commerce eyecare, fire safety services, and surgical hospitals. New position in integrated payments company Shift4 offers compelling risk-adjusted returns. Current opportunity set remains unusually attractive for patient capital. |
| Oct 30 2025 | 2025 Q3 | APG, BELFB, DR.TO, IVFH, KITS, NRP, SYZLF | Concentration, fundamentals, Quality, small caps, value |
SYZLF CN IVFH SYZLF CN IVFH |
Greystone's concentrated small-cap value strategy underperformed in Q3 amid speculative market rally, but manager maintains conviction in fundamental approach. Portfolio of real asset-backed businesses trading at attractive valuations contrasts with market's overvaluation of quality and speculation in theme stocks. Multiple holdings positioned for 15-25% IRRs over 3-5 years with strong downside protection. |
| Jul 30 2025 | 2025 Q2 | APG, DR.TO, KITS.TO, NRP, SYZ.TO | Coal, E-Commerce, healthcare, Quality, small caps, software, value |
NRP APG SYZ CN KITS CN DR CN NRP APG SYZ.TO KITS.TO DR.TO |
Greystone delivered 14.8% in Q2 through concentrated small cap value investing, outperforming major indices. Top holdings include coal royalties, fire safety, software, e-commerce eyecare, and healthcare. Despite small cap underperformance, the manager sees strong opportunity set and is deploying cash from earlier selling. Five-year track record supports patient, focused approach to quality businesses. |
| May 2 2025 | 2025 Q1 | BELFB, FC, KITS.TO, LNF.TO, NRP, XPOF | E-Commerce, Optical, Quality, small caps, tariffs, Trade Policy, value, volatility |
NRP LNF.TO BELFA KITS.TO |
Greystone Capital's Q1 2025 return of -7.9% reflects broad market volatility from tariff fears rather than fundamental deterioration. The manager sold underperforming positions and initiated KITS Eyecare, a disruptive e-commerce optical retailer. With elevated cash levels and focus on high-quality small companies, the strategy remains patient and opportunistic, viewing current uncertainty as chance to upgrade portfolio quality. |
| Jan 20 2025 | 2024 Q4 | APOG, BELFB, DESP, FRAN, IVFH, LMB, NRP, SYZLF | Coal, Concentration, Distribution, Patience, royalties, small caps, value | - | Greystone delivered +19.9% in 2024 through concentrated small cap value investing, owning zero S&P 500 companies while focusing on overlooked businesses with superior fundamentals. Despite late-quarter volatility affecting small caps, the manager sees excellent opportunities in microcaps and small companies trading at cheap multiples, emphasizing patience and multi-year investment horizons for quality businesses. |
| Oct 30 2024 | 2024 Q3 | LNF.TO, NNBR | Canada, Concentration, Furniture, Quality, retail, small caps, value | - | Greystone delivered 10.1% Q3 returns focusing on quality small caps. Major position Leon's Furniture dominates Canadian furniture retail at 6x EBITDA with $1.2-1.6B real estate value catalyst. Manager sold lower-quality NNBR to concentrate on compounding businesses. Strong small cap flows and rate cuts may benefit strategy emphasizing selectivity over passive index exposure. |
| Jul 26 2024 | 2024 Q2 | APG, BELFB, LMB, MFCSF, SYZLF | Concentration, management, Quality, small caps, Trust, underperformance, value |
SYZLF BELFB APG LMB MFCSF |
Greystone Capital's concentrated small cap value strategy delivered 6.3% YTD returns despite broad small cap underperformance. Manager Adam Wilk maintains high conviction in trustworthy management teams running quality businesses at attractive valuations, expecting eventual outperformance when small caps rotate back into favor. Portfolio concentrated in top seven positions across software, electronics, construction, and healthcare services. |
| May 18 2024 | 2024 Q1 | BELFB, DR.TO, IVFH, LMB, NNBR, SYZ | Food Distribution, management, Manufacturing, small caps, turnaround, value |
IVFH NNBR |
Greystone returned -0.1% in Q1 despite two major holdings declining 25%, offset by strong performance elsewhere. The manager added two new small-cap positions with turnaround potential under new management teams. Portfolio remains concentrated in undervalued companies with strong balance sheets and share buyback programs, positioned to benefit from market volatility creating opportunities for patient investors. |
| Jan 2 2024 | 2023 Q4 | APG, BELFB, CURN, FC, LMB, SENEA, SYZLF, THRY | Concentration, Outperformance, SaaS, small caps, value | - | Greystone delivered 18.1% Q4 returns but lagged for the full year. Manager maintains conviction in concentrated small-cap strategy, arguing passive investing created structural opportunity as small caps represent under 4% of market. Top five holdings represent 65% of portfolio, positioned for significant growth at attractive valuations. Recent additions include Thryv and Franklin Covey during market weakness. |
| Oct 31 2023 | 2023 Q3 | BELFB, BFIT, IDT, MFCSF, SENEA | Bear Market, Buybacks, cash flow, Microcap, small caps, value |
BELFB MFCSF SENEA |
Small-cap specialist Greystone Capital sees exceptional opportunities in the current bear market, adding three new positions at attractive valuations including a turnaround electronics manufacturer and a surgical hospital operator. Despite Q3 underperformance, the manager is highly optimistic about multi-year prospects as quality businesses trade at deep discounts with strong cash generation. |
| Jul 30 2023 | 2023 Q2 | APG, BSFFF, CURN, LMB, RICK, SYZLF | Construction, Currency Exchange, Fitness, Hospitality, small cap, value | - | Greystone Capital targets growing, cash-generating small businesses trading at single digit multiples during the fourth major valuation dislocation period in decades. Despite Q2 underperformance versus large cap indices, manager maintains high conviction in concentrated portfolio of quality companies being ignored by current market structure, expecting strong returns when obvious value becomes impossible to ignore. |
| Aug 5 2023 | 2023 Q1 | BSFFF, GFF, POL, SYZLF | concentrated, Public Sector, Quality, SaaS, small caps, software, value |
AAGFF BSFFF APOLLOHOSP.NS SYZLF |
Concentrated small-cap value manager sees significant opportunities in quality businesses trading at deep discounts despite Q1 banking concerns and recession risks. Added SaaS position Sylogist at major discount to peers, increased Basic-Fit stake, trimmed Griffon on macro concerns. Historical data supports small-cap outperformance following negative periods, with portfolio positioned for long-term earnings growth regardless of economic environment. |
| May 2 2023 | 2022 Q4 | APG, BSFFF, EDR SM, GFF, IDT, POL, RICK | - | - | |
| Nov 15 2022 | 2022 Q3 | POL, RMNI, TIUM/U CN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Niche IndustrialsManager identifies niche industrials as one of the most reliable hunting grounds for mispriced earnings power. These businesses operate in specialized, mission-critical corners like fire protection, waste processing, and mechanical services, and pair strong operations with misleading GAAP numbers and little analyst coverage. Value creation happens through mix shifts, volume leverage, small acquisitions, and growing installed bases over 12-36 month periods. |
Industrial Services Waste Management HVAC Facilities Management Industrial Distribution |
AIManager views AI as the single biggest factor driving markets and the most popular investing theme, representing roughly a third of the S&P 500. However, the manager actively avoids the AI trade due to valuation risk, noting that chip sellers and buyers are valued on contradictory promises and some areas trade at 50-60x revenues for unprofitable, capital-intensive businesses. The manager states they can be bullish on AI but pass on the current opportunity set due to considerable valuation risk. |
AI Semiconductors Data Centers Cloud Infrastructure GPUs | |
NeglectManager describes neglect as the closest thing to raw material at Greystone, where the market neglects specific businesses through no analyst coverage, checkered pasts, or no natural buyers, or neglects time horizons where value appears beyond most managers' investment timeframe. This neglect creates mispricings that require behavior the market is fundamentally unable to supply. The manager views current market conditions as creating unusually wide gaps between popular and neglected opportunities. |
Value Small Caps Quality | |
PaymentsManager maintains positions in Shift4 Technologies despite shares declining 22% YTD and views the payments space as incredibly attractive. The manager is actively researching multiple opportunities in the sector and believes Shift4 could return multiples of current share price with base case intrinsic value between $120-160 per share versus $48 current price. |
Payments FinTech Merchant Acquiring | |
CoalManager holds Natural Resource Partners as a coal and soda ash royalty business. While acknowledging near-term pricing challenges and oversupply, the manager notes the world is on track to consume record amounts of coal while production has declined 2% year-over-year. The manager emphasizes NRP is a royalty business with minimal price risk, guaranteed minimum payments, and a net cash balance sheet that should yield approximately 13% on trough free cash flow figures. |
Coal Thermal Coal Metallurgical Coal Mining Services | |
| 2026 Q1 |
Waste ManagementSecure Waste Infrastructure represents a toll booth business model where waste volumes from oil and gas drilling must flow through their infrastructure network. The business has transformed from cyclical energy services to 80% recurring waste management revenues, providing pricing power and reduced cyclicality compared to traditional energy services. |
Infrastructure Recurring Revenue Pricing Power Energy Waste Toll Booth |
BuybacksCapital allocation through share repurchases is highlighted as a key value driver. Medical Facilities Corp doubled by repurchasing nearly half of outstanding shares, while Secure Waste Infrastructure reduced shares by 25% since late 2022. The manager views intelligent capital return as creating per-share value even when markets don't award higher multiples. |
Share Repurchases Capital Allocation Per-Share Value Management Quality | |
Small CapsThe portfolio consists of small companies mostly outside major indices, with positioning focused on smaller and cheaper corners of the market. This concentration in small caps is presented as providing better opportunities and less correlation to broad market movements. |
Concentration Value Index Independence Market Cap Focus | |
| 2025 Q4 |
AIAI emergence has created market hysteria and broad software sell-offs despite limited real-world adoption. Manager believes incumbent software firms with domain expertise and proprietary data are better positioned than AI-native startups to capture long-term benefits from AI integration. |
Artificial Intelligence Software Automation Technology |
SoftwareSoftware sector treated as monolith awaiting AI disruption, creating valuation disconnect. Manager maintains significant overweight despite recent underperformance, believing dominant vertical platforms can successfully reinvent themselves for agentic world and fend off AI-native competitors. |
Enterprise Software SaaS Technology Vertical Software | |
ValueRecent broadening out of returns and leadership shift to small cap value industries has been anticipated but fund unable to capitalize due to software overweight. Traditional value industrial exposure outweighed by cheaper software holdings. |
Small Cap Value Value Investing Industrial | |
HotelsChoice Hotels represents asset-light, high-margin hotel franchisor trading at distressed multiple due to cyclical headwinds. Company shifting portfolio toward higher revenue segments including extended stay and international expansion, with potential for significant cash unlock and share buybacks. |
Hospitality Franchising Extended Stay Real Estate | |
| 2025 Q3 |
ValueManager emphasizes disciplined value investing approach, focusing on businesses with real assets, cash flows, and clean balance sheets trading at attractive valuations. Contrasts this with market's speculative appetite and overvaluation of quality stocks at 35-55x free cash flow multiples. |
Fundamentals Valuation Intrinsic Downside Quality |
Small CapsPortfolio concentrated in small companies mostly outside major indices, with top six holdings representing 75% of capital. Manager notes small cap rally driven by thematic flows and speculation, while maintaining focus on cash-generative smaller businesses in inefficient market corners. |
Concentration Russell Inefficiencies Microcap Indices | |
| 2025 Q2 |
Small CapsSmall caps remain in prolonged underperformance relative to large caps, with capital flowing to emerging markets instead. Despite conditions for outperformance being in place for years including resilient economy, cheap valuations, and decade-plus underperformance, the return profile shows fits and starts pattern. Manager believes environment will eventually shift and small caps will get their moment in the sun. |
Russell 2000 Underperformance Valuations Outperformance Microcap |
CoalNatural Resource Partners is positioned for long-term upside despite near-term headwinds from lower met coal prices. The business was stress-tested during the worst coal environments and remained cash flow positive. Manager estimates met coal prices will be significantly higher by end of decade due to severe supply/demand imbalance, with 2025 projected as another record year for global coal consumption. |
Metallurgical Coal Royalties Supply Demand China Pricing | |
E-commerceKITS Eyecare represents a founder-led e-commerce eyecare business with tremendous growth since 2018 inception. Through organic growth, cost discipline and revenue mix-shift toward high margin eyeglasses, KITS has opportunity to become long-term compounder. Manager believes they are in early stages of incredibly long growth runway given increasing category momentum online. |
Eyecare Founder Led Margins Growth Online | |
| 2025 Q1 |
Trade PolicyTariff measures announced against global trade partners created geopolitical and recession fears, driving market volatility. The inconsistency and unpredictable messaging around new trade rules creates planning difficulties for businesses. Portfolio companies have varying direct exposure to tariffs, with Natural Resource Partners, Leon's Furniture, and Bel Fuse being the only holdings with direct tariff exposure. |
Tariffs Geopolitical China Trade Policy |
E-commerceKITS Eyecare represents a disruptive e-commerce optical retailer operating at an inflection point with 30-35% organic growth. The optical industry is shifting online, with contacts penetration growing from 5% to 40% since 2005, and eyeglasses from 1% to 18%. This shift accelerated post-COVID, creating enormous runway for growth in the $70B US optical industry. |
Online Digital Disruption Optical Growth | |
QualitySignificant emphasis placed on business quality over recent years, investing in strong competitive positions, high quality management teams, rock solid balance sheets and substantial durability. A large portion of companies have decades-long operating histories, strong track records of free cash flow generation, clean balance sheets and ability to withstand adverse economic conditions. |
Durability Balance Sheets Management Competitive Cash Flow | |
Small CapsPortfolio consists of concentrated investments in small companies mostly outside major indices, with returns typically varying from S&P 500 and Russell 2000. The focus on small companies provides opportunities during market volatility as these companies get cheaper and present upgrade opportunities for portfolio quality. |
Concentrated Indices Volatility Opportunities Russell | |
| 2024 Q4 |
Small CapsManager emphasizes small caps and microcaps are providing an excellent opportunity set for patient investors, largely remaining attractive due to current market environment favoring largest businesses. Portfolio consists of companies mostly outside major indices with zero S&P 500 holdings and just two Russell 2000 companies. |
Small Caps Microcaps Russell 2000 Value Opportunity |
ValueStrategy focuses on buying good businesses with margin of safety at cheap prices. Manager notes there are plenty of bargains with better risk/reward profiles in overlooked areas while avoiding expensive large cap concentration. Companies trade at cheaper multiples than average business. |
Value Margin of Safety Cheap Bargains Multiples | |
CoalNew investment in Natural Resource Partners represents first energy investment since firm inception. Coal royalty business model provides 90% free cash flow margins with 30-40 years of reserves. Despite anti-ESG sentiment, global coal consumption reached record high of 8.7 billion tons in 2024. |
Coal Royalties Energy ESG Commodities | |
Carbon CaptureNRP positioned for carbon sequestration with 13 million acres including storage rights. Already entered agreements with Occidental Petroleum and Exxon Mobil subsidiary for Direct Air Capture facilities. Industry may attract $150 billion in global investments this decade. |
Carbon Capture Sequestration Storage Technology Environment | |
Food DistributionInnovative Food Holdings operates specialty food distribution marketplace connecting vendors to chef customers. Business has been de-risked through cost reductions, divesting non-core assets, and acquiring two distribution businesses. Partnership with large retail chain for gourmet cheese supply expected to add double digit revenue growth. |
Food Distribution Specialty Marketplace Retail Growth | |
| 2024 Q3 |
Small CapsManager focuses exclusively on small companies mostly outside major indices, benefiting from record flows into small caps and potential sustained rotation. Emphasizes that selectivity matters in small caps due to poor index construction and overexposure to operationally and financially risky companies. |
Small Cap Selectivity Index Construction Flows Rotation |
QualityManager reflects on past mistakes of selling quality businesses too early and replacing them with lower quality opportunities. Moving forward, focuses exclusively on higher quality businesses that can compound value over long periods rather than shorter-term return streams. |
Quality Compounding Business Strength Long-term | |
ValueLeon's Furniture purchased at less than 6.0x EBITDA and 9.0x free cash flow with significant margin of safety. Manager emphasizes finding businesses trading below intrinsic value with favorable risk/reward profiles. |
Valuation EBITDA Free Cash Flow Margin of Safety | |
| 2024 Q2 |
Small CapsManager focuses exclusively on small company investing, noting that small cap underperformance has persisted while large caps dominate market returns. Believes small cap valuations have deviated notably from large companies and expects eventual outperformance when the strategy comes back into favor. |
Small Cap Underperformance Valuations Outperformance Strategy |
ValuePortfolio constructed around finding value in smaller, obscure areas of the market among businesses improving earnings power. Manager seeks businesses with excellent fundamentals, great management, and dirt-cheap valuations, expecting both improved earnings and multiple expansion over time. |
Value Earnings Power Fundamentals Multiple Expansion Cheap Valuations | |
QualityEmphasis on trustworthy management teams and high-quality businesses with strong competitive positions. Manager prioritizes companies that are conservatively financed, have long-term focus, fair compensation policies, and culture of accountability. |
Quality Trustworthy Management Competitive Position Conservative | |
| 2024 Q1 |
Food DistributionSpecialty food distributors like IVFH serve a critical niche in the food distribution ecosystem by providing add-on offerings for broadline distributors and sourcing quality fresh foods for professional chefs. The fragmented industry provides opportunities for M&A growth, with private equity actively pursuing specialty food distribution acquisitions. |
Specialty Food Distribution Professional Chefs Broadline M&A |
Small CapsSmall cap and microcap indices gave back nearly all their year-to-date gains in April. The manager focuses on concentrated investments in small companies mostly outside major indices, which creates typical variance from broad market returns but offers opportunities during periods of market difficulty. |
Microcap Concentrated Indices Variance Opportunities | |
ValueThe portfolio owns companies with a good combination of growth and value at prices below what could be considered reasonable. Most companies have sizeable net cash positions and are engaged in meaningful share repurchase programs at favorable valuations, representing classic value characteristics. |
Growth Reasonable Prices Net Cash Share Repurchase Valuations | |
| 2023 Q4 |
Small CapsManager emphasizes that small caps now make up less than 4% of the U.S. equity market due to large cap valuation expansion, creating a void where very few investors are choosing small caps to outperform. Markets in both the US and Canada are offering tremendous bargains consisting of well-managed, growing businesses that generate cash, trading at single digit multiples of cash flow. |
Microcaps Valuation Outperformance Cash Flow |
SaaSMultiple portfolio companies have successfully transitioned to SaaS models including Sylogist's cloud-based platform transformation and Thryv's SaaS segment targeting $1 billion in revenues by 2027 with 20% EBITDA margins. Franklin Covey has grown their subscription business into a sticky, high margin, high LTV service offering with 60% of revenue on multi-year contracts. |
Subscription Recurring Revenue Cloud Transformation | |
ValueManager focuses on finding quality investment ideas trading at attractive valuations, with portfolio companies representing high quality businesses with attractive risk/reward profiles and strong forward IRRs. The approach emphasizes not overpaying for good investments and finding well-managed, growing businesses trading at single digit multiples. |
Undervalued Quality Risk Reward Multiples | |
| 2023 Q3 |
Small CapsManager emphasizes that small-caps and micro-caps are in a bear market with the average stock in the iShares Micro-Cap ETF down 43% from 52-week highs versus 19.1% for the S&P 500. Russell 2000 valuations remain at 20-year lows relative to large caps, creating significant opportunities for patient investors. |
Microcap Russell 2000 Valuations Bear Market Opportunities |
ValueThe manager describes purchasing boring, cash flowing businesses at cheap prices with multiple businesses showing double digit free cash flow yields. The current environment has created opportunities to buy quality businesses that are being sold off, with valuations mattering again after a period where cash flows and balance sheets were ignored. |
Cash Flow Cheap Prices Quality Valuations Mispricing | |
BuybacksManagement partners are taking advantage of declining stock prices by repurchasing shares. Medical Facilities Corp returned significant capital by repurchasing nearly 20% of shares outstanding last year alone, and Bel Fuse insiders have been purchasing stock since 2021. |
Share Repurchases Capital Return Insider Buying Stock Purchases | |
| 2023 Q2 |
Small CapsManager emphasizes that small cap valuations are severely dislocated from larger businesses, creating the fourth such period in decades alongside 1974 Nifty-Fifty era, Dot-com bubble, and 2020 pandemic. Growing, well-managed, cash-generating small businesses are trading at single digit multiples while being underfollowed due to current market structure and fear from 2022 hangover effects. |
Valuation Dislocation Opportunity |
ValuePortfolio consists of growing, well-managed, cash-generating businesses trading at single digit multiples of earnings or cash flow. Manager believes these quality companies are not priced correctly and that this valuation gap will close over time as the obvious becomes impossible to ignore. |
Multiples Mispricing Quality | |
FitnessBasic-Fit is the largest fitness operator in Europe with outstanding unit economics on mature club base and strong barriers to scale. Despite analyst concerns, the company is growing memberships, building new clubs, raising prices, and executing growth strategy while competitors struggle. |
Europe Growth Expansion | |
ConstructionLimbach Holdings is shifting business mix from lower-margin General Contractor work to higher-margin Owner Direct recurring maintenance services. The company targets 75/25 ODR/GCR revenue mix over time, with ODR offering mission-critical building systems maintenance with double-digit growth prospects. |
Recurring Margins Transformation | |
| 2023 Q1 |
Small CapsManager emphasizes small companies remain cheap due to structural forces and misperceptions about risk, creating opportunities to purchase quality businesses at bargain prices. Notes small-cap bear market with Russell 2000 down 25% from peak, but historical data shows 100% positive five-year returns following negative periods. |
Russell 2000 Microcap Concentrated Value Quality |
ValuePortfolio consists of traditional value investments priced at large discounts to fair value estimates, trading at single digit multiples of cash flow with growth prospects. Manager expects strong results from companies with bright prospects regardless of macro environment. |
Discount Fair Value Cash Flow Multiples Undervalued | |
SaaSNew investment in Sylogist represents mission-critical software solutions to public sector verticals with 65-70% recurring revenue, high margins, and strong cash flow conversion. Peers trade at 20x+ EBITDA while Sylogist trades below 9x despite similar characteristics. |
Software Recurring Revenue Public Sector Subscription Mission Critical |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 15, 2026 | Fund Letters | Greystone Capital | SES.TO | Secure Waste Infrastructure | Waste Management | Environmental & Facilities Services | Bull | New York Stock Exchange | Canada, Energy Services, infrastructure, M&A, operating leverage, Share Buybacks, Toll Booth, turnaround, Value, waste management | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | NRP | Natural Resource Partners LP | Energy | Coal & Consumable Fuels | Bull | New York Stock Exchange | balance sheet, coal, Distributions, Freecashflow, royalties | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | KITS CN | KITS Eyecare Ltd | Consumer Discretionary | Specialty Retail | Bull | New York Stock Exchange | ecommerce, Eyewear, growth, Margins, Unit economics | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | APG | APi Group Corporation | Industrials | Security & Alarm Services | Bull | New York Stock Exchange | cashflow, Fire Safety, infrastructure, recurring revenue, resilience | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | DR CN | Medical Facilities Corporation | Health Care | Health Care Facilities | Bull | New York Stock Exchange | buybacks, cashflow, Demographics, Hospitals, valuation | Login |
| Jan 24, 2026 | Fund Letters | Adam Wilk | FOUR | Shift4 Payments Inc | Information Technology | Data Processing & Outsourced Services | Bull | New York Stock Exchange | buybacks, Margins, Payments, Platforms, scale | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | SYZLF CN | Sylogist | Information Technology | Application Software | Bear | TSX | cashflow, ERP, management, Outlook, Risk, Software, valuation | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | IVFH | Innovative Food Holdings | Consumer Staples | Specialty Distribution | Bull | NASDAQ | Distribution, Food, growth, management, restructuring, specialty, turnaround | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | SYZLF CN | Sylogist | Information Technology | Application Software | Bear | TSX | cashflow, ERP, management, Outlook, Risk, Software, valuation | Login |
| Oct 30, 2025 | Fund Letters | Adam Wilk | IVFH | Innovative Food Holdings | Consumer Staples | Specialty Distribution | Bull | NASDAQ | Distribution, Food, growth, management, restructuring, specialty, turnaround | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | NRP | Natural Resource Partners L.P. | Energy | Thermal Coal | Bull | NYSE | cashflow, coal, deleveraging, royalties, Supplydemand | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | APG | APi Group Corp. | Industrials | Engineering & Construction | Bull | NYSE | Automation, cashflow, Regulation, Safety, services | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | SYZ CN | Sylogist Ltd. | Information Technology | Software - Application | Bull | NYSE | growth, Integration, Margins, Recurringrevenue, Software | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | KITS CN | Kits Eyecare Ltd. | Consumer Discretionary | Specialty Retail | Bull | NYSE | ecommerce, Eyewear, growth, Retention, Uniteconomics | Login |
| Jul 30, 2025 | Fund Letters | Adam Wilk | DR CN | Medical Facilities Corp. | Health Care | Medical Care Facilities | Bull | NYSE | acquisition, cashflow, divestiture, Margins, Surgery | Login |
| Jul 1, 2025 | Fund Letters | Greystone Capital | NRP | Natural Resource Partners | Energy | Coal & Consumable Fuels | Bull | NYSE | China, coal, commodity, Cyclical, debt reduction, energy, Free Cash Flow, metallurgical coal, Mining, royalties | Login |
| Jul 1, 2025 | Fund Letters | Greystone Capital | APG | APi Group | Industrials | Commercial Services & Supplies | Bull | NYSE | Acyclical, Fire Safety, Free Cash Flow, industrial services, inspection services, Life Safety, M&A, multiple expansion, recurring revenue | Login |
| Jul 1, 2025 | Fund Letters | Greystone Capital | SYZ.TO | Sylogist | Information Technology | Application Software | Bull | TSX | ARR growth, Canada, Counter-cyclical, ERP software, Government, Mission-Critical, Non-profit, recurring revenue, SaaS, turnaround | Login |
| Jul 1, 2025 | Fund Letters | Greystone Capital | KITS.TO | KITS Eyecare | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | TSX | Canada, Consumer Discretionary, digital health, e-commerce, eyecare, founder-led, growth, high-margin, online retail | Login |
| Jul 1, 2025 | Fund Letters | Greystone Capital | DR.TO | Medical Facilities Corp | Health Care | Health Care Facilities | Bull | TSX | Acyclical, Canada, capital allocation, defensive, Free Cash Flow, healthcare, Share Buybacks, Surgical Hospitals, Value | Login |
| May 1, 2025 | Fund Letters | Greystone Capital | NRP | Natural Resource Partners | Energy | Coal & Consumable Fuels | Bull | NYSE | asset-light, capital returns, coal, commodity, distribution yield, energy, Free Cash Flow, Royalty | Login |
| May 1, 2025 | Fund Letters | Greystone Capital | LNF.TO | Leon's Furniture | Consumer Discretionary | Home Furnishing Retail | Bull | TSX | Canadian Retailer, defensive, furniture, Import Leverage, M&A Opportunity, market share, supply chain, Value | Login |
| May 1, 2025 | Fund Letters | Greystone Capital | BELFA | Bel Fuse | Information Technology | Electronic Components | Bull | NASDAQ | cash generation, Electronic Components, Industrial, leverage, manufacturing, Pricing power, technology, Value | Login |
| May 1, 2025 | Fund Letters | Greystone Capital | KITS.TO | KITS Eyecare | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | TSX | direct-to-consumer, disruption, e-commerce, eyecare, growth, manufacturing, recurring revenue, vertical integration | Login |
| Jul 1, 2024 | Fund Letters | Greystone Capital | SYZLF | Sylogist | Information Technology | Application Software | Bull | OTC | Canada, Counter-cyclical, Education, Government, margin expansion, Non-profit, recurring revenue, SaaS, Software, vertical software | Login |
| Jul 1, 2024 | Fund Letters | Greystone Capital | BELFB | Bel Fuse | Information Technology | Electronic Components | Bull | NASDAQ | capital allocation, cash generation, Components, Cyclical Recovery, data centers, electronics, manufacturing, Share Buybacks, Space | Login |
| Jul 1, 2024 | Fund Letters | Greystone Capital | APG | APi Group | Industrials | Construction & Engineering | Bull | NYSE | Construction services, Fire Safety, Free Cash Flow, M&A, margin expansion, operating leverage, Recession-resistant, recurring revenue, Statutory Services | Login |
| Jul 1, 2024 | Fund Letters | Greystone Capital | LMB | Limbach Holdings | Industrials | Construction & Engineering | Bull | NASDAQ | Construction services, Cyclical Reduction, data centers, healthcare, HVAC, margin expansion, ODR Services, recurring revenue, Relationship-based | Login |
| Jul 1, 2024 | Fund Letters | Greystone Capital | MFCSF | Medical Facilities Corp | Health Care | Health Care Facilities | Bull | OTC | asset monetization, capital allocation, cash generation, defensive, healthcare, Hospitals, Management Change, Share Buybacks, turnaround | Login |
| May 1, 2024 | Fund Letters | Greystone Capital | IVFH | Innovative Food Holdings | Consumer Staples | Food Distributors | Bull | NASDAQ | asset-light, cash flow generation, M&A Target, Management Change, niche market, Professional Chefs, Specialty food distribution, turnaround | Login |
| May 1, 2024 | Fund Letters | Greystone Capital | NNBR | NN, Inc. | Industrials | Industrial Machinery | Bull | NASDAQ | Activist Backed, automotive, Cost Structure Improvement, Medical devices, Mission-Critical Components, Operational Leverage, Precision Manufacturing, turnaround | Login |
| Oct 1, 2023 | Fund Letters | Greystone Capital | BELFB | Bel Fuse Inc. | Information Technology | Electronic Components | Bull | NASDAQ | Aerospace, Electronic Components, manufacturing, margin expansion, Mission-Critical, Telecom, turnaround, Value | Login |
| Oct 1, 2023 | Fund Letters | Greystone Capital | MFCSF | Medical Facilities Corp. | Health Care | Health Care Facilities | Bull | OTC | activist, Aging demographics, capital returns, healthcare, M&A Target, Orthopedics, Surgical Hospitals, turnaround | Login |
| Oct 1, 2023 | Fund Letters | Greystone Capital | SENEA | Seneca Foods Corp. | Consumer Staples | Packaged Foods & Meats | Bull | NASDAQ | asset value, Canned Vegetables, consumer staples, Index Removal, market consolidation, Net-Net, Pricing power, Value | Login |
| May 1, 2023 | Fund Letters | Greystone Capital | AAGFF | Griffon Corp. | Industrials | Building Products | Neutral | NYSE | Building Products, capital return, Housing, Industrials, Share Buyback, Special dividend, strategic review | Login |
| May 1, 2023 | Fund Letters | Greystone Capital | BSFFF | Basic-Fit | Consumer Discretionary | Leisure Facilities | Bull | Euronext Amsterdam | Consumer Discretionary, Europe, Fitness, Gyms, market share, Post-Pandemic Recovery, Pricing power, Scale Advantages | Login |
| May 1, 2023 | Fund Letters | Greystone Capital | APOLLOHOSP.NS | Polished.com | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | OTC | cash flow positive, e-commerce, Home Appliances, inventory management, Jefferies, Sales Process, Special Situation, turnaround | Login |
| May 1, 2023 | Fund Letters | Greystone Capital | SYZLF | Sylogist Ltd. | Information Technology | Application Software | Bull | TSX Venture Exchange | Canada, M&A strategy, Management Turnaround, Microsoft Dynamics, organic growth, public sector software, recurring revenue, Rule of 40, SaaS, valuation discount | Login |
| TICKER | COMMENTARY |
|---|---|
| PBI | Pitney Bowes fits many of the criteria we look for in an investment, especially as a volume driven toll booth, and as mentioned, like Secure, the opportunity was born of neglect. PBI had a checkered past, poor management, no real ownership base, no public comps, and was a small cap with no top line growth operating in an industry associated with secular decline. The 'declining mail company' label deterred most buyers, and the strength of the business was masked due to years of reported GAAP losses driven by impairments, restructuring charges, and the now-divested Global E-commerce segment which was losing hundreds of millions of dollars annually. Pitney Bowes is a niche industrial that helps businesses send mail and packages, providing software, equipment, financing, and sorting services that make the process easier, cheaper, and more efficient. The company operates two segments, SendTech and Presort. SendTech represents roughly two-thirds of revenue and 70% of EBIT and is the dominant provider of postage meters and mailing technology in the United States. The USPS authorizes only four companies to supply postage meters, and the barriers to entry are significant. Certification requires years of compliance history, and PBI's installed base of approximately 750,000 active meters generates recurring rental, supplies, service, and financing revenue with renewal rates in the high 90s. SendTech has a long history of profitability and high returns on capital and could offer some growth opportunities from here. Within SendTech sits Pitney Bowes Bank, an industrial loan bank holding more than $575 million of low-cost customer deposits that provides postage and equipment financing to roughly 400,000 long-tenured customers. No competitor can offer the same integration of equipment, software, and financing in a single relationship, and management is now evaluating options to grow or monetize the bank, any of which would surface value for which the market currently gives little credit. Presort is the largest workshare partner of the United States Postal Service, operating a national network of 40+ mail sorting centers that process first-class and marketing mail on behalf of large corporate mailers before injecting it deeper into the postal network at discounted rates. Businesses that send mail in large volumes would rather not manage the sorting themselves, so they hand it to PBI, who commingles mail from many customers, sorts it in a way no individual mailer could achieve on their own, and splits the resulting postage discount with the customer. The USPS workshare discount is set annually by a statutory cost-avoidance formula, meaning pricing typically indexes to inflation independent of competitive dynamics, and PBI is the only national-scale operator in an industry otherwise composed of family-run regional players. Presort grew revenue in 11 of the past 13 years, has completed more than 30 tuck-in acquisitions of regional operators at low-single-digit EBITDA multiples over the past 25 years, and operates a largely fixed-cost network where incremental volume drops to the bottom line at contribution margins approaching 100%. Despite annual declines in physical mail, Presort has consistently outgrown those declines at low-single-digit rates through share consolidation, pricing, and new client additions. Although it's true that physical mail volumes decline every year, it would be wrong to equate that with deterioration in PBI's core business. For example, SendTech has absorbed a 28% revenue decline since 2017 while expanding EBIT margins by 90 basis points to 32.8%. The view of 'melting ice cube' was incorrect, and I found PBI to instead represent a durable installed-base business with some pricing power, harvesting cash from a sticky and still-relevant customer base. As with all our investments, management is incredibly important here and represents the exact type of alignment with minority shareholders we seek. PBI is run by Kurt Wolf, a fund manager and activist investor who became CEO last year. Since joining the Board and then taking over as CEO, Kurt exited the money-losing ecommerce business, eliminated more than $200 million of costs, replaced nearly the entire operating team, corrected the Presort pricing error, and repurchased stock as aggressively as any management team I'm aware of. During 2025, PBI repurchased 17% of its shares outstanding, retired another 15.9 million shares in the first quarter of 2026, and increased the buyback authorization to $750 million, with management stating that repurchases remain the priority as long as the stock trades at a significant discount to intrinsic value. As of this writing, at a share price near $18, PBI carries a market cap of roughly $2.5 billion against 2026 free cash flow guidance of $360-410 million, an approximately 15% free cash flow yield. Using conservative assumptions for Presort recovery, no growth in free cash flow and a multiple below any infrastructure or services comparable, PBI would be valued in the mid-$20s per share. If PBI can return to growth as management is positioning it to do, intrinsic value would compound from there. Importantly, in June, PBI formally launched the second phase of its strategic review to evaluate the full spectrum of alternatives including a sale, and in late July added a director to the board's Strategic Review Committee whose experience includes evaluating strategic alternatives and overseeing mergers. Although I'm not underwriting a sale, infrastructure and logistics services comps regularly transact at 10-14x EBITDA, roughly double where PBI trades today. |
| NRP | Natural Resource Partners is our coal and soda ash royalty business, which I first introduced as a new investment in our Q4 2024 letter. Since then, pricing conditions for NRP's key commodities have worsened and NRP's share price has remained flat to slightly down for the past year and a half. The soda ash market is in disarray, and for NRP's Sisecam Wyoming JV, where they own a 49% stake in what has historically been a strong generator of royalty payments, is now consuming cash to service debt at the corporate level, with NRP having to provide a $39M cash infusion as of the most recent quarter, which gave the appearance of continuing cash needs for the JV. Our work indicates that the cash infusion should be viewed as one time event, and over a much longer period of time, management is aiming for soda ash to become a very large part of the total royalty stream. On the coal front, despite increased global demand, the market remains a bit oversupplied, leading to unfavorable near-term price action. As a reminder, we are not underwriting significant increases in the price of thermal or met coal, only that the state of the world remains the same, consisting of a severe supply demand imbalance. The world is once again on track to consume record amounts of coal, while production figures have declined nearly -2.0% from this time last year. There will be a time when the world no longer needs thermal coal, and to a lesser extent met coal, but those days are far away, and in the meantime, there are plenty of reasons to be bullish these commodities, with artificial intelligence adding yet another given the datacenter boom and widespread need for low cost and effective baseload power. Keep in mind, NRP is a royalty business, so we are taking as little price risk as possible, with guaranteed minimum payments from NRP's lessors despite low production activity, and a balance sheet that can finally withstand lower prices should they materialize. This is not the same NRP from years ago, and management will begin to demonstrate that within the coming quarters, holding a net cash balance sheet and finally beginning to make sustained distributions of excess free cash flow, which as of today's share price should yield us in the neighborhood of 13% per year on close to trough free cash flow figures. Any normalization in the soda ash market, higher met and thermal coal prices, and carbon capture optionality, along with the occasional supply disruption, are pure upside to those numbers. I remain confident that upside is greater than 100% of today's price over time, with a strong margin of safety underpinning our investment. |
| KITS.TO | KITS continues to build a unique business that is growing fast, is customer focused, and offers price and convenience advantages that are difficult to replicate. The lazy read on this business is that the moat rests on being vertically integrated, as KITS owns their optical lab, allowing them to manufacture eyeglasses in-house. While important, I think that view is incorrect. Plenty of industry incumbents own optical labs. What almost nobody else delivers is a quality pair of prescription glasses for roughly 1/3rd to 1/4th the price of traditional retail or optometrist, able to be shipped to a customer's door within two days. The cost advantages KITS has relative to their competitors allows them to pass those cost savings on to customers, meaning KITS moat is their price and convenience gap along with having the discipline not to close it by harvesting margin too early. KITS has also eschewed traditional marketing channels, opting for word-of-mouth and local influencer partnerships, allowing them to avoid the 'CAC is the new rent' paradigm, by my estimates, often spending 6-10x less than competitors to acquire a new eyeglasses customer. Most importantly, customer behavior is improving from year to year, with order frequency, average order values and retention rates all increasing, evidence that customers are starting to re-think what eyeglasses should cost. Despite strong business performance through the end of 2025 and the beginning of 2026, KITS stock is down -30% YTD, and at one point was down close to -50%. Strong business results met with declining share prices are usually good situations to step in front of. I've been adding to our position as the thesis plays out and expect another strong year during 2026 and 2027 as KITS glasses business continues to grow and as they expand into new geographies and reach new customers. One recent highlight includes KITS opening their second brick and mortar location, this time in downtown Toronto. Although I expect KITS to remain primarily a pureplay e-commerce business, select physical stores in popular geographies have shown to be excellent customer acquisition tools, providing another brand touch point to customers outside of Vancouver. Despite rapid growth, since inception KITS has been relatively concentrated in one geographic area of Canada, and the Toronto store will open additional opportunities for them to expand East and ultimately more into the US. I believe we are still in the early innings for KITS, and the growth runway remains massive, which is why my estimate of intrinsic value is multiples of today's share price. |
| FOUR | I originally shared the investment thesis for Shift4 in our Q4 2025 letter, so I don't have much to add here. However, very shortly after that letter was published, FOUR reported their Q4 / FY2025 results, which were strong, but revealed weaker than expected guidance for 2026 including slower than expected growth, near-term headwinds for their tax-free shopping business, and lower than expected free cash flow conversion. Negative sentiment toward payments related stocks hasn't helped, and FOUR shares have declined -22% YTD, at one point down nearly -50%. I believe FOUR remains a compelling investment and could return multiples of the current share price, and I've been adding to our position. Importantly, I don't believe a lot has to go right from here for the stock to work. FOUR should continue to grow faster than the market because they're exposed to integrated payments, have differentiated vertical software/products, and can cross-sell payments into their acquired customer bases. Also, incremental FCF conversion is still around 60%, which should drive 100-200 bps of annual total FCF conversion improvement as EBITDA grows. Beyond that, if the Global Blue deal doesn't turn out to be a massive disaster, as I wrote here, FOUR will look incredibly cheap at today's valuation. Shift4 trades at a mid-single-digit multiple of EBITDA and less than 10x my estimate of 2026 earnings. My base case estimate of intrinsic value sits between $120 - $160/share, using very conservative assumptions, and a multiple way below peer companies. This compares to FOUR's price of $48/share today. In addition to reinvesting in the business, management is steadily repurchasing stock, and Founder Jared Isaacman made a significant purchase of stock in the open market as recently as May of this year. Of note, Q1 results were very strong, and guidance was reiterated for the year, giving me confidence that things continue to trend in the right direction. Outside of FOUR, the payments space is incredibly attractive right now, and I'm busy researching a handful of opportunities. |
| LMB | Limbach is a good example of how screens can get it wrong. When we purchased our shares years ago, consolidated GAAP numbers made Limbach look like a low-margin mechanical contractor, a profile most investors would dismiss immediately. Inside the company, however, was Owner Direct Relationships, a recurring, higher-margin, asset-light service business growing 15-20% per year and solid returns on capital. The consolidated financials blended the two together, which meant the more attractive segment stayed invisible to investors. Spending time with management, employees and customers, one of which was located a mile down the road from my parents' house, was paramount in understanding the misperception, and revealed that service work carried gross margins 12-15 points higher and served a market growing several times faster. |
| APG | APi Group revealed what can happen when a business operates without a clean label. Investors struggled with a durable business wrapped inside what looked like a cyclical one, as growth investors saw project-based construction and thought cyclical slow growth, while value investors saw steady cash flow and no multiple re-rating. APG was initially labeled a project-based contractor roll-up while management shifted the revenue mix from roughly 30% recurring inspection and service work to closer to 60% today, raising margins and cash flow while reducing cyclicality. What stood out during our initial due diligence was the potential margin story. Inspection revenue carried roughly ten points more gross margin than contract work, and monitoring roughly twenty, so every point of mix that shifted toward recurring work raised margins with near-mathematical certainty. |
| BELFB | Bel Fuse screened even worse. GAAP profitability was negative and margins sat at roughly a third of peer levels, despite products with long design cycles, high switching costs, and a high cost of failure, the same qualities the market paid up for elsewhere. Investors saw 'electronic components manufacturer,' assumed cyclical commodity business, and priced it accordingly. Conversations with a new CFO made the mispricing understandable, as Bel had looked at SKU-level profitability for the first time in decades, and despite holding sole-source positions on products, Bel had never systematically raised prices in its history. EBITDA margins moved from 5% to 15% once they did. |
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