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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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TEAM Asset Management 2023 Q4 Investor Letter | Buyside Digest

Back to Fund Profile (TEAM Asset Management)

Primary Source Intelligence • Q4 2023 Letter Analysis

TEAM Asset Management Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, TEAM Asset Management. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

YTD+4.6%

Positioning StanceConstructive

GeographyGlobal

Digest Analysis

Quick Take

"Diranko Capital targets small-cap equities in developed markets outside the US, seeking companies with strong balance sheets where business quality is underappreciated."

Executive Summary

Diranko Capital delivered strong Q2 performance with 8.9% after-fee returns, recovering Q1 losses and bringing YTD returns to 4.6%. Since inception in November 2024, the fund has generated 10.0% after-fee returns versus negative returns for small-cap benchmarks. Manager David Diranko focuses exclusively on small-cap equities in developed markets outside the US, believing this provides an edge through analyzing illiquid opportunities larger funds cannot access. The strategy targets companies with tangible balance sheet protection where underlying business quality is underappreciated, seeking asymmetric upside when earnings power becomes evident over three years. Diranko researched over 150 companies this year from a universe where 90% of public companies have sub-$1 billion market caps. He remains cautious about future market conditions, noting that macroeconomic tailwinds supporting the 15-year Goldilocks period are reversing, including rising geopolitical tensions, recession fears, inflation concerns, and higher interest rates. Risk management involves 5-10% position sizing and focus on balance sheet protection.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

65%

CautiousHigh

Moderate (65%)

Manager demonstrates moderate-high conviction through concentrated 5-10% position sizing, clear investment thesis focused on small-caps with balance sheet protection, and systematic research process covering 150+ companies. However, no specific positions are named or sized, and strategy remains somewhat exploratory, preventing a higher score.

Growth Outlook

38%

BearishBullish

Neutral (38%)

Manager expresses caution about future market conditions, stating he remains far from satisfied despite recent performance and is cautious about assuming volatility is behind us. He notes the favorable 15-year period is ending with reversing tailwinds, but stops short of being strongly bearish.

Risk Appetite

25%

DefensiveAggressive

Defensive (25%)

Portfolio remains fully invested in small-cap equities with 5-10% position sizing, showing moderate risk appetite. Manager continues active research and deployment but emphasizes balance sheet protection and downside risk management rather than aggressive risk-taking.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No specific cash level changes or deployment activity mentioned. Manager describes ongoing research and investment process but provides no evidence of net capital deployment or de-risking during the quarter.

Forward Guidance

10%

CautiousExpansionary

Cautious (10%)

Manager indicates he will continue current strategy of researching small-cap opportunities and maintains investment approach, but expresses no urgency to deploy or scale positions. Guidance is cautiously constructive but measured.

Language Signal

45%

BearishBullish

Balanced (45%)

Language contains more risk-focused terms (recession fears, geopolitical tensions, inflation concerns, reversing tailwinds) than opportunity language, though manager also discusses finding mispriced opportunities and asymmetric upside potential.

Perceived Risk

70%

Low RiskElevated

Elevated Risk (70%)

Manager identifies multiple specific macro risks including geopolitical tensions between US and China, recession fears in US and Europe, inflation concerns, and reversal of 15-year favorable conditions. Risk discussion is substantial and central to the letter's thesis.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

Manager sees abundant opportunities in small-cap space, noting over 90% of public companies have sub-$1 billion market caps and describing the universe as broader than the useful life of the portfolio manager. Research of 150+ companies suggests rich opportunity set.

Time Horizon

60%

Short-TermLong-Term

Multi-Year (60%)

Manager explicitly targets three-year horizon for earnings power to become evident and valuation discrepancies to close. Strategy involves exiting when mispricing closes rather than holding for very long-term compounding, indicating medium-term investment approach.