Trust Through Transparency. A Serial Optimizer’s Playbook

PoW Update. Preparing for our China trip, our Quarterly Call, and the mission to scale trust.

Announcement and Performance

Quick reminder, we will go live on Monday, April 13th, at 18:00 GMT. Here’s a link to the stream:

https://open.substack.com/live-stream/160103

To wrap things up, here is the performance tracker for our Proof of Work (PoW hehe…) / Pick of the Week company posts:

Performance since post date:

• 🟢 +32.25% — Weighted Average of Allocated Picks

• ⚪ +11.43% — All Picks

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A Moment of Reflection Before…

With our Quarterly Call next week and a deep-dive trip to China on the horizon, things are moving fast.

But before we dive back into the data, we wanted to take a second to breathe and share some context with you.

We are, by nature, obsessed with the details: Serial Optimizers.

We love making those tiny, incremental tweaks to every post and every strategy. Some might call it perfectionism; we see it as a responsibility. Our goal isn’t just to grow… we want to become the #1 microcap publication on the internet.

That might sound like an ego-driven statement, but it truly isn’t. It comes from a place of deep respect for the game.

I’ve learned that while competition is everywhere (and is inevitable), ‘smart competition’ is what actually changes the world.

To us, that means refusing to follow a pre-written script. It means becoming the defining entity in our space, the one who creates the segment and sets the standards that others eventually follow.

This drive is what fuels everything we do: the publication, our hedge fund, our strategy, and most importantly, how we treat you.

As we grow, we’ve realized the secret sauce is actually quite simple, yet rare.

Individually, it isn’t about being the smartest person in the room; it’s about trust. We believe the only way to earn that is through radical, sometimes uncomfortable, transparency.

On a larger aggregate scale, the real difference-maker is the team we are building around that trust; a group of individuals who may be outstanding in a single field, but together stand strong across every segment.

Our hope is that you find value in our journey. In our wins, our bruises, and everything in between. Whether you are here as an observer, an investor, or a colleague, the ‘how’ matters less than the ‘why.’

What matters most is that you are here by our side. So…

If you’re new here, you will find the following information quite useful ;D

🗺️ Navigating The Hermit (Your Deliverables)

We publish heavily researched content twice a week. Here is how to use it:

1. The Institutional Deep Dive

• For Paid Subscribers

• A 50+ page thesis covering the business model, valuation, and risks. This is the core product

2. Priority Briefs

• For Inner Circle

• Full transparency. We share exactly what we are buying/selling in our regulated fund, with audited returns.

3. The Hermit Portfolio

• For Paid Subscribers

• Full transparency. We share exactly what we are buying/selling in our regulated fund, with audited returns

4. Pick of the Week (Saturdays)

• For Paid Subscribers

• A concise snapshot of a company on our radar. It focuses on one key angle: Asset Value, Backlog, or Margins

5. Our Investing Journey

• For Everyone

• Essays on cognitive biases, the psychology of money, and the reality of running a fund

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🏆 Hall of Fame (Start With These)

If you are new, don’t start with today’s post. Start with our Hall of Fame.

These write-ups demonstrate exactly how we generate alpha.

The Monopolies (Our Bread & Butter)

• California Nanotechnologies: The US monopoly on advanced materials (SPS/Cryomilling). A deep dive from prototype to production

• Corticeira: [Free] The undisputed global king of cork (60% market share). A masterclass in analyzing a durable moat

• Limes Clinics: [Mostly Free] The world’s most exclusive mental health operator. High margins, high barriers to entry

The Compounders & Consolidators

• Atlas Engineered Products: A structural winner in the Canadian building market. “Truss(t)” the process of consolidation

• QXO: The “Brad Jacobs” Playbook. How a serial compounder is building the next construction giant

• Omni-Lite Industries: Inside a multi-division Aerospace & Defense powerhouse making precision components

The Special Situations

• Spartan Delta: An Oil & Gas consolidator with massive operational leverage. A masterclass in acquisition-driven value creation

• Century Casinos: A classic CAPEX cycle play. How they 10x’d capacity using creative financing

• BluMetric: The water-tech turnaround with a massive backlog of military contracts

The Mindset

• Why Bitcoin Is Going to Zero: A framework for valuing non-productive assets

• How to Invest When You’re Not a Full-Time Investor: The 3-step playbook

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🛠️ The Toolkit

We believe in open-sourcing our methods. Here are the tools we use daily:

• Valuation Tool: The simple model we use to sanity-check price targets

• The Scuttlebutt Guide: How to interview management like a journalist

• The All-Weather Portfolio: How to structure your capital for decades of survival

Disclaimer

This presentation is provided for informational purposes only and is not intended to be, and should not be taken as an offer or solicitation to buy or sell any securities or to invest in any investment strategy. The information contained in this presentation is not investment advice and should not be relied on as the basis for any investment decision.

The views, thoughts, and opinions expressed in this presentation belong solely to the author and are not necessarily indicative of the views of Equity Focus FIL, Hermit Ventures Ltd., 25Delta E.A.F., their management, affiliates, or employees. This presentation may contain forward-looking statements, which are based on beliefs, assumptions, current expectations, estimates, and projections of the author. Such statements are subject to risks and uncertainties that could cause actual results to differ materially.

Readers should consider the investment objectives, risks, charges, and expenses of any investment carefully before investing. The author does not guarantee the accuracy or completeness of the information presented, which is subject to change without notice. The author is not responsible for any errors or omissions, or for the results obtained from the use of this information.

This publication does not take into account the investment objectives, financial situation, or specific needs of any particular participant. It is not to be construed as legal, tax, investment, or other advice, and the author recommends that investors seek independent financial, legal, and tax advice before making any investment decision.

Investments involve risks, including the loss of principal. The value of investments and the income from them can fluctuate, and investors may not get back the amount originally invested. Past performance is not necessarily indicative of future results.

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