The North Star InvestCast

Small Cap Bootcamp™- Real Returns in Real Estate

This episode thoroughly analyzes the small-cap real estate sector, REITs in particular, during periods of rising inflation and interest rates. Eric Kuby, CIO of North Star, is joined by Sr. Analyst Jim Lane and Analyst Brooke Kuby to discuss. Their research uncovers the merits of Equity REITs with short duration leases, as well as companies with higher PP&E to enterprise value ratios. Given the uncertain economic environment and recent turbulence in the global economy, this may be a timely sector. At the end of the episode, Brooke interviews Andrew Spodek, CEO of Postal Realty Trust (PSTL), to examine PSTL's differentiated strategy.  To read our research, please visit this website: https://nsinvestfunds.com/wp-content/uploads/2022/12/Real-Estate-White-Paper_FINAL.pdf [https://nsinvestfunds.com/wp-content/uploads/2022/12/Real-Estate-White-Paper_FINAL.pdf] Our next episode will cover small-cap technology companies. To submit a question or other inquiry, please email info@nsinvest.com.

Small Cap Bootcamp™- Simplifying the Healthcare Maze

This episode breaks down how North Star analyzes healthcare companies. Everyone routinely experiences health care through dental, medical, or mental health care services, thus classifying this as an extremely relatable industry. However, healthcare stock valuations can be challenging for value investors. Such investors are likely to invest in out-of-favor, but well-capitalized yet under-earning businesses. To avoid value traps, it is crucial to study the various subindustries, differentiated business models, and positive or negative regulatory catalysts.

Small Cap Bootcamp™ - Meddling in Metals

The small-cap basic materials sector, although few in number of publicly traded companies, has exhibited solid historical performance and is well-positioned to participate in both the growing global economy and benefit from use in necessary technological advances. Bottom-up analysis will be necessary given the cyclicality of many materials companies, as well as due to the tendency of high-demand materials industries to quickly be overcapitalized which can rapidly reduce margins and returns to investors. However, compelling investment opportunities in niche companies with seasoned management teams, stable margin profiles, and appropriate capital structures can be identified amongst small-cap metallic and non-metallic materials companies.

Small Cap Bootcamp™ - Utilities, Energy and Inflation

Inflation Mitigation...Utilities Outshine Energy After generating data going back 20 years, interesting themes emerged. As clean energy becomes more prominent for both generators and providers, the lines become blurred between Small Cap Utilities and Small Cap Energy sectors. Unlike large-caps, historically, small-cap utilities fared quite well during rising interest rate periods. Lastly, unlike large-caps, historically, small-cap energy stocks too fared well during rising interest rate periods, although outperformance to large-cap peers was less consistent.

Small Cap Bootcamp™ - Industrials Sector

Hidden in Plain Sight ESG-Positive Opportunities Within Small-Cap Industrials Investors have been willing to pay aspirational valuations for companies that participate in the #ESG mega-trend. Hiding in plain sight are many small-cap Industrial companies that are trading at "bargain" prices and could be major players in the shifting ESG landscape. Eric Kuby, Chief Investment Officer, is joined by Brooke Kuby, Analyst, to discuss. The next episode in the Small Cap Bootcamp™ will be evaluating the Utilities and Energy sectors. Please submit your questions to info@nsinvest.com.