Planet MicroCap Podcast | MicroCap Investing Strategies · Planet MicroCap

Power Plays with Luis Sanchez, Founder of LVS Advisory

·1 hr 2 min·1 clip

This episode features host Robert Kraft interviewing Luis Sanchez, founder of LVS Advisory, about his firm's event-driven and global growth investment strategies. Sanchez explains his firm's two distinct portfolios: an event-driven strategy targeting uncorrelated returns through hard catalysts and a global growth fund seeking undervalued, high-quality businesses worldwide. He details specific event-driven opportunities, including systematic merger arbitrage ranking and biotech cash shell investing in companies with failed clinical trials. Sanchez describes investing in biotech shells where a stock trades at $5 per share while holding $10 in cash post-trial termination, creating a liquidation arbitrage. He highlights another event-driven play involving a small-cap company selling a division with a nasty contractual liability, bought at three times pro forma EBITDA ahead of a post-deal re-rating. Sanchez expresses strong optimism for merger arbitrage in 2026, citing surging M&A volume, lower interest rates, a laxer regulatory environment, and fewer specialist investors. He contrasts this with his view that the S&P 500 presents unattractive risk due to record valuations and concentration in a narrow group of tech stocks. A fascinating insight is how Sanchez's bottom-up research on specific companies led him to a macro "power thesis" forecasting a massive U.S. electricity shortage. His analysis projects a 50-gigawatt baseload power shortfall by 2030, driven by AI and data center demand. The investment in Talon Energy originated as an event-driven post-bankruptcy play but evolved into a growth portfolio holding as the company secured a hyperscaler data center deal. Sanchez explains how studying companies like Curtiss-Wright, a nuclear reactor core supplier, and Golar LNG, with its floating LNG plants, independently revealed different facets of the broader energy infrastructure opportunity. He provides a deep dive on Golar, noting its stock trades in the low $40s while he values its existing assets at $80-$100 per share, citing unique advantages like mobility and contracts governed by English law. Sanchez notes that Golar's perceived risks, like operating in Argentina and West Africa, are mitigated by investment-grade counterparties and dollar-denominated contracts. The episode has an educational and conversational tone, blending specific investment case studies with broader strategic philosophy. This episode is ideal for investors seeking concrete, catalyst-driven microcap strategies and those interested in the intersection of event-driven investing and thematic macro trends. Listeners solely interested in passive large-cap investing or speculative narratives might find it less relevant.

As heard by us

A bottom-up microcap process built from screens and event catalysts.

The piece follows a microcap thesis coming together from the ground up, not from a big macro call. Luis Sanchez describes LVS Advisory as a two person team leaning on screens, daily news flow, and a lot of rock turning, then letting the companies show the larger theme.

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Why you'd press play

Bottom-up microcap thinking from a team that turns screens, news, and events into investable ideas.

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