Planet MicroCap Podcast | MicroCap Investing Strategies · Planet MicroCap

Staying Objective with Artem Fokin, Founder and Portfolio Manager at Caro-Kann Capital

·1 hr 1 min·5 clips

Robert Kraft welcomes listeners to uncover actionable microcap investing insights with elite experts.

Artem Fokin, founder of Carrocan Capital, joins host Robert Kraft to discuss his decade-long experience running a concentrated microcap investment strategy. Fokin's approach focuses on identifying multi-bagger opportunities through deep, fundamental analysis. The conversation centers on the discipline required to maintain objectivity while engaging with company management. Fokin advocates for a "bottoms-up" investment process that involves understanding a very limited number of businesses in extreme depth. He emphasizes the principle of being "friendly, but not friends" with management teams to preserve analytical independence. Thorough due diligence must extend beyond the CEO to evaluate the entire senior leadership bench. Fokin argues the microcap sector remains an exceptional training ground for investors despite ongoing structural changes in public markets. He believes avoiding intellectual rigidity is critical for long-term success. The discussion also touches on the practical application of new tools, like artificial intelligence, to enhance traditional research processes. A key insight is that intense concentration forces an investor to know their holdings intimately, which Fokin views as a risk-mitigation strategy. He suggests that the real risk often lies not in concentration itself, but in a superficial understanding of the businesses owned. The "friendly, not friends" mantra is designed to prevent emotional attachment from clouding sell decisions. Fokin contends that assessing a management team's full depth is more revealing than a sole focus on the charismatic founder. He observes that the inefficient nature of microcaps continues to reward diligent, hands-on research methods. Adapting to new information and tools, without abandoning core principles, is framed as a necessary skill for evolution. The tone is educational and conversational, blending philosophical investment principles with specific, practical advice. The style is interview-based, with the host prompting detailed explanations of the guest's methodology. Experienced microcap investors seeking to refine their due diligence and portfolio management discipline would find this episode highly relevant. Listeners preferring quantitative strategies or broad market indexing might find the concentrated, qualitative focus less applicable.

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