We recently built a position in a U.S.-listed company that, in our view, represents one of the most asymmetric opportunities in global small caps today.
A few points that make this situation compelling:
Trades at essentially net cash, implying little to no value for its highly profitable operating business.
Owns one of Asia’s most enduring gaming franchises, which continues to generate strong free cash flow two decades after launch.
Balance sheet strength is unmatched in the sector, with hundreds of millions in cash and virtually no debt.
Historically, governance issues have prevented shareholder returns—but a credible activist is now pushing for dividends, buybacks, and structural reforms.
A near-term shareholder vote could act as the catalyst that forces change and unlocks value.
The setup is simple: the market is pricing the business as if excess capital will remain permanently trapped. But if activism succeeds—even partially—shareholders stand to benefit from meaningful capital returns and a sharp re-rating.
For investors willing to look past the governance noise, this is a rare chance to own a profitable franchise at cash value with limited downside and significant upside if reforms materialize.
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