The 150-Bagger Value Investors Missed

John Barr is a portfolio manager at Needham Funds, where he runs small- and mid-cap growth strategies. Before Wall Street, he spent fourteen years in electronic design automation software. He then spent seven years as a sell-side analyst covering that same industry before moving to the buy side.

In this episode, John explains his “hidden compounder” framework. He looks for established businesses funding something new the market doesn’t yet understand, with a margin of safety, long-tenured or founder management, and little Wall Street coverage. He walks through two case studies: CRA International, which went sideways for years before re-rating, and Nova, a $40 million microcap he bought at $2 a share in 2009. John also explains how he sizes positions from 10 basis points up, why he trims at the top and rarely sells, and why his portfolio concentrates on US infrastructure, defense and skilled labor.

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