DBC Deep Value — Seed Book Summary (2026-07-11)

Mandate recap

DBC Deep Value runs a concentrated special-situations book: 5-12 high-conviction mispricings (post-bankruptcy, forced sellers, busted compounders, sum-of-parts), teaching conviction and patience. Benchmark IWN (small-cap value). Universe: US equities >=$150M cap. Constraints: net exposure +50% to +100%; gross <=110%; max position 20% (book run at <=12%); min 5 / max 12 names; no shorts; adding to losers beyond 1.5x original cost requires a re-underwrite memo; minimum intended holding period 6 months.

Screen / selection criteria

Seven names, each a distinct mispricing mechanism: a foundry/process-node turnaround at a trough multiple (INTC); a busted high-FCF-yield compounder repriced as ex-growth (PYPL); a broadband-pessimism conglomerate discount against genuinely growing parks/studio assets (CMCSA); a distressed-multiple generics cash-flow story mid-deleveraging (VTRS); a replacement-cost discount at a fertilizer-cycle trough (MOS); a US-listed ADR with a net-cash balance sheet trading at a franchise-value/conglomerate discount on regulatory and geopolitical overhang (BABA); and a packaged-food brand portfolio at a trough multiple on GLP-1 headline fear (KHC). Every position was underwritten downside-case-first, with numbers anchored to the live quote, a named mispricing mechanism, and a mandatory pre-mortem, per IPS Section 10.

Position table

Ticker	Weight	$	Mechanism
INTC	10.0%	$99,918	Foundry/turnaround optionality at trough valuation
PYPL	11.0%	$109,987	Busted compounder; FCF machine repriced as ex-growth
CMCSA	10.0%	$99,984	Broadband pessimism; sum-of-parts with NBCU/parks