DBC Deep Value — Seed Book Summary (2026-07-11)
Contributors
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 | | VTRS | 9.0% | $89,994 | Generics cash cow at a distressed multiple, mid-deleveraging | | MOS | 9.0% | $89,998 | Fertilizer cycle trough, replacement-cost discount | | BABA | 11.0% | $109,971 | US-listed ADR; net-cash balance sheet, franchise-value discount | | KHC | 10.0% | $99,996 | Brand portfolio at trough multiple, deleveraging | | Total | 70.0% | $699,849 | |
Est. net / gross vs. bands
- Net exposure: ~70.0% -- squarely at the ~70% design target, comfortably inside the 50-100% IPS band.
- Gross exposure: ~70.0% (no shorts; the fund prohibits shorting) -- well within the <=110% cap.
- Position sizing: every name sits at 9-11% of equity, inside the internal <=12% working guideline and well inside the 20% hard IPS cap.
- Name count: 7 -- inside the mandated 5-12 range.
- Cash: ~$300,151 uncommitted (30.0%).
Resting-until-Monday note
All 19 tranche orders are MARKET/DAY orders submitted over the weekend (quotes are Friday 2026-07-10 closes); per platform convention they rest and fill at Monday 09:30 ET open via the in-process fill cron. "Accepted/resting" is the expected/successful weekend state, not an error.