In this episode of Yet Another Value Podcast, host Andrew Walker is joined by Roderick van Zuylen of Nightwatch to analyze Marex (MRX), a futures commission merchant operating in a consolidated financial infrastructure space. Roderick explains how Marex facilitates derivatives trading for clients like airlines and hedge funds, while benefiting from rising trading volumes and industry consolidation. The discussion covers Marex’s strong returns on equity, acquisition-driven growth strategy, and competitive positioning versus peers like StoneX. They also address risks, including credit exposure, interest rate sensitivity, and a recent short report. The episode highlights why Marex may continue compounding earnings through both organic and inorganic growth.

Roderick's twitter: roojoo3

Night Watch's website: NightWatchIM.com

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[00:00:00] Podcast introduction and guest overview

[00:03:56] What Marex actually does

[00:05:05] Industry consolidation and competitors

[00:07:43] Credit risk and downside scenarios

[00:10:06] FCM role explained simply

[00:11:49] Why ROEs are high

[00:13:57] Acquisition-driven growth strategy

[00:15:12] Market mispricing and valuation

[00:17:24] Private equity overhang concerns

[00:19:21] M&A execution and integration

[00:22:28] Switching costs and customer stickiness

[00:24:24] Why acquisitions are cheap

[00:26:31] Industry structure and limited buyers

[00:28:19] Volatility and revenue dynamics

[00:29:46] Goldilocks volatility discussion

[00:32:59] Buybacks and capital allocation

[00:34:32] Short report overview

[00:35:11] Key allegations addressed

[00:38:29] Cash flow concerns explained

[00:41:10] Company response to short report

[00:42:28] Real-world business validation

[00:43:41] Valuation and upside potential

[00:45:43] Key risks and interest rates

Links:

Yet Another Value Blog - https://www.yetanothervalueblog.com

See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer

Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/

In this episode of Yet Another Value Podcast, host Andrew Walker returns with his monthly solo ramblings covering several themes shaping current markets. He starts by discussing recent volatility and why markets feel inconsistent despite relatively modest index declines. Andrew then explores how long-term tailwinds in software and growth investing may have influenced investor track records over the past decade. He also revisits his three-year rule for evaluating stagnant investments, examining its limitations in cyclical sectors. The episode closes with a discussion on position sizing, emphasizing the need to re-underwrite positions after large price moves and avoid inertia when fundamentals change.

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[00:00:00] Introduction and volatile market overview

[00:00:47] Software investing and track record concerns

[00:01:40] Three-year rule and exceptions

[00:01:56] Position sizing after major moves

[00:05:08] Markets feel inconsistent and strange

[00:08:04] SaaS and growth investing tailwinds

[00:09:43] Track records shaped by favorable cycles

[00:13:49] Revisiting and questioning three-year rule

[00:15:58] Cyclical tailwinds impacting outcomes

[00:17:00] Value creation versus timing importance

[00:19:49] Position sizing mistakes and inertia

[00:22:52] Re-underwriting after losses

[00:24:15] Risk management and cost limits

Links:

Yet Another Value Blog - https://www.yetanothervalueblog.com

See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer

Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/

In this episode of Yet Another Value Podcast, host Andrew Walker speaks with Adam May, a physician, dermatologist, and biotech investor, about how he built an edge in small- and mid-cap biotech. Adam walks through his path from medical school investing to launching a small biotech fund during the 2021 peak, then explains how he sources ideas, studies trial data, and looks for situations where the market is missing something important. The conversation focuses on NKTR and ABVX, including trial design, maintenance data, market skepticism, buyout setups, and how Adam thinks about risk, beta, and asymmetric upside in biotech.

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[00:00:00] Andrew introduces Adam

[00:02:44] Adam’s biotech investing background

[00:07:16] Alpha versus biotech beta

[00:09:51] Finding edge in biotech

[00:17:01] How Adam sources ideas

[00:20:49] Handling concentrated biotech positions

[00:22:59] Biotech drawdown created opportunities

[00:24:49] NKTR thesis and setup

[00:27:53] Lilly data analysis mistake

[00:29:34] Why drugs miss patients

[00:30:34] Eczema need remains large

[00:33:55] Trial nuance drove conviction

[00:36:11] Reverse split scared investors

[00:37:14] NKTR rerating after data

[00:41:21] Why maintenance data mattered

[00:43:32] Buyout versus commercialization path

[00:45:17] Alopecia setup in NKTR

[00:52:25] ABVX background and skepticism

[00:55:00] Maintenance data built conviction

[00:58:54] The killer ABVX slide

[01:01:50] Why ABVX looks acquirable

[01:08:11] ABVX maintenance data ahead

[01:11:27] Andrew closes the episode

Links:

Yet Another Value Blog - https://www.yetanothervalueblog.com

See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer

Production and editing by The Podcast Consultant - https://thepodcastconsultant.com/