Palm Valley Capital Management’s Q2 2022 Investor Letter

Palm Valley Capital Management, an investment management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. Two-thirds of the non-financial members in the Russell 2000 Index are either unprofitable or trade above 20x EV/EBIT. The median EBIT growth since 2019 for small caps in the sub 10x EV/EBIT bucket is an astonishing 194%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.