Complete Capital Structure Analysis™: Penn Capital's Secret to Small-Cap Success

In this episode of the Rainmaker Podcast, Gui Costin interviews Eric Green, Chief Investment Officer at Penn Capital, about the firm’s innovative approach to small-cap investing. With over 25 years of experience, Eric explains Penn Capital’s Complete Capital Structure Analysis™, a strategy that examines a company’s entire capital structure, from secured debt to equity, to uncover value and manage risk. This approach enables Penn Capital to identify market inefficiencies and outperform traditional small-cap managers.Eric discusses the firm’s focus on leveraged small-cap companies, which historically deliver strong long-term performance. He also highlights key macroeconomic factors positioning small-caps for a rebound, including deregulation, M&A activity, and interest rate cuts. Sectors like natural gas, gaming, and restaurants are identified as areas of opportunity.Concluding with advice on diversification, Eric explains how Penn Capital’s strategies complement defensive managers, providing actionable insights for investors navigating the small-cap market.