Other People's Money with Max Wiethe How this Small Cap Hedge Fund Took Advantage of Crisis & Controversy to Reach Scale | Stoic Point Capital Management
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Sep 9, 2025 Cullen Rose and Raj Shah, co-founders of Stoic Point Capital Management, dive into their journey of capitalizing on the SPAC boom and adapting their investment strategies. They discuss the significant impact of AI on their research methods and cost structures, revealing how technology reshapes finance. The pair also highlight the complexities of maintaining investor relations amidst evolving market dynamics and the shift towards small-cap investments, all while emphasizing the need for transparency and adaptability in a competitive hedge fund landscape.
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SPAC Focus Sparked A New Vehicle
- Stoic Point dove into SPACs and de-SPACs during the 2021 resurgence and built trades around warrants and mispricings.
- They launched a separate vehicle in May 2021 to exploit the high dispersion and hedging opportunities.
D-SPACs Amplify Change Events
- D-SPACs concentrate the change events Stoic Point targets: management change, shareholder rotation, and orphaned securities.
- Those features create high upside asymmetry versus typical mid-cap opportunities.
Use SMAs Selectively
- Accept SMAs when they don't add undue complexity and match investor needs.
- Use SMAs to scale specific long ideas while keeping commingled fund as the default structure.
