Phoenix Investing
Direct Public Investing in Global SMID Caps and Crypto Using Nature's Complex Intelligence Lens
Global, Micro-to-Large Capitalization Equities:
At Phoenix Investing, we use our extensive experience in the small capitalization investment space and our living complex systems principles to research and make investment recommendations in micro-to-large-capitalization public companies.
Using our unique natural intelligence investment principles, we find the diamonds in the rough, misunderstood, oversold, contrarian or off-the-radar global investment opportunities, looking for moonshot or outsourced returns. We work actively with management teams to help them unlock value in ways that are in coherence with our living system investment principles.
We recently added large capitalization companies to the mix. Even large companies can soar or fall quickly in these liminal space days. Investing during these times requires a strong ability to connect the dots in lateral ways which is our core competence. Most investment analysts are very siloed so that is a big advantage for us. We are also very comfortable in risky, volatile areas. We look in unconventional spaces for insights and at many types of reports and data. Fortunately, the days of having to pay millions for fancy investment reports, even quant reports, are coming to an end, leveling the playing field for all kinds of investors.
Crypto:
At Phoenix Investing, we are also adding crypto to our mix since the area fits well with our natural intelligence principles. It tends to be a volatile area with big sell offs following a large bubble and then rising again. Though this area is risky and volatile, it shares many characteristics with the volatility and risk of the smaller capitalization public equities space. It fits well with our edge of chaos focus at Pythia Capital. We are always seeking the phoenixes emerging from the ashes.
The Investment Opportunity
Global, Micro-to-Large Capitalization Equities:
Many private companies were funded at very high valuations over a long period of time. Many stock prices of recent IPOs are under pressure. Inflation started to climb significantly, so the Federal Reserve raised interest rates at a time where there were numerous interconnected global crises that were also pressuring companies such as figuring out the “new normal” after the pandemic, war in Ukraine, an energy crisis, global geopolitical instability, concern about climate change, intense polarization in global societies, supply chain shortages, food shortages, increased violence, and corruption in many business, scientific, and geopolitical areas.
Valuations in both private companies (outside of the current bubble of the moment AI) and smaller public companies are under pressure, not participating to same degree as large capitalization companies have in the recent rallies. There are large bubbles in many companies across industries that received too much funding during the boom years. After so many years of investors throwing money at popular trends and companies without concern of business model viability, valuation, or execution ability, we are in the beginning stages of a wash out. Some companies will make it, and many will not. Valuations will continue to come down in many overvalued areas in both the private and public markets.
Companies are looking for new ways to raise money and some of them are exploring the public markets, mainly through reverse mergers or merging with SPACs (which was also an area of overfunding, and that money needs to go to work within a certain time frame). Most of these are value traps. There are SEC investigations and some violations of security laws. This was a good example of the madness of the crowds in action as many reputable and good people were swept into this FOMO (Fear of Missing Out) movement. If you are someone that specializes in seeking assets from bankruptcy and feel you can add some value, now might be a time to get creative. There is mainly bottom fisher style predatory money in this world, so just think what could be done with real leadership skills, creative solutions and a desire to enable more phoenixes to rise from the ashes. There are some interesting products, services and technologies caught up in this mania and subsequent dark tower falling moment.
Also, there is not the institutional know how or support for many micro and small cap companies that there used to be. This space can be highly illiquid and predatory, with many algorithms or internet rumors knocking prices around. The deal terms are often toxic as well which makes it hard to invest in this area.
Nonetheless, Lynn Marie DePippo, our Founder and CEO, has considerable experience in rapidly changing industries, investing in science and technology, and maneuvering through the general ups and downs of the small capitalization public markets.
Some of the companies are early stage but are very interesting. If they find supportive, high-quality investors, they can eventually grow out of this difficult situation. The valuations are quickly becoming much more reasonable in the public markets than they are in the private markets which is really just beginning to deal with the reality of this new environment.
We look at all sizes of companies and are very theme driven, to make the opportunities interesting but also to hedge investment risks through diversification. All industries are going through a large amount of creative destruction so the long term skills we developed in smaller, high risks areas are very useful now.
This is not for investors that are afraid of risks, as the aforementioned multiple crises are very real, but the opportunities are also large. There is the potential of earning venture capital type returns in the public markets but over much shorter time frames.
We focus on small-to-large-capitalization, global public companies across industries. We stick to our living system principles. However, since this is the public investing space and these principles in their entirety reflect a world that really does not exist yet, investors do need to understand this is a journey and not a destination. In general, there is far less greenwashing using these principles as applying natural intelligence tends to be brutally honest. If you use our principles correctly, you can figure out where the corruption is occurring and why. Where companies are weak in certain areas, we highlight it and give support when we can and when the management teams are willing to listen.
We are investors comfortable on the fringe or liminal space to look for new opportunities and new phoenixes to rise from the ashes. Using natural intelligence principles actually helps you find the phoenixes earlier than other people. We leverage our extensive experience and natural intelligence process to connect the dots in unique ways and think systemically. Our process helps to manage risks more proactively. Our process helps investors to think strategically about how to make money by aligning with the mission and purpose of these important companies. That alone separates this group from most investors that invest in smaller public companies. The management teams have a rough time in today's markets, but there are incredible people and ideas mixed in the sea of chaos in the smaller public company area.
We tend to focus on areas of higher risk but also higher reward. Strangely enough, some of the smaller companies in our focus areas have less risk, as they are emergent, less expensive and do not have as much baggage as larger companies that have significant governance issues and have misplaced the trust of global investors. Some small companies are just coming out of a turnaround and others just went public a bit early. Many newly IPO'd companies that were over-funded in herd-like ways by venture capitalists are still value traps, as many do not have a sustainable business model or value proposition. The competition is also fierce as companies were often funded in theme based ways. For the companies that pass our screens, it is harder for them to find high quality investors and that is an opportunity for investors with risk tolerance and integrity. We do love our small capitalization investing but we are also spreading out our interests which is necessary to capitalize on many of the new opportunities. Technology, for example, is moving quickly so limiting our selections by market cap makes less sense. However, it also does not make sense to look only at large capitalization companies as there are many opportunities off the radar of most analysts and investors.
Crypto:
After more than one large bubble and subsequent sell off in blockchain and crypto, we feel right at home in this edge of chaos area which is full of promise but also full of risk, volatility, crazy speculation and even fraud. The skills of analyzing and investing in this volatile and risky area is similar to the small cap area, with upside for investors that can be substantial. Our natural intelligence investment principles work well in crypto and blockchain. We are adding blockchain and crypto investments to our mix. Certain areas within global blockchain and crypto have high potential to transform society for more health, vitality, fairness, and empowerment, but you must be realistic, grounded, opportunistic and always shining light into the dark crevices to succeed investing in this space. We take an honest and balanced view of the investment opportunities of this exiting, but volatile, and very risky area.
Blockchain technology is a distributed ledger technology architecture that enables new efficient, creative and empowering ways of organizing global economic activity through disintermediation of centralized power structures, building new systems of trust that are more organic and aligned with the wisdom of natural congruent systems.
Phoenix Investing Terms and Conditions
Phoenix Investing is highly integrated with our trends service: The Pythia System. If you are interested in accessing the Phoenix Investing Service, you should first sign up for The Pythia System. At this point, that is the main way you can access this service.
There is no set formula for how many new recommendations there are per month, but investors can expect around 20 to 30 new investment suggestions over the course of a year, as well as ongoing updates on the companies and projects we recommend. We also discuss help we feel the companies need to achieve their goals. That is both for risk management of these investment ideas as well as for brainstorming and collaborating to help the companies in ways that are of integrity.
We present our research and information in a variety of formats such as blogs, company videos with Q&A, expert webinars, educational materials, and visual mapping services.
There is a general community forum and separate discussion areas for members for each company, but there is no insider trading or boiler room tactics to push up stock prices allowed. Members must behave with integrity in these discussion areas, no bullying or gaslighting allowed.
Members can suggest stocks or crypto investment ideas in designated areas. We hope for members to recommend ideas in coherence with our natural intelligence principles, recognizing that there is no perfection here and the world is what it is. We feel that considering these principles will help members find integrated value in innovative ways, de-risk their investments, and build higher quality relationships with management teams of the public companies and crypto projects.
We hold webinars with Q&A to discuss our recommendations and member directed investment ideas.
We are not investment advisors, so investors are on their own. You need to make up your own mind. This is a high risk and volatile space, so perfect timing of buying and selling is challenging in this area. You should consider this area fun, mad money and not invest what you need to pay your mortgage.
Contact Us For More Information on Phoenix Investing and Get a Free Mini-Ebook Called "Permaculture and Investing"
Thank you for getting in touch!
One of our colleagues will get back to you shortly
About Us
Our investment principles core foundation are based on living, complex adaptive systems (CAS). Understanding the wisdom of CAS is essential for addressing global, complex, interconnected crises, as predominant economic principles do not consider human interaction with ecological systems at all.
Our living complex systems investing principles are inspired by the 12 permaculture principles, which are regenerative agriculture and sustainable living principles.
We use permaculture principles as a bridge to link ancient esoteric wisdom with advanced science, technology, and mathematics to explore, develop and finance exciting new innovations that lie at the "edge of chaos."
Ancient and timeless “shamanic wisdom” reminds us how to reconnect with the sacredness and interconnections of all life.
It is no coincidence that new scientific, technological, and mathematical advances such as chaos theory, nonlinear complex systems, quantum science, nonlinear mathematics and newly emergent blockchain technologies are also mirroring this theme of interconnectedness.
This awareness of how the sacred connects to advanced understanding of natural evolutionary intelligence is the essence of how we build and re-architect our global societies.
Our highly integrative and regenerative principles work across all industries.
Founder and CEO of Pythia Capital
I started Pythia Capital to educate investors in an experiential way regarding the interconnections of the health crisis across global society and our destruction and degradation of natural ecosystems, to enable capital to flow towards more congruent, win/win solutions to these complex problems. Over time, I realized the power of this natural, regenerative investment framework to identify and invest in the most creative, inspiring and dynamic entrepreneurs to address the most complex and critical problems in society.
I have more than 30 years professional experience, including investment research, portfolio management, sales, business development analysis, and board experience, working at such firms as Merck Pharmaceuticals, Healthdyne Perinatal Services, Kidder Peabody, Synetic (now WebMD), The Kaufmann Fund (now Federated Kaufmann), Citibank, and McKinley Capital. I was also the founder of independent research firm Sherbrook Capital Management. I am highly ethical, detail-oriented, strategic, intuitive, passionate and visionary. I am a maverick and a natural systems thinker.
Lynn Marie DePippo
Founder and CEO of Pythia Capital
Confidential © Pythia Capital 2024 All Rights Reserved
