Alejandro Yela

I run a holding company investing €100M+ in private assets & listed small caps since 2014 | Unfiltered research for serious investors | Deep dives 👇

[Alejandro Yela @YelaHRMT]

We are building a permanent home for small, essential businesses in Northern Spain. No flipping. No aggressive financial engineering. We buy to hold forever.

Our acquisition framework is simple:
- Targets. Sub-€1m EBITDA, steady cash flows, and pristine balance sheets.
- Sellers. (1) Business owners looking to retire who want to protect their legacy and their people. or (2) Talented, energetic young individuals running high quality assets, and looking to join a project larger than themselves.

We don't pay premium tech multiples. But we do guarantee permanent home for your life's work.

Our long term plan is to compound quietly, scale operations, and target a UK public listing (reverse IPO) in 15 years once the cost of listing is efficient.

Follow along for the daily diary of Hermit Ventures Ltd., a holding company executing micro-deals in real time.

[Alejandro Yela @YelaHRMT]

@darshitpatel84 Amazing how fast everyone goes from "small caps are dead" to "small caps forever" (and viceversa).

Dead cat bounce, or are we actually seeing real earnings? What’s the play here?

[Alejandro Yela @YelaHRMT]

@Barchart Why exactly is volume important here? Speculation?

[Alejandro Yela @YelaHRMT]

@LinaSeiche Stawwwwp Lina. Why are your videos some damn good. Thank you for taking the time to cover what I believe to be a massive issue and that is the symbols of nationalism

[Alejandro Yela @YelaHRMT]

I personally know a few of the people involved, and that’s only one version of the story.

The one I know is that about 6m shares (6%) of the shares Arnault bought came out of one of the shadiest moves I’ve ever seen from a Swiss manager.

He effectively bought stolen shares. That’s why he faced such fierce opposition… and why legal proceedings in the matter are still dragging on to this day.

[Alejandro Yela @YelaHRMT]

@AlexTheo88 To your point, they're very local. We essentially buy tiny monopolies with around 20% EBIT margins. No debt, and no tariff BS, but they require a specialist to run them.

[Alejandro Yela @YelaHRMT]

Small-Cap Peeps Playbook:

- Buy from retiring founders with no succession plans, de-risking the entry with price.
- Back young brilliant operators who just need scale to drive the upside.
- Align cash and equity incentives heavily with local and division free cash flow.
- Keep the parent company corporate overhead as close to zero as possible.

What am I missing?

[Alejandro Yela @YelaHRMT]

How to lose 99% of your hard-earned $$$:

Buy hyped stocks based on the vibes of Twitter analysts without reading a single financial report.

Oh yeah... everyone is an analyst/trader/advisor/expert/market wizard nowadays

[Alejandro Yela @YelaHRMT]

I’ve recently been looking at O&G refineries. Crack spread margins are at all-time highs after combined supply drops in Russia and Iran. Keep in mind, the US hasn't built a major new refinery since the 1970s.

Also, be careful with distributions. If you want a prime example of what not to do, look at Icahn Enterprises.

[Alejandro Yela @YelaHRMT]

It’s a beautiful day to look outside and remember: your emotional panic-selling is basically a tax-deductible donation to a hedge fund manager’s yacht fund.

Thank you for your service.

[Alejandro Yela @YelaHRMT]

@sidecarcap Roy Mann and Eran Zinman from Monday ;D

[Alejandro Yela @YelaHRMT]

@MikeFritzell Do you have an FnGuide write up?

[Alejandro Yela @YelaHRMT]

Update: My compliance guy just read the first paragraph and is currently hyperventilating. Nobody tell him about the small-caps part pls

[Alejandro Yela @YelaHRMT]

99% of people are cowards who deserve to stay broke.

I didn’t just mortgage my house… I took out high-interest hard money loans, drained my parents' retirement accounts, and threw every single cent on Spain to win the World Cup.

Tomorrow, I’m closing on 5 new properties cash.

If you aren’t willing to risk literal homelessness for generational wealth, you simply lack alpha.

...Just kidding. If you actually gamble on sports, you are financially illiterate. Stick to high quality stocks guys 😊

But man, watching the absolute chaos of the tournament was the best entertainment of the decade. (Minus the arbitration part)

[Alejandro Yela @YelaHRMT]

Image you had one already how would you go about optimizing the subscription model? Is it all about identity and premium looks or are there any major impactful factors that I’m missing?

Also, if you had a (regular) restaurant how would you go about converting it into this subscription model?

Can you help me @AlwaysHungry ?

[Alejandro Yela @YelaHRMT]

Investing is freaking hard work, but you can make it easier by playing on your home turf.

It's all about Circle of Competence.

We're exploring real companies in 4 specific niches right now:
- High-end coffee distribution
- High-end musical instrument repair and distribution
- B2B food and beverage distribution
- Consolidated small elderly care facilities

Full write-up on these 4 niches pinned on our Substack. Link in the bio.

[Alejandro Yela @YelaHRMT]

Q&A time...

"What industries do you see booming in the next 10 years?"

"Space. Drones. Quantum. Robots. Energy. Grid infra. Wendy's."

Can't wait for the autonomous, quantum-powered Frosty machine.

[Alejandro Yela @YelaHRMT]

For me, the best part is actually the people component. Meeting individuals who are wiser, smarter, or just further ahead than me inspires me in a way that’s difficult to describe.

Sometimes that happens in the form of a brilliant colleague like yourself, but most times, it’s meeting an operator out in the field who just completely wows me.

[Alejandro Yela @YelaHRMT]

@hkuppy Love the transparency here, Kuppy!

Volatility is just the price of admission for long-term meaningful returns.

11.3% YTD is still a great setup heading into the second half of the year. Diving into the text now! Thank you so much for sharing

[Alejandro Yela @YelaHRMT]

@mattkiu @hkuppy Yangarra is mostly gas a little of heavy oil. In other words basically all gas.

[Alejandro Yela @YelaHRMT]

@agnostoxxx I actually got that book recommended to me just like a week ago. Is it really that good, or is it just hype?