Spencer Cibelli, Investment Associate at Robotti & Company, stops by to discuss Haypp Group; the world’s largest online retailer of nicotine pouches and traditional snus products. The nicotine pouch category is, as Mugatu would say, "So hot right now." Spencer details Haypp's unique characteristics, benefit to customers, and value offered to suppliers. This business has an interesting niche. And may just be an unlikely "Win-Win-Win" example. Enjoy the episode!

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Takeaways

Haypp is the world's largest online retailer of nicotine pouches.

The company has a unique data insights business that contributes to its revenue.

Consumer behavior in the nicotine pouch market shows a willingness to switch brands.

Regulatory challenges are significant but manageable for Hape.

Pricing strategies allow Haypp to offer lower prices than traditional retailers.

The growth potential in the nicotine pouch market is substantial, especially in the US.

Management's long-term vision is focused on market share growth.

Valuation metrics suggest Haypp is an attractive investment opportunity.

The online penetration of nicotine products is still low, indicating room for growth.

Haypp's relationships with manufacturers are symbiotic and beneficial for both parties.

Jeffrey Collins, Managing Partner of Cloverlay, stops by to discuss how Cloverlay builds private portfolios to offer clients uncorrelated returns. In this conversation, Jeff explains how Cloverlay provides access to private assets that are often overlooked by traditional investors, emphasizing the importance of correlation in portfolio management. The discussion covers various investment opportunities, including sports rights, telecom spectrum auctions, dark fiber, and intellectual property. Jeff shares insights on navigating regulatory changes and lessons learned from past investments, ultimately highlighting the future outlook for investment strategies in a rapidly evolving market.

Takeaways

Cloverlay specializes in esoteric niche private assets.

The firm manages $1.6 billion in assets.

Investments are designed to be uncorrelated and predictable.

Understanding correlations is key to portfolio management.

Investing in sports rights was a unique opportunity in 2020.

Telecom spectrum auctions favor smaller investors.

Dark fiber investments are critical for data centers.

Regulatory changes can create new investment opportunities.

Past investments provide valuable lessons for future strategies.

Cloverlay aims to be a resource for institutional investors.

Jeff's Bio

Jeff serves as Managing Partner of Cloverlay and is a member of the Firm’s Investment Committee and Board of Directors. Prior to founding Cloverlay, Jeff was a Managing Director with Morgan Stanley Alternative Investment Partners (AIP), a division of Morgan Stanley’s institutional asset management business. While at AIP, Jeff was a member of the Executive and Business Committees and served on AIP’s Private Markets Investment Committee as a Portfolio Manager responsible for leading primary fund, co-investment and secondary transactions focused on special situations globally and North American buyouts. Prior to AIP, Jeff advised and traded equity options and futures with U.S. hedge funds in Morgan Stanley’s Equity Derivatives Group in New York. Prior to Morgan Stanley, Jeff was on the investment team at Petra Capital Partners, where he was responsible for screening, researching, structuring and monitoring private equity investments in health care and information services companies. Prior to Petra Capital, Jeff was an investment banker at Robertson Stephens, where he executed a variety of public and private equity, debt and convertible offerings along with mergers and acquisitions in financial services, health care, and business services.

Ryan Dobratz stops by to discuss various aspects of the real estate market, primarily focusing on Freddie Mac and Fannie Mae. The discussion touches on the political implications surrounding Freddie and Fannie, as well as trends in the residential housing market and manufactured housing policies. Weaved into the conversation is interest rates, CPI, and the impact of AI on industrial real estate.

Takeaways

• The real estate market is currently experiencing a divergence in performance across different sectors.
• Interest rates and CPI are critical factors influencing the real estate market.
• AI is expected to drive efficiencies in industrial real estate logistics.
• Freddie and Fannie are facing political and market pressures as they consider exiting conservatorship.
• Preferred shares in Freddie and Fannie present a compelling investment opportunity despite capped returns.
• The residential housing market is showing signs of recovery, particularly in new home construction.
• Manufactured housing is gaining attention due to affordability concerns and potential policy changes.
• The timber market is facing challenges but has potential upside due to supply constraints.
• Investors should be cautious about the political landscape affecting Freddie and Fannie.
• Overall, the real estate sector offers various investment opportunities, but careful selection is necessary.