EXM manages over $250M in AUM with over 500 clients and + subscribers. Feel free to spread the word





The Other Menu




The current situation involving GameStop — where an organized group of internet strangers won a multibillion-dollar bet against hedge fund Melvin Capital and others — may feel like a brand new battle.  But it's really just one small part of a "War on Wall Street" that has been brewing for a decade.



For years, everyday people have been condescendingly told to stick to passive ETFs, while the elite have their pick of the creme de la creme of investment vehicles.



It's as if the everyday class of citizens gets one menu and another privileged class gets a different menu.  Many of these citizens weren't even aware that there was an entirely other menu…until now. Leveling this playing field for everyday investors is our driving force at EXM Capital.




So when the world of elite Wall Street is losing its wits about them, that's when EXM Capital strikes opportunistically on behalf of our  clients.



Here's what we're doing.

Most investors are completely ignoring the 2nd order consequences of the GameStop and AMC short squeezes. Which stocks are now way overvalued or undervalued because of these extreme moves? 

We've seen great companies have their stock prices bid up to outrageous prices because of these short squeezes. These stocks, while wonderful businesses, are now sells. 

Conversely, we've seen some crown jewel assets sell off hard because the hedge funds in trouble have to sell even their highest-quality longs to cover the margin calls on their bleeding shorts. These fallen angels are now screaming buys.



We'll be announcing our top new long position shortly, a fallen angel that's gotten thrown out with the bath water. Similarly, we're selling a company of ours that has more than doubled in the last few months because it's more than exceeded our price target, years sooner than we anticipated.

Wall Street is frantic right now; EXM Capital is staying cool. This is Main Street's time to shine.





Missed it? Here's the situation in 60 seconds



The talk of the last few weeks has been the GameStop short squeeze. If you're not familiar: GameStop sells video games at the mall, but most people no longer buy video games at the mall today. Hence it has been a favorite "short" of many hedge funds.


Unfamiliar with short selling? Axios and Matt Levine explained the topic quite nicely as it relates to GameStop. TLDR: when a highly shorted stock begins to rise for whatever reason, short sellers give up and buy the stock to surrender, and their buying pushes the stock up more. This is "short squeeze 101," and it is how GameStop's stock went parabolic in recent days.

What started the squeeze? Retail traders. From Reddit's r/wallstreebets message board to Discord's chat rooms and beyond, retail investors who'd long felt disenfranchised by Wall Street's hedge fund kingpins mobilized together to take them down. By buying up the most widely shorted Wall Street stocks, they forced squeezes (and immense financial pain) across old Wall Street



Stepping back, this was clearly an uprising of Main Street against Wall Street -- the "little person" against the hedge fund kingpin, in perhaps just one battle in the much larger War on Wall Street.






EXM's business




Right now, we're experiencing record growth in assets and clients flocking to EXM Capital. From our investment strategies' returns, to our educational content's engagement rates, to our client referral and retention rates, we're firing on all cylinders and starting a movement. Our business has never been stronger.

We became profitable in 2020 and didn't lay off a single employee despite COVID. We're now planning to give out over 19 jobs this year to new EXM Capital employees across investment management, engineering, operations, and more. We are doubling down on diversifying our investment strategies and building even more educational content. 


Operationally, we are all systems go. We know it's important your capital is housed in a stable place, especially when market volatility strikes. We have never experienced halted trading in a single stock, never exposed our clients to the negative effects of margin calls or short squeezes, and never had balance sheet issues. We are well-capitalized and ready to help Main Street continue to take on Wall Street. We're prepared for the long haul. 





Weekend reads



How WSB Pushed Gamestop Shares to the Moon (10 min read). Gamestop started taking off in recent weeks, but its backstory has been brewing since 2019.  A comprehensive look at the complete saga behind the surge.   



Why the iPhone Forever Changed Photography (11 min read). How the introduction of smartphones marked the introduction of a new visual language.



How to Read More (21 min read). 7 tactical tips around how to achieve the new years' resolution you've never quite fully nailed.






A detour



The best way out is always through."



Robert Frost