Planet Microcap Podcast | Microcap Investing Strategies

My guest on the show today is Paul Cerro, Founder and CIO of Cedar Grove Capital Management, and today’s conversation is all about fallen angels — once high-profile companies that collapse due to poor execution, leverage, or macro pressure, but can become some of the most mispriced and compelling opportunities in the market. Paul breaks down the anatomy of a fallen angel, why these setups create structural market inefficiencies — especially in illiquid micro-caps — and how forced selling, headline-driven reactions, and information scarcity can disconnect price from fundamentals. Most importantly, he explains the key dividing line between a genuine opportunity and a value trap: management credibility. In micro-caps, direct access to leadership gives investors a rare ability to test their assumptions and validate the story before making a high-conviction bet. We also zoom out to the macro landscape, where Paul sees 2026 shaping up as a major buyout year for fallen companies. With private equity sitting on rec