TIP750: Generating Alpha, Digital Payments, & AI w/ Deiya Pernas

What It Covers

Deiya Pernas explains how his firm achieved 27.1% annualized returns since 2017 versus 14.7% for the S&P 500 through variant predictions, portfolio management discipline, and identifying share gainers in digital payments and AI-enabled manufacturing sectors.

Key Questions Answered

• •Prediction Framework: Past financial trends show no correlation with future performance across companies. Instead of extrapolating historical revenue or earnings growth, analyze whether the business motor strengthening through improving customer value delivery, competitive positioning, and operational capabilities independent of current financials.
• •Portfolio Sizing: Apply Kelly Criterion principles where positions with 100% downside potential require smaller sizing regardless of upside. Maintain 15% cash reserves to deploy tactically during market dislocations. Initial position sizing matters more than averaging up in concentrated portfolios with five to fifteen percent core holdings.
• •Working Capital Analysis: Monitor changes in days sales outstanding and supplier payment terms as early warning signals. Small cap growth companies need negative working capital or improving trends to finance expansion internally. Deteriorating working capital combined with debt accumulation creates liquidity crises that destroy shareholder value.
• •Remittance Opportunity: Remitly trades under three times revenue with 40% growth despite operating in an $800 billion market growing six percent annually. Digital native platforms capture share from Western Union's $120 billion payment volume as cash-to-cash transfers migrate digital. Trust and brand matter more than price in cross-border money movement.