Club Conversation with Dylan Marrello, Asymmetric Bets in Hated Industries

Dylan Marello is CIO of Marello Capital, a fund he launched after a career as a corporate litigator. He runs a concentrated, long-only portfolio of roughly 12 to 15 names, market-cap agnostic, but skewed toward asymmetric setups in hated or overlooked sectors.

This discussion took place live on May 6th, 2026, on the MicroCapClub Community. Join MicroCapClub and unlock the ability to listen and participate live in these discussions - https://microcapclub.com/#join 

In this episode, Dylan discusses how his legal background shapes the way he writes and structures investment theses, why he sizes his ideas between 5 and 10 percent, and how he thinks about capital cycles in industries like offshore drilling, cinemas, and cannabis. He also walks through two of his largest positions: Entravision Communications, which moved sharply during the recording on a strong print from its Smadex ad-tech segment, and MIAX, the options exchange he frames as a royalty on growing derivatives volumes, including its stake in Robinhood's prediction markets venture.

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Chapters

00:00 Introduction to Dylan Marello and His Investment Philosophy

04:24 The Journey of Starting Marello Capital

07:56 Investment Strategy and Management Fees

10:47 The Impact of Legal Background on Investment Analysis

13:46 Writing Investment Theses and the Role of AI

17:01 Case Study: EVC and Its Growth Potential

25:57 Understanding Hated Industries and Investment Opportunities

35:59 Market Sentiment and Its Impact

37:06 Capital Cycles and Industry Restructuring

38:51 Opportunities Amidst Market Negativity

40:42 The Resurgence of Movie Theaters

42:06 Supply and Demand Dynamics in Offshore Drilling

44:31 Patience in Investing: The Waiting Game

47:38 MIAX: A High-Quality Business Overview

48:41 The Growth of Derivatives and Options Trading

53:25 MIAX's Unique Market Position

58:14 Future Prospects and Strategic Partnerships

01:02:59 Valuation and Market Potential of MIAX

01:08:46 Legal Considerations and Insider Confidence

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