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 - 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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