I've divested from Pinnacle (ASX:PNI) and invested in Microequities Asset Management (ASX:MAM). While there's nothing inherently wrong with Pinnacle, I dont want excessive exposure to fund managers. I believe MAM offers a superior risk-reward balance. Currently, Pinnacle trades at a 23x PE with a 3.9% yield, whereas MAM stands at 12x PE with a 6% yield, based on suppressed earnings. Assuming that Funds Under Management (FUM) and client numbers remain consistent, as they did in the last fiscal year, I'm optimistic that we're nearing a bottom for the share price. Notably, MAM did not secure significant performance fees in the last fiscal year. However, should there be an uptick in the performance of small and microcaps, MAM could witness a substantial surge in earnings due to performance fees. This could lead to a decrease in its PE multiple, while significantly boosting its yield. I'm impressed with Carlos's consistent performance and resonate with his investment approach and philosophy.

What to keep an eye on is the FUM and client numbers. If these start to drop off then I will reassess thesis. 

This could also be a pain trade, who knows what will happen with the market in the short term. But at some point the small and microcaps will have a run. I believe the current risk-reward scenario favors my position, but only time will confirm this.