In this quarter’s systematic rebalance we are trimming two positions to take gains in one of our best performing stocks while limiting our exposure to a stock that’s momentum seems to be stalling. We are also rotating out of a name that has been a detractor to the strategy to increase our exposure in a few positions with better prospects for future success. In this piece we:
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Introduce our new position in Ingevity Corporation (NGVT)
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Provide rationale for adding to our positions in EZCORP, Inc (EZPW) and Great Lakes Dredge & Dock Corporation (GLDD)
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Detail our decision to trim our position in Sun Country Airlines (SNCY)
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Explain our decision to sell out of Proto Labs (PRLB) and FreightCar America Inc (RAIL) for better opportunities
A new position in this month’s rebalance, Ingevity Corporation (NGVT) produces specialty chemicals and high-performance carbon materials that are in high demand and largely renewably sourced. In December 2025, NGVT completed a review of its business portfolio and announced plans to narrow its focus to two newly formed units. First, Performance Materials is a high-margin business with modest growth prospects which will employ activated carbon technologies to manufacture products used in the automotive, food and beverage, and water treatment industries. Second, Pavement Technologies constitutes a faster growing business which produces highly engineered asphalt pavement. At the same time, NGVT plans to sell its Advanced Polymer Technologies and Road Markings businesses for aggregate proceeds of around $1 billion. NGVT plans to use these funds for strategic growth initiatives, debt reduction, and share buybacks.
L2 Micro Cap Trade Commentary Rebalance – February Q1 2026
Table of contents
When
February 15, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
ASSET CLASS COMMENTS:
In this quarter’s systematic rebalance we are trimming two positions to take gains in one of our best performing stocks while limiting our exposure to a stock that’s momentum seems to be stalling. We are also rotating out of a name that has been a detractor to the strategy to increase our exposure in a few positions with better prospects for future success. In this piece we:
Introduce our new position in Ingevity Corporation (NGVT)
Provide rationale for adding to our positions in EZCORP, Inc (EZPW) and Great Lakes Dredge & Dock Corporation (GLDD)
Detail our decision to trim our position in Sun Country Airlines (SNCY)
Explain our decision to sell out of Proto Labs (PRLB) and FreightCar America Inc (RAIL) for better opportunities
SELECT NOTES ON NEW BUYS & SELLS:
A new position in this month’s rebalance, Ingevity Corporation (NGVT) produces specialty chemicals and high-performance carbon materials that are in high demand and largely renewably sourced. In December 2025, NGVT completed a review of its business portfolio and announced plans to narrow its focus to two newly formed units. First, Performance Materials is a high-margin business with modest growth prospects which will employ activated carbon technologies to manufacture products used in the automotive, food and beverage, and water treatment industries. Second, Pavement Technologies constitutes a faster growing business which produces highly engineered asphalt pavement. At the same time, NGVT plans to sell its Advanced Polymer Technologies and Road Markings businesses for aggregate proceeds of around $1 billion. NGVT plans to use these funds for strategic growth initiatives, debt reduction, and share buybacks.