We did a study of this strategy and posted it on The Broken Leg. The strategy provides some of the best returns available to deep value investors but reducing your portfolio to a manageable number of positions, 20 in our judgement, significantly eroded returns.

https://www.brokenleginvesting.com/negative-enterprise-value/

Diversification seems to be strongly tied to great returns.

But, you can build a more concentrated 20 stock negative enterprise portfolio and maintain returns if you focus on the negative enterprise value stocks with additional criteria. It's too much to type on my phone but you can read the writeup.

They are very investable as well - liquidity is not an issue until you're managing tens of millions.

Evan