Munib Islam - Creating Long-Term Value

A year and a half into the pandemic, a lot has changed in the investment landscape.   Individual investors have been empowered, economies reacted in unpredictable ways, and we still have no clear idea of what is to come. At the same time, when we take a retrospective look, we can find parallels between the trends, behaviors, and reactions of today and events in the past. Today we’re joined by one of the great conversationalists in the community, Chris Davis, to share his perspective on investing in a time of COVID and his outlook for the future.   Chris Davis is the Chairman of Davis Advisors, where he oversees approximately $30 billion of client assets for both individuals and institutions worldwide. Chris joined Davis Advisors in 1989 as a financial analyst and has been a portfolio manager of the firm's flagship fund, the Davis New York Venture Fund since 1995. That fund has a very long history, having been founded more than a half-century ago. An investment of $10,000 at the fund’s inception would be worth $3.6 million as of June 30, 2021, versus 1.9 million for the S&P 500. Chris studied Moral Philosophy and Practical Theology at the University of St. Andrews in Scotland and is on the board of directors at the Coca Cola Company and Graham Holdings.   In this episode, Chris, Tano, and I discuss how the pandemic compares to past crises, Davis Advisors’ approach to triage as we entered the pandemic, why the banking industry offers more certainty to investors than other financials, the impact of low interest rates, the advantages US companies hold have over European companies, and so much more!   Key Topics:   The two types of crises Chris has seen over his career (1:53) COVID in the context of past crises (3:48) Davis Advisors’ approach to analyzing the long-term impact of COVID (7:48) How Davis assessed key companies and industries as we entered the pandemic (9:38) Structural changes in the banking industry in the past decade (13:39) Why investments in banking come with a higher degree of certainty (15:18) The inherent uncertainty associated with insurers (17:21) Long-term dangers of the aggressive consumer bailout (19:36) How Chris saw history repeating itself in the past year (21:30) The biggest change in market structure (23:13) What active managers need to understand about dispersion (26:05) Factors that feed dispersion between Europe and the US (30:10) How Chris views his European investments (33:31) Two components of valuing a business (37:04) Amazon as a modern-day Standard Oil (39:14) Why successor CEOs should focus on preservation and protection (43:04) The impact of low interest rates (46:24) How banks have performed in the face of a significant headwind (49:03) The high adaptability shown by banks (50:36) Key differences between US and international banks (53:11) The numerous disruptors that the banking system has absorbed (56:16) How inertia and regulation protect banks from disruption (58:41) Chris’ thoughts on the growth of the payments industry (1:00:27) Viewing Bitcoin as a digital version of gold (1:04:29) Why Chris’ opinion on Bitcoin has shifted (1:07:35) Chris’ big takeaway from 2020/2021 (1:10:08) The impact of China becoming the largest consumer economy (1:11:15) Why state and federal government finances keep Chris up at night (1:13:16) Chris’ top book recommendations (1:15:10) And much more!   Mentioned in this Episode:   Davis Advisors Davis New York Venture Fund Walter Isaacson’s Book | The Code Breaker: Jennifer Doudna, Gene Editing, and the Future of the Human Race Morgan Housel’s Book | The Psychology of Money John Tierney & Roy F. Baumeister’s Book | The Power of Bad: How the Negativity Effect Rules Us and How We Can Rule It Benjamin Labatut’s Book | When We Cease to Understand the World   Thanks for Listening!   Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu.   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

1 Loka 20211h 16min

Since our first podcast in the spring of 2019, we’ve built a wonderful audience around the world, and now have a terrific collection of interviews with remarkable investors.   I have loved the opportunity to host these interviews myself but from the very beginning, I felt that you would benefit from having another voice to challenge the guests and bring a different point of view to the podcast. That time has finally come.   As we start this new season, I couldn’t think of a better person to join me as co-host than Michael Mauboussin, Head of Consilient Research at Counterpoint Global. Michael is a colleague, a friend, and someone I admire enormously for his passion and ability to match academic research with the practical considerations of investing.   On our first episode together we’re delighted to welcome Chase Sheridan and Will Pan of one of the great names in value investing, Ruane, Cunniff & Goldfarb.    Chase Sheridan joined Ruane, Cunniff & Goldfarb in June 2006 upon his graduation from Columbia Business School. Prior to attending Columbia, Chase was a senior vice president at Citadel Investment Group, a hedge fund based in Chicago and a partner at Q.E.D. Capital, an arbitrage firm based in Chicago. After interning with the firm in 2009, Will Pan was set on a career path with Ruane, Cunniff & Goldfarb. He joined the firm in 2010 after graduating from Harvard College.    On this episode, Chase, Will, Michael, and I discuss Ruane, Cunniff & Goldfarb’s history and connection to Warren Buffett, why the Hyperion found was started, the team dynamic between Chase and Will as co-managers of the fund, their approach to idea sourcing and portfolio construction, and so much more!   Key Topics:   The history of Ruane, Cunniff & Goldfarb (RCG) (3:40) Chase’s unusual path to RCG (6:37) How Chase became interested in value investing (8:36) Will’s journey to RCG (10:18) The core of the RCG investment approach (13:52) Hyperion’s maniacal focus on the intrinsic earnings power of a business (15:59) The relationship between RCG and Hyperion (17:26) The main difference between Hyperion and Sequoia (18:15) Why the RCG team considers themselves analysts first (19:45) The founding of Hyperion (21:30) Chase and Will’s co-manager dynamic (23:18) Benefits of team management of a fund (25:30) Analyzing your trade ledger and thesis memos (26:52) RCG’s writing and research culture (28:25) Hyperion’s ideal investment characteristics (30:31) Idea sourcing at Hyperion (32:36) How Hyperion tackles due diligence (35:04) Focusing on intrinsic earnings power (38:56) The art of portfolio construction (41:46) Running scenarios on potential investments (44:05) The problem with portfolio managers emulating their idols (45:11) Understanding roll-ups (47:15) Why the vertical software industry is well-suited to consolidation (49:27) Where Constellation Software focuses on making their return (51:59) Constellation Software’s framework for defensive acquisitions (54:15) What you need to know about Constellation Software (56:49) Mark Leonard’s unique approach to acquisitions (58:53) An overview of Eurofins (1:01:17) Why consolidation makes sense for the testing industry (1:03:13) Gilles Martin’s playbook for acquisitions (1:04:15) Why Hyperion became interested in Eurofins (1:07:42) The advantages of Eurofins having a founder CEO (1:08:56) The importance of leverage to Eurofins’ growth (1:10:24) Will’s recommended reading (1:12:43) What noise means for investors (1:14:14) Chase’s recommended reading (1:15:15) And much more!   Mentioned in this Episode:   Ruane, Cunniff & Goldfarb Constellation Software Eurofins Scientific Daniel Kahneman, Olivier Sibony & Cass R. Sunstein’s Book | Noise: A Flaw in Human Judgment Steve Brusatte’s Book | The Rise and Fall of the Dinosaurs: A New History of a Lost World Walter Isaacson’s Book | The Code Breaker: Jennifer Doudna, Gene Editing, and the Future of the Human Race Jeff Hawkins’ Book | A Thousand Brains: A New Theory of Intelligence Edgar Wachenheim’s Book | Common Stocks and Common Sense: The Strategies, Analyses, Decisions, and Emotions of a Particularly Successful Value Investor Jordan Ellenberg’s Book | How Not to Be Wrong: The Power of Mathematical Thinking Chip Heath & Dan Heath’s Book | Switch: How to Change Things When Change Is Hard Jeff Bezos’ Book | Invent and Wander: The Collected Writings of Jeff Bezos Mark Leonard’s President Letters David Sklansky’s Book | Getting the Best of It Bryce Carlson’s Book | Blackjack for Blood: The Card-Counters' Bible and Complete Winning Guide Ralph Vince’s Book | The Mathematics of Money Management: Risk Analysis Techniques for Traders   Thanks for Listening!   Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu.   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

17 Syys 20211h 17min

Listeners of this podcast will know that I believe one of the most dynamic areas of investing is that of activism. In the true spirit of value investing, there’s a crop of activist investors who are now embracing their role in engaging management in various ways, whether to improve operational performance, address governance issues, or simply to encourage better capital allocation and distribution policies.   Today we’re exploring this topic further with Anne-Sophie d’Andlau. Anne-Sophie co-founded CIAM with her partner, Catherine Berjal, in 2010. Since then they have led several groundbreaking activist campaigns in Europe, capturing the attention of the financial press everywhere.   Anne-Sophie is a Partner and Deputy CEO at CIAM and she is responsible for the fund’s strategy and development. CIAM, which stands for Charity Investment Asset Management, donates 25% of its annual performance fees to charities dedicated to improving children's health and education across the world. Before founding CIAM, Anne-Sophie worked at Systeia Capital Management from 2001 to 2008, first as Head of Research for the Event Driven and M&A strategies, then taking on a portfolio management role from 2003 to 2008.   On this episode, Anne-Sophie and I talk about how she started her career in finance, how CIAM evolved into active investment, why Europe is well-suited for a new wave of activist investors, CIAM’s approach to idea sourcing, analysis, and risk management, what Anne-Sophie hopes to see for the future of activism in Europe, and so much more!   Key Topics: The story of the first activist investor, Ben Graham (1:45) Introducing Anne-Sophie (4:24) How Anne-Sophie’s interest in finance led to a front-row seat to late 90s IPOs (5:43) Participating in the launch of the first hedge fund in France (7:05) Why CIAM evolved into activism (9:50) Factors driving the new wave of activism in Europe (11:28) Moving away from the negative connotation of activism (13:21) The lack of recognition of activism as an asset class in Europe (15:23) Anne-Sophie’s hope for change in the mindset of European institutional investors (17:09) CIAM’s approach to consulting with management and shareholders (19:08) Understanding why there’s so much room for activism in Europe (21:01) Similarities and differences between European markets (22:00) Why CIAM chose the countries they operate within (23:32) The benefits of a UK office (25:13) CIAM’s decision against actively investing in Italy (26:39) CIAM’s method of idea sourcing (27:41) Examining Euro Disney as a case study of what good activism can do (28:38) Initial problems identified by CIAM at Euro Disney (31:51) CIAM’s campaigns as minority shareholders at Euro Disney (33:31) CIAM’s approach to information collection (35:46) The non-activist side of CIAM (36:56) How CIAM balances internal skillsets with outside advice and experts (38:28) Why AGM season is a key moment for activist investors (40:46) Investor relationships with proxy advisors in Europe (41:43) CIAM’s risk management strategy (42:38) Looking to the future of activism in Europe (45:01) How activism creates positive change (47:11) And much more!   Mentioned in this Episode: CIAM   Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

9 Huhti 202149min

One of our goals with this podcast is to get to know new markets, new situations, and new investors who bring dynamism to all markets. A great example of this is the new generation of activist investors in Europe. Students of mine have heard me say for some time that Europe has been ripe for activism. I believe that with structural changes in European capital markets, combined with the state of global markets, a new wave of activism is happening and will be quite transformative. My guests today, Florian Schuhbauer and Klaus Roehrig of Active Ownership Corporation (AOC), are one of the most exciting names in the current European activist scene. They have been making headlines with groundbreaking campaigns and change they are bringing to European Capital Markets. AOC has built a remarkable record over the last five years, beating the Europe ex UK Small Cap benchmark by a factor of almost three since inception. AOC is an independent, partner-managed investment company acquiring significant minority stakes in publicly listed, undervalued small- and mid-size companies in German-speaking countries and Scandinavia. AOC follows an active ownership approach and fosters value creation through operational, strategic, and structural improvements. Florian Schuhbauer is a founding partner of AOC and has more than 20 years of relevant experience. Prior to establishing AOC, Florian was a Partner at Triton Partners where he built up the Public Equity practice. Klaus Roehrig is also a founding partner of AOC and has more than 20 years of relevant investing experience. Before founding AOC, he was at Elliott Associates, responsible for the funds’ investments in the German-speaking countries. On this episode, Florian, Klaus, and I discuss their early careers and the unusual paths they took before founding AOC, the mentorship they received along the way, the key pillars of their investment strategy, AOC’s holistic, team approach to their companies, how they manage liquidity differently from other firms, and so much more! Key Topics: Florian’s early career in banking (3:46) Learning experiences from Florian’s SaaS startup (4:24) How Florian found himself in a 9 to 5 position he didn’t want (5:45) Why Florian made the move to private equity (7:17) Applying a private equity value creation model to public equity (8:32) Klaus’ early interest in business and business builders (10:14) The accidental advertising agency (11:03) How Klaus became interested in investment banking (12:44) Why Klaus developed a focus on risk early in his career (14:25) Klaus’ move to the hedge fund industry (16:08) Mentorship from great investors at Elliott Management Corporation (18:26) Florian and Klaus’ decision to start AOC (20:42) The two pillars of AOC’s investment strategy (22:10) Using an activist approach as a tactic rather than their strategy (23:44) The huge agency issue caused by a lack of active owners (25:33) How an underdeveloped shareholder culture created opportunities for AOC (27:18) Working with management teams for investment ideas (30:23) Idea sourcing from AOC’s library of investment cases (32:01) The types of companies AOC considers for investing (33:12) Building a broad knowledge base as a generalist (34:54) Why AOC values a team approach with their companies (37:34) Union and employee representation on the board (39:34) AOC’s holistic approach to their investments (42:27) How AOC became interested in STADA (43:37) Why board seats were crucial for AOC’s strategy for STADA (48:13) The proxy fight that erupted from a broken contract with STADA (50:04) Internal issues between STRADA’s board members (51:24) Bringing the supervisory board and shareholders into alignment (53:31) Starting from scratch with STADA’s board (55:41) Breaking new ground as dissident shareholders in Germany (57:17) Taking STADA private within 18 months (1:00:39) AOC’s unique approach to liquidity (1:03:45) Managing liquidity on the asset side (1:07:50) Time arbitrage opportunities with locked-up capital (1:08:30) Florian’s perspective on the next five years for AOC (1:11:23) Klaus’ view on the next five years for AOC (1:14:58) Opportunities for activism in Europe (1:16:29) And much more!   Mentioned in this Episode: Active Ownership Corporation Value Investing with Legends | Jan Hummel – The Rare Advantage of Real-World Experience   Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu.   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

26 Maalis 20211h 18min

The value investing in legends class is one of the highlights of the Heilbrunn year. It’s filled with special moments, including the annual visit from our guest today, Elizabeth Lilly. Beth embodies the principles and practices of value investing like very few people do. She makes investing look easy and her lecture always captures the pure essence of value investing. Elizabeth Lilly is Chief Investment Officer and Executive Vice President for The Pohlad Companies, LLC where she oversees the public and private investments for the Pohlad family. Beth began her career with Goldman Sachs in 1985 and shortly after moved to Greenwich, Connecticut to work as an analyst in Fund American Companies in 1988. In 1997, she co-founded Woodland Partners in Minneapolis which focused on investing in small capitalization equities. In 2002, Woodland Partners was acquired by GAMCO Investors where she went on to serve as a Senior Vice President and Portfolio Manager of the $1.4 billion Teton Westwood Mighty Mites Fund and as a member of the value portfolio management team. In 2017, Beth founded Crocus Hill Partners to focus on investments in small and micro capitalization equities but a year later she left to join the investment arm of the Pohlad family in an opportunity that was impossible to pass on. Beth is a graduate of Hobart/William Smith College and a dear friend of the Heilbrunn Center.  On this episode, Elizabeth and I discuss how her passion for investing was ignited from in childhood, the many value investing legends she has had the opportunity to learn from during her career, how she founded her firm before ultimately landing her dream job at Pohland Companies, her approaches to idea sourcing and risk management, and so much more!   Key Topics: How Beth’s mother and grandparents shaped her passion for investing (3:29) Why Beth attributes her research job at Goldman to pure luck (5:21) Leaving Goldman Sachs (7:58) The legendary Bob Rose (9:40) The first turning point in Beth’s career (11:16) Beth’s phenomenal experience at Fund American (12:54) Talking investing with Warren Buffett (14:22) The fundamentals of investing (16:12) Why Beth has a notebook on her at all times (17:38) The key elements of a good value investing firm (19:03) Beth’s focus on small-cap stocks (20:29) Beth’s introduction to Mario Gabelli (21:06) How a value trap is created (22:44) Why the management team is the best protection from a value trap (23:21) Getting comfortable with the artistic side of investing (25:33) Preparing to ask insightful questions (27:23) Talking to management as a shareholder (29:37) The benefit of constructive activism (31:51) Crocs as a case study of a compounder (33:19) Beth’s approach to valuation (35:06) Sourcing ideas with curiosity (36:28) Building up a valuable database (38:04) The seamless transition after being acquired by GAMCO (39:10) How Beth’s career at GAMCO increased her interest in the microcap space (40:35) Beth’s experience managing the Teton Westwood Mighty Mites Fund (42:01) Founding Crocus Hill partners in 2017 (44:47) Beth’s connection to the Pohlad family (45:56) Taking the dream job at Pohlad (47:29) The similarities between investing in public and private markets (49:25) Why Beth is eager to pass on the training she received (52:22) How the pandemic has shifted Beth’s thinking on businesses (53:54) Applying value investing principles to non-traditional value companies (56:27) And much more!   Mentioned in this Episode: Pohlad Investment Management, LLC Benjamin Graham’s Book | The Intelligent Investor Howard Marks’ Memo | Something of Value   Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

12 Maalis 202157min

Any sound investment strategy must include both a tactical and a structural component. The tactical side requires close attention to the firm’s financials and prospects, while the structural side puts that analysis in the specific context of the industry as well as the economy at large. Our guest, Anna Nikolayevsky, is here today to share her approach and how her investment strategy has evolved.   Anna Nikolayevsky is the founder and Chief Investment Officer of Axel Capital Management, a fundamentally driven long/short firm investing in equities across a variety of sectors and geographies. Before founding Axel Capital in 2002, Anna was an analyst at Zweig-DiMenna Associates and Goldman Sachs Asset Management. Anna holds a BS from NYU, an MBA from Columbia Business School, and has also received multiple accolades for her investment work, including being the recipient of the Investors Choice Awards for Emerging Fund of 2015. She is a wonderful friend of the Centre and I'm incredibly thankful for all she does here for us at the Business School.   On this episode, Anna and I discuss how her humble childhood ultimately impacted her career choice, starting in the world of trading as a freshman, her rich learning opportunities early in her career, what it was like to start her firm in the early 2000s, why she decided to depart from the traditional hedge fund model, her thoughts on the future of value investing, and so much more!   Key Topics: How Anna’s childhood influenced her career (3:08) Anna’s transformative experience at Stuyvesant High School (5:17) Anna’s start in the world of trading (6:43) Why Anna decided to apply to Columbia Business School (8:14) Insights from working for Mario Gabelli (9:09) Establishing a foundation of independent thought (11:07) Learning opportunities as an analyst at Goldman Sachs (12:32) Why Anna made the move to a hedge fund (15:16) The starting point for Axel Capital Management (16:29) Axel Capital’s post-bubble success (18:38) Rethinking the traditional hedge fund model (19:48) The issues Anna identified in the housing market leading up to the global economic crisis (21:33) Finding an alternative to the housing market (23:33) How to think about your search strategy (25:19) Timing and risk management of shorts (26:47) Anna’s approach to risk management (27:56) Thinking about fiscal policy and portfolio construction (29:12) Axel Capital’s portfolio positioning during the ups and downs of the market since 2018 (30:57) The wider effect of highly available capital (33:01) How the pandemic has impacted Axel Capital’s portfolio structure (34:30) Planning your approach to structural shocks (36:45) Why Anna is comfortable with a relatively concentrated portfolio (38:46) Axel Capital’s approach to industry analysis (40:09) Decentralization away from Wall Street (41:31) The democratization of trading (43:03) My thoughts on the long-term impact of the increase in retail investors (44:03) And much more!     Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

26 Helmi 202146min

Over the last few years, the opportunities for global value investing have improved significantly. Yields are incredibly low across the board, putting pressure on improving operational performance to generate returns. In such an environment, Europe is fertile ground for the value investor. With room for operational improvement in many sectors and a robust institutional environment, it’s an ideal market to deploy your activist dollar. When I decided to bring this topic to the show, I couldn’t think of anyone better than David Marcus to have a thorough conversation. David Marcus is Co-Founder, Chief Executive Officer, and Chief Investment Officer of Evermore Global Advisors, LLC, which he co-founded in 2009, and is also portfolio manager of the Evermore Global Value Fund. Beginning his career in 1988 at Mutual Series Fund, David was mentored by renowned value investor Michael Price and rose to manage the Mutual European Fund and co-manage the Mutual Shares and Mutual Discovery Funds, representing over $14 billion in assets. In 2000, he founded Marcstone Capital Management, LP, a long-short Europe-focused equity manager, largely funded by Swedish financier Jan Stenbeck. After Mr. Stenbeck passed away in 2002, David closed Marcstone, co-founded a family office for the Stenbeck family, and advised on the restructuring of several public and private companies the family controlled. David graduated from Northeastern University in 1988 with a B.S. in Business Administration and a concentration in Finance. On this episode, David and I discuss his structured approach to learning that he’s been committed to since starting his career, his comprehensive approach to investment analysis, why he believes there are huge opportunities in the European markets, how many people are taking the wrong approach when assessing investments in Europe, and so much more!   Key Topics: How David always knew investing would be in his future (3:51) David’s internship experience during the 1987 stock market crash (5:18) Getting a shot at a trading desk within a month of working with Michael F. Price (7:37) How David’s learned what makes a good analyst (9:24) Pivoting into European investing (11:11) Learning from the Swedish financial crisis of the early 90s (13:14) Looking beyond the CEO to the main shareholder (15:41) Leveraging your existing knowledge in new areas (16:45) When David became the head of Europe across portfolios at Franklin Mutual (19:46) David’s decision to start Marcstone Capital Management (23:36) Transitioning from stock picker to operator (26:32) Taking a private equity approach to public companies (29:43) The birth of Evermore Global Advisors (30:20) The advantage of being a generalist and a specialist (33:27) Why you must build your network (34:42) Deepening your operational understanding by engaging management (36:11) Mischaracterization of the European market (39:25) Game-changing opportunities in the European Union (EU) (41:19) What key areas David looks at in investments (42:53) The fundamental lack of knowledge about European institutions (45:37) Long-term thinking and European evolution (49:36) Understanding the local rules (51:58) Why you need to figure out peoples’ motivations (52:27) The opportunity behind deconglomeration in Europe (55:20) Good managers as an important competitive advantage (57:17) Taking advantage of room for operational improvement (59:10) Assessing the right time for the right people (1:01:04) The confluence of value and growth in Europe (1:02:22) Misconceptions about value and growth (1:05:33) Finding growth opportunities at value prices (1:06:39) Screening with numbers instead of words (1:07:55) The benefits of quarterly offsites (1:09:24) Getting clear on the reason behind investor activism (1:11:41) David’s approach to risk management (1:14:14) Why David’s view on leverage has changed (1:16:29) Checking and testing your thesis continuously (1:17:55) And much more!  Mentioned in this Episode: Evermore Global Advisors Value Investing with Legends Podcast | Leveraging Fundamentals to Remain Relevant with David Samra David Marcus’ Whitepaper | Europe: Lonely and Lumpy, Yet Extremely Compelling European Union Website Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

12 Helmi 20211h 21min

Many of the guests that I've had on this program are people I've known for years. We approached those conversations as an opportunity to explain together to the audience their methods, philosophies, and approach. Today’s conversation with Samantha Greenberg is a bit different. Samantha is someone I’ve looked forward to meeting for some time now as she would come up constantly in conversations with other investors and I’m happy to get to know her alongside you. Samantha Greenberg is Portfolio Manager of Technology, Media & Telecom investing at Ashler Capital, a Citadel company. Before joining Ashler Capital, Samantha was Chief Investment Officer of Margate Capital Management which she founded in 2016, a partner and TMT/consumer sector head at Paulson & Co. Inc., and a vice president in the Special Situations Group of Goldman Sachs. Samantha received her MBA from Stanford University's Graduate School of Business and graduated from the Wharton School at the University of Pennsylvania with a BS in Economics. On this episode, Samantha and I discuss how she developed an interest in the investment industry, why asset management is a particularly good field for women, how her experiences at Goldman and Paulson shaped her investment philosophy, her catalyst-driven approach, why resources are critical to scaling, the benefits of extensive data modeling, and so much more!   Key Topics: Samantha’s early discovery and passion for the markets (3:26) How Samantha’s interest in investing continued throughout her school years (4:28) The experience that drove Samantha’s passion for entrepreneurship (5:52) How Samantha’s experience as an internet and media analyst shaped her passion for tech (7:58) Formative experiences from successive market crises in Samantha’s early career (9:24) Learning true process diligence (11:52) Critical lessons about catalysts from John Paulson (14:19) Samantha’s experiences at Goldman Sachs and Paulson & Co. in the late 2000s (15:59) Why asset management is a great industry for women, despite the current demographics (19:26) Comcast as a powerful example of asymmetry from Samantha’s time at Paulson (22:55) The importance of steady-state valuations (26:28) The decision to start Margate Capital (27:58) Margate Capital’s investment philosophy (29:47) Samantha’s perspective on idea generation (32:07) How access to resources acts as a major barrier to entry for hedge funds (33:27) Understanding the rationale behind mispricing (35:58) Why a catalytic event is crucial for Samantha (37:24) Making decisions about portfolio sizing (38:19) Hedging market exposure (40:25) Shock testing your portfolio (43:20) A case study on value-unlocking catalysts with the Madison Square Garden Company (45:12) The leisure industry is one to watch for the future (50:46) Why Samantha left Margate Capital for Ashler Capital (52:24) How regulatory risk impacts the future of investments in the technology industry (55:47) The current tech trends Samantha is keeping an eye on (58:48) And much more!  Mentioned in this Episode: Ashler Capital Value Investing with Legends | Season 4, Episode 2 - Richard Lawrence - Investing in Superior Businesses  Thanks for Listening! Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at valueinvesting@gsb.columbia.edu. Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

29 Tammi 20211h 1min