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18 results for “investment thesis”
Topic2 mentions across episodes
Investment thesis
...investment makes you a 20% rate of return or 25 or 12 Yeah. That it's not worth putting in the portfolio? So we underwrite positions that we think can double over a three year period with about 25, 30% downside. So if you back out that IRR, you know,
31:27 / 32:32
from transcript31:27 – 32:32
...a thesis. They're investing between 60 and $80 of that investment for the platform and reserving 20 to 40 for add ons. We're almost exact inverse. I'm committing a $100 to a thesis. I'll deploy 5 to 25 for the platform. And what that does is it creat
14:10 / 15:17
from transcript14:10 – 15:17
if you want a car, you don't go out and buy the best steering wheel, the best seat, the best windscreen, and hope that you get a good car. You actually have a plan for a car and buy the parts that suit the car you want. So having built the technology
32:12 / 33:24
from transcript32:12 – 33:24
...It's a different process in psyche. How does that change? So when we're making reinvestments, we re revisit the investment case. We do an updated 10 q. We reexamine that five times upside case. And I guess you then have, like broadly speaking, there
48:45 / 49:46
from transcript48:45 – 49:46
have an IRR impact. Hopefully, there'll be a commensurate MOIC increase, but I think that's a big risk. I think most of the risks though, candidly, is idiosyncratic execution risk. There are a lot of benefits from evaluation and potential for efficie
47:18 / 48:26
from transcript47:18 – 48:26
The first tool in that process is something that I've worked fifteen years on honing, which we call the asymmetry ranker. So every analyst, whether we own a security that you cover or not, has an updated model on this company and a expected IRR. That
18:37 / 19:48
from transcript18:37 – 19:48
lower cost lease or more capital for tenant improvements. So it's a win win win scenario. The portfolio company wins because they have more EBITDA or more capital spend. The real estate fund wins because there's an opportunity to elongate the lease a
50:11 / 51:19
from transcript50:11 – 51:19
positions, but without destroying the confidence by just getting to a point where we just can't have a view. And what metrics are you using to determine equilibrium and markets that move away from equilibrium? Yeah. So the team builds DCF models for
35:16 / 36:38
from transcript35:16 – 36:38
One, we think that the equity risk premia exists and it's pretty reliable. And so holding equities over a long time frame, we think should deliver a source of return for a long term investor. Now that's not rocket science, but it's important to state
32:15 / 33:20
from transcript32:15 – 33:20
But it allows us to have the ability to manage the business the best at the moment. Over time, it's a debate whether the deal by deal versus a fund makes more sense. That's when we're going through it. Depositors if we were to have a fund because per
37:23 / 38:37
from transcript37:23 – 38:37
So we spend time becoming sector experts and looking for opportunities where we think there's the best chance of value, right? So, we're looking for where is value, out of favor sectors, not necessarily contrarian, but just not the flavor of the days
32:59 / 34:03
from transcript32:59 – 34:03
...board and our investment committee. And we have this very open conversation with the board. And so the sort of scenario we're talking about is, well, if equity markets are doing 10 say, which is pretty healthy considering where they're priced today,
59:58 / 1:01:17
from transcript59:58 – 1:01:17
Like, you want to be operating in a market where you have rational investors making rational decisions, doing a really solid analysis on companies because you need that market to be sort of pricing efficiently. I think there are examples of that, but
40:28 / 41:31
from transcript40:28 – 41:31
that seat on the Gulfstream that they want. They'd rather find a Gulfstream than a triple seven than an a three eighty. I don't blame them. It sounds like you've gone about this in a deal by deal basis. How have you thought about the value of doing i
36:42 / 37:49
from transcript36:42 – 37:49
What we did was we said, look. We're gonna create a product before seeing if it's a good business. I wanna create what I would deem to be the most shareholder friendly or investor friendly way to gain access to long exposure. Let's do that, and then
51:45 / 52:46
from transcript51:45 – 52:46
You underwrite medium, longer term horizons, and you take a very fundamental approach. The rub of all that is is that I can do all those things and still not succeed because you need to have a capital base that's aligned with you, and that's what the
29:57 / 31:06
from transcript29:57 – 31:06
...five investments we'd ever made if we had sold at that point in time. You have a small team within a team that's managing this investment, but it's come to represent a large share of unrealized carry and we have a partnership and other partners start
37:29 / 38:54
from transcript37:29 – 38:54
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