Today’s conversation is a special one. I’m delighted to share my fireside chat with Markel Corporation’s Tom Gayner from our 26th Annual CSIMA Conference. With decades of industry experience, Tom joined us to share insights into how Markel has differentiated itself from others in the insurance industry and the investment approach and philosophies that facilitate its continued growth.   Thomas “Tom” Gayner is the Co-Chief Executive Officer of Markel Corporation. He oversees investing activities for the company, as well as the Markel Ventures’ diverse industrial and service businesses. Tom joined Markel in 1990 to form Markel Gayner Asset Management which provided equity investment counsel for Markel Corporation and outside clients.   In this episode, Tom and I discuss how he went from analyzing Markel to joining the team after its IPO, Markel’s three-engine business model, how Markel Ventures originated, why it’s essential to create an environment that’s supportive of the way you'd like to operate, and so much more! Key Topics:   Tom’s journey to joining Markel (1:28) Markel’s three-engine architecture of insurance, investments, and Markel  Ventures (5:00) How AMF Bakery Equipment became Markel Ventures' first investment (9:18) The four lenses for assessing equity investments (13:33) Markel’s nuanced approach to portfolio management (20:44) Learning to improve your investment decision-making process (24:14) Why Tom calls financial statements a donut truth (28:01) Translating the language of GAAP accounting to real economic meaning (29:48) Assessing a company’s debt levels (33:31) How interest rates massively impact human behavior (35:05) And much more! Mentioned in this Episode:   Markel Corporation Annual Reports 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 [email protected].   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

When evaluating a company, getting a clear picture of all the relevant factors can be challenging. That’s why today’s guest, Scott Hendrickson, heavily emphasizes management quality and companies where diligence can provide a high level of conviction.   As a Columbia Business School graduate and adjunct professor, Scott is both a practitioner and a teacher. He has been an integral part of the investing program for almost a decade.   Scott Hendrickson is a Partner and the Co-Founder of Permian Investment Partners, a $1.2 billion management-focused global long/short investment fund. Before co-founding Permian, Scott worked as an Investment Analyst at Brahman Capital. Prior to Brahman, Scott worked as an Associate at Industrial Growth Partners, a middle-market-focused private equity fund. Scott started his career as an Analyst in Merrill Lynch’s Investment Banking Program. Scott graduated from Emory University with a BBA in Finance in 2000 and Columbia Business School with an MBA in 2007. Scott serves on the Columbia Business School adjunct faculty, teaching Applied Value Investing since 2014.     In this episode, Scott, Tano, and I discuss Scott’s journey to a career in investing, why Permian has management as their core focus, the three main business quality metrics they employ, risk management for short interests, characteristics of transformational acquisitions, how teaching has expanded Scott’s perspective, and so much more! Key Topics:   How Scott’s interest in investing evolved from his love for music (1:57) Scott’s learnings from his time at Brahman Capital (5:35) Criteria Permian seeks in longs and shorts (7:01) Why Permian has management as a core focus (8:08) How the quality of Permian’s LPs has become an advantage (10:53) Permian’s approach to screening (12:49) The three main business quality metrics employed (15:38) Permian’s portfolio construction and power rank system (17:20) Breaking down the four short frameworks (22:01) Risk management for short interests (24:46) Factoring in the macro view (26:31) How Permian applies value-added research (30:00) What it means to be “diligence-able” and why that matters (33:38) Characteristics of transformational acquisitions (37:22) Differentiating between structural and fixable costs (39:41) What’s behind the long-term underperformance of European stock markets (42:35) How teaching has expanded Scott’s perspective (44:54) Scott’s recommendations for investors to improve the odds that they will be successful over time (46:26) What keeps Scott up at night and excited about the future (47:23) Scott’s book recommendations (50:16) And much more! Mentioned in this Episode:   William N. Thorndike’s Book | The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success Jim Rogers’ Books Investment Biker: Around the World with Jim Rogers Adventure Capitalist: The Ultimate Road Trip Hernando De Soto’s Book | The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else Joel Greenblatt’s Book | You Can Be a Stock Market Genius: Uncover the Secret Hiding Places of Stock Market Profits Seth A. Klarman’s Book | Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor 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 [email protected].   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!  

With the constant evolution of the asset management industry, investors need to stay a step ahead to justify earning an active management fee. With over 40 years of experience in the industry, this is a lesson that today’s guest, Bill Nygren of Harris Associates, instills in the younger analysts he mentors.   Bill is a true legend of value investing and an investor you can turn to whenever the market is uncertain. He radiates fundamental ideas and has an expansive perspective on the comings and goings of the market and the economy at large.    Bill is the Chief Investment Officer for US equities at Harris Associates, which he joined in 1983, and a vice president of the Oakmark Funds. He has been a manager of the Oakmark Select Fund since 1996, Oakmark Fund since 2000, and the Oakmark Global Select Fund since 2006. Bill served as the firm’s director of research from 1990 to 1998. He has received many accolades during his investment career, including being named Morningstar’s Domestic Stock Manager of the Year for 2001, and he holds an M.S. in Finance from the University of Wisconsin’s Applied Security Analysis Program (1981) and a B.S. in accounting from the University of Minnesota (1980).   In this episode, Bill, Michael, and I discuss why Bill was drawn to value investing, why generalist analysts transition more easily to portfolio manager than specialists, his approach to idea generation and portfolio construction, pivoting in times of crisis and great distress, recession insights from over 40 years of experience, and so much more! Key Topics:   Welcome Bill to the show (1:09) Bill’s lifelong fascination with the line between gambling and investing (2:17) Why Bill was drawn to value investing (4:51) The importance of working at a firm that shares your investment philosophy (6:26) Why generalist analysts transition more easily to portfolio manager than industry specialists (9:36) Dealing with industry intricacies as a generalist analyst (14:05) Harris Associates’ approach to idea generation (15:55) What it’s like to be an analyst at Harris Associates (18:31) Why Harris uses multiple techniques to define value (24:25) Looking at management’s attitude towards capital redeployment (26:33) Harris’ maintenance process and error recognition methods (30:08) Bill’s thoughts on the news of Microsoft’s massive investment into OpenAI(32:53) Pivoting in times of crisis and great distress (36:38) Capital One as a case study of a stock that represents a good investment opportunity today (41:25) Recession insights from over 40 years of industry experience (44:02) Thinking about the effect of the current interest rate environment (48:35) Criteria for portfolio construction and position sizing (49:52) The evolving opportunity set (53:21) Identifying anomalies in GAAP accounting (55:44) The things that keep Bill up at night and excited about the future (59:31) Bill’s book recommendations (1:02:04) And much more! Mentioned in this Episode:   Harris Associates Oakmark Funds Michael Dell’s Book | Play Nice But Win: A CEO's Journey from Founder to Leader John Mack’s Book | Up Close and All In: Life Lessons from a Wall Street Warrior Joe Maddon & Tom Verducci’s Book | The Book of Joe: Trying Not to Suck at Baseball and Life   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 [email protected].   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

One of the most exciting things in our industry is finding young investment managers who are incredibly bright, hard-working, and well-trained in the investment process. Our guest today, Angela Aldrich, fits that bill perfectly.   Angela is the co-founder of Bayberry Capital Partners, a hedge fund with a half-billion dollars in assets based in New York. Before starting Bayberry Capital Partners, she worked at John Griffin’s Blue Ridge Capital, which shut down in 2017 after a glorious 21-year run during which it returned its investors an average return of 15.3% annually. Angela graduated from Duke University with a degree in economics and received an MBA from Stanford University Graduate School of Business. Before joining Blue Ridge, Angela worked at Goldman Sachs, BDT Capital Partners, and Scout Capital Management.   In this episode, Angelo, Tano, and I discuss her path to a career in investing, what it was like to be mentored by John Griffin, Angela’s key learnings from her transition from analyst to portfolio manager, Bayberry’s investment philosophy and approach to search, portfolio construction and sizing, how to find opportunities in volatility, case studies of companies which demonstrate Bayberry’s organizational principles in action, and so much more!   This podcast is not an offer to sell or the solicitation of an offer to purchase any securities, nor is it an offer of any advisory services. This podcast is for informational and educational purposes only, and intended to provide general market commentary. The discussion of any individual investments discussed in this podcast is for informational purposes only, and any such investments are not representative of all of the investments held, or that may in the future be held, by any fund, account or investment vehicle managed by Bayberry Capital Partners LP. Nothing in this podcast, including any discussion of past results, is a guarantee of similar or future outcomes.   Key Topics:   Welcome Angela to the show (2:12) How Angela found her way to a career in investing (3:09) The transformational experience of working with John Griffin, founder of Blue Ridge Capital Management (5:53) Navigating the transition from analyst to portfolio manager (9:13) Portfolio construction as a form of risk management (11:20) Finding opportunities in periods of crisis and high volatility (15:00) The investment philosophy and organizational principles that drive results at Bayberry Capital (18:25) Bayberry’s approach to recognizing surprisingly high business quality (22:04) Signposts of suitable candidates for the short side (25:39) Unlocking value from an investment thesis (27:22) How to avoid thesis creep (30:26) The central importance of identifying the right key investment factors (33:23) Portfolio sizing principles at Bayberry (36:21) Why WillScot Mobile Mini Holdings became Bayberry’s largest long (39:36) How Bayberry goes about valuing businesses (48:27) Why Bayberry became interested in Burford Capital (50:38) What keeps Angela worried and excited about markets in the future (1:01:14) Angela’s book recommendations (1:02:32) And much more!   Mentioned in this Episode:   Carol S. Dweck’s Book | Mindset: The New Psychology of Success Sudhir Venkatesh’s Book | Gang Leader for a Day: A Rogue Sociologist Takes to the Streets   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 [email protected].   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!

Over the past several decades, asset management has transformed from a small industry with a few experts competing against a majority of amateurs in the market to a market saturated with well-equipped and highly resourced experts competing against each other.   When I think about my pantheon of all-time great investment thinkers and writers, our guest today stands out as one of the industry's legends. Charley Ellis has played the most significant role in how I think about the investment industry, and I can’t think of anyone better to talk about the industry's evolution.   Dr. Charles D. Ellis is the founder and former managing partner of Greenwich Associates, an international consultancy where he advised large institutional investors, foundations, and government organizations in more than 130 financial markets across the globe. Through that lens, he has been a keen observer of what works in organizations and markets for the last half-century. For nine years, Charley was chair of the Investment Committee at Yale, his alma mater, where he worked closely with its legendary Chief Investment Officer, David Swensen. He also served as a director of the Vanguard Group from 2001 to 2009. Charlie is a Harvard Business School graduate and has taught advanced investing courses at both Yale and Harvard. The CFA Institute recognized him as one of the twelve leading contributors to the investment profession, and along the way, Charlie has published nineteen books.   In this episode, Tano, Charley, and I discuss what inspired him to found Greenwich Associates, what goes into identifying the right questions to ask, how the industry has shifted from a winner’s game to a loser’s game, the massive changes in the asset management industry since the founding of Greenwich Associates, lessons from the Yale endowment model, Charley’s book recommendations, and so much more!       Key Topics:   Welcome Charley to the show (1:13) How Charley’s early experience at Donaldson, Lufkin & Jenrette inspired the concept for Greenwich Associates (3:07) Structuring research and gathering the right kinds of questions (7:51) How Charley developed a passion for sharing insights with the public at large (10:00) The dual roles of academia and the industry itself in the evolution of the asset management industry (11:46) Simon Ramo and The Loser’s Game (13:33) Massive changes in the asset management industry since Charley founded Greenwich Associates (19:07) Why it was much easier for active managers to beat the market in the early days of the industry (25:03) Understanding the relentless pace of competition (29:35) The importance of actively determining the right investment strategy for you (32:44) Charley’s perspective on the legacy of Vanguard’s Jack Bogle (37:26) Why Charley cites John Neff as the best active manager of his time (43:27) David Swenson’s capacity for innovative thinking (46:51) Lessons from the Yale endowment model (51:02) Highlights from Charley’s book, Capital (58:38) Essential elements of creating and perpetuating a great culture (1:00:06) Why the willingness to address problems head-on is crucial in sustaining excellence (1:02:30) Charlie’s excitement about our education system (1:06:19) Which overlooked issue does Charlie wish garnered more attention? (1:07:07) Charley’s book recommendations (1:12:09) And much more!       Mentioned in this Episode:   Charley Ellis’ Books Figuring It Out: Sixty Years of Answering Investors' Most Important Questions Inside Vanguard: Leadership Secrets From the Company That Continues to Rewrite the Rules of the Investing Business Winning the Loser's Game: Timeless Strategies for Successful Investing Capital: The Story of Long-Term Investment Excellence What It Takes: Seven Secrets of Success from the World's Greatest Professional Firms Charley Ellis’ Articles The Loser’s Game In Defense of Active Investing Burton G. Malkiel’s Book | A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy Neil deGrasse Tyson’s Book | Astrophysics for People in a Hurry     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 [email protected].   Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!