Business – Thematic Investors

Thematic Investors: Will Homan-Russell on Asset Allocation Strategies in Shipping

By Thematic Investors | October 14, 2024

In this latest episode of Thematic Investors Podcast, host Kieran Cavanna, Chief Investment Officer and Co-Founder, Old Farm Partners is joined by Will Homan-Russell, Chief Investment Officer, WMC Capital. Will brings his expertise on global shipping investment plays and how various market forces can impact the future of this industry.

Each year, there are around 70,000 vessels carrying 12.5 billion tons of goods by sea. These staggering numbers are broken down into carrying containers (between 15-20%) filled with cars and finished products, while the remaining transports carry commodities (80-85%) to keep the world running. These sectors come with specific supply and demand dynamics based on utilization levels, which can be a signal to institutional investors to get involved.

Additional key points that are highlighted in this podcast include:

discover the remarkable evolution of the shipping industry over the past half-century and uncover the key supply and demand dynamics that empower investors to accurately forecast utilization trends and performance.
with current geopolitical tensions running high globally, how does the shipping industry navigate these shocks to the system, and how can allocators take advantage of these investment opportunities?
an exploration of the dynamic nature of the shipping industry, where the ebb and flow of demand drive the need for new builds and replacements. Dive into the transformative impact of cutting-edge emission regulations on vessel design, and what the new carbon intensity index standards will be as the industry moves forward.
as the International Maritime Organization mandates a 40% reduction in shipping’s carbon intensity by 2030 and a shift to carbon neutrality by 2050, what groundbreaking innovations will rise to the challenge? Possibilities include retractable sails, advanced rotors, and cutting-edge propulsion technologies like green ammonia or methanol.
what factors have led to the decline of shipbuilding in the US and UK, and where are the innovative hubs of production emerging globally today?
And more

Connect with Will Homan-Russell:

Connect with Kieran Cavanna:

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Gavin Baker Blending Sci-fi, History and Literature for Tech Investing Success

By Thematic Investors | July 1, 2024

Michael Steinhardt offered invaluable insights into investing, emphasizing the importance of conviction, balance, and the willingness to acknowledge mistakes. This rings especially true in the dynamic world of technology investments, where assessing asset pricing and risk in areas like artificial intelligence, application software, GPUs, and data management is crucial for success.

In this latest episode of the Thematic Investors podcast, Kieran Cavanna is joined by Gavin Baker, CIO & Managing Partner, Atreides Management, LP. Gavin shares how his love of history and games of chance ignited his enthusiasm for technology investing.

Additional key points discussed in this podcast with Gavin include:

how he said goodbye (momentarily) to the dream of living in a pickup and rock climbing and doubled down on investing in technology-themed investments.
throughout history, starting from the era of the steam engine, we have observed the emergence of technological bubbles that often herald a new wave of investment opportunities. As we contemplate the rise of AI, the question arises: could we be on the brink of another such transformative bubble?
how can VC’s or private equity firms take advantage of data center investments for the future.
the challenges that numerous multi-billion dollar startups encounter in this industry and the significant risks associated with investing in them, particularly with the formidable presence of industry giants such as Google, Meta, and Microsoft and the rest of the Magnificent Seven..
how his time at Fidelity prepared him with an ‘investing lens’ to see the truly different CEOs of our time. He explains how it’s almost like watching Jordan play basketball and comparing the way Elon and Jensen run Tesla and Nvidia.
how his parents’ love of literature and history helped him open his imagination to technology investing across both public and private asset classes.
And more.

Resources:

Technological Revolutions and Financial Capital by Carlota Perez
Google: Attention is All You Need

Connect with Kieran Cavanna:

About Gavin Baker:

Gavin Baker is the Managing Partner and Chief Investment Officer of Atreides Management, LP. In addition to overseeing investments and research at Atreides, he is responsible for the firm’s day-to-day portfolio management. Prior to founding Atreides in 2019, Gavin was at Fidelity Investments from 1999 to 2017, most recently as the portfolio manager of the Fidelity OTC Portfolio from 2009 to 2017. He also helped spearhead Fidelity’s venture capital investing from 2013 to 2017. Prior to managing the Fidelity OTC Portfolio, he was a portfolio manager of the Fidelity Select Wireless Portfolio from 2007 to 2011, the Fidelity Select Telecommunications Portfolio from 2007 to 2009, and the Fidelity Select Pharmaceuticals Portfolio from 2002 to 2005. Gavin started his career at Fidelity as an analyst and focused on semiconductors, pharmaceuticals, retail, consumer packaged goods, and telecommunications. Gavin earned an AB in economics and history from Dartmouth College.

Please note, the information covered and posted represents the views and opinions of the guest, and does not necessarily represent the views or opinions of Vidrio Financial and or our host, Kieran Cavanna. The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding investment planning.

All opinions expressed by Gavin Baker in this podcast (the “Podcast”) are solely his own opinions and do not necessarily reflect the opinion of Atreides Management, LP (“Atreides”). This Podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Atreides may maintain positions in the securities discussed in this Podcast. This is not an offer to sell, nor a solicitation of an offer to buy, any security in any fund managed by Atreides. The statements and opinions contained herein may change at any time, based on market or other conditions. This Podcast includes forward-looking statements, including projections of future economic conditions, and information that is provided for illustrative purposes. Atreides does not make any representation, warranty, guarantee, or other assurance whatsoever that any of such forward-looking statements will prove to be accurate.

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Scott Bessent a Global Macro Veteran on the Path Ahead

By Thematic Investors | May 13, 2024

Legendary basketball coach Pat Riley was once quoted as saying, “Keep the main thing, the main thing”, which is a great tip for anyone wishing to enter the field of macro investing on the global stage. Everyone has similar data but the secret is how you interpret that intelligence in terms of risk, economic indicators, and even a bit of financial market history.

In this latest installment of the Thematic Investors podcast, host Kieran Cavanna welcomes a guest who has successfully blended those aspects into becoming one of the great macro thinkers in the hedge fund world. Scott Bessent, Founder of Key Square Capital, has built his career from early investigative journalism roots to a financial analyst at Brown Brothers Harriman, to a Middle Eastern family office, and on to becoming the CIO of Soros Fund Management. Delve into a captivating discussion with Scott as he offers insights into global financial markets spanning Japan, China, Europe, and the United States, unveiling the future landscape for investors and emerging trends.

Further highlights from Scott include:

how a Yale Career Advisory job posting, (complete with sofa bed) led him to reboot his career focus after being on the fence as a computer scientist or journalist.
his transfer to the London office of Soros Fund Management, and his big bet on the Quantum Fund.
a view of data analytics today and how his investment style is a mix of liberal arts, math, and Excel formulas.
his thoughts around the abuse of the “exorbitant privilege” in the United States, and what that means for national security and the future debt trajectory.
his run-in with Sam Bankman-Fried.
thoughts on artificial intelligence and whether it’s inflationary or deflationary, and how hyperscalers who are investing trillions in new data center projects may be working us towards an electricity shortage.
how the lead-up to the 2024 election is impacting financial markets and what sort of outcomes could occur if a Republican or Democrat becomes president.
And more

Resources:

Connect with Kieran Cavanna:

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: James Davolos on why investors can’t paint-by-the-numbers in real asset investing

By Thematic Investors | March 20, 2024

Looking for asymmetry in the institutional investing space, and making it a part of your core competencies is not an easy task. In many instances, this requires hard work built on chasing down inefficiencies in the market and going into research overdrive on an idea where very little sell-side coverage exists. This is where great success stories are made.

In this week’s episode of the Thematic Investors podcast, host Kieran Cavanna, speaks with guest James Davolos, Portfolio Manager, Horizon Kinetics who shares his methodology on tackling high inflationary markets while becoming a rising star in the value investing space.

James also covers:

his early hotel beginnings on the New Jersey Shore and how that evolved to the trading desk at Horizon Kinetics.
the end of the ‘Goldilocks’ scenario of low inflation, volatility, interest rates, and how the playbook has changed from the last 10-20 years.
what it means to be a bottom-up investor, going after investment opportunities using unconventional data collection techniques.
the prevailing logic around the topic of “immaculate disinflation” and whether investors are considering the full picture?
easy gains in AI for investors, and what does the full net benefit look like over time.
And more

Connect with Kieran Cavanna:

Connect with James Davolos:

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Stuart Mitchell on the Investment Sale Across Europe

By Thematic Investors | January 29, 2024

When looking at European investments how will the UK, France, Germany, Spain, and Italy align on energy transition, innovative technology growth, financial services, and more? How can institutional investors capture this market when comparing them against more attractive U.S. opportunities?

In our latest episode of the Thematic Investors podcast, host, Kieran Cavanna, speaks with Stuart Mitchell, Managing Partner | CIO and Investment Manager, S.W. Mitchell Capital LLP. Learn more about Stuart’s background that took him from studying medieval history through the values of detaching emotions from investing, an appreciation of analytical research, and managing over $2bn AUM of European equity assets.

Stuart discusses:

His background in investing and how he shed the bureaucracy, controls, procedures, and politics of large organizations and created his own investment firm.
How the UK market differs in valuations, sectors, and discounts when compared to America and why this isn’t explained by profitability or growth rates.
The fanatic move to electric vehicles and other forms of energy in light of oil demand going up in the short term just to keep supply and production at stable levels.
Why is Europe having a Hamiltonian moment? What investments will be prioritized by a joining of European states in terms of infrastructure, energy, defense, and more?
How are investment opportunities in defense positioned across the UK and will it ever go above 2% in GDP? If extra spending does occur (due to geopolitical events) why would America get the investment?
Why are alternative investments (from BP, Chevron, Exxon, and others) in wind, solar, and hydrogen simply not covering their costs of capital and are predicted to lose money over the long term.
European banks appear stronger than those in the US when reviewed for capitalization, leveraged ratios, liquidity, and more.
how culture plays a role in hiring people at S.W. Capital, from year-long internships to individual specialized areas of expertise.
And more!

Please note that the information covered and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Vidrio Financial and or our host, Kieran Cavanna. The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding investment planning.

Connect with Kieran Cavanna:

Connect with Stuart Mitchell:

About Stuart Mitchell:

Stuart is the Managing Partner and CIO of S. W. Mitchell Capital and the Investment Manager of the SWMC European Fund, as well as a number of managed accounts.

Prior to founding SWMC in 2005, Stuart was a Principal, Director, and Head of Specialist Equities at J O Hambro Investment Management (JOHIM, now Waverton Investment Management). At JOHIM he set up and managed the Charlemagne Fund, a long/short European fund, and the JOHIM European Fund, a long-only European fund. The JOHIM European Fund rose by 133%, from inception in December 1998 until March 2005, compared with 8% for the benchmark index. It was rated number one within its sector by Micropal as well as awarded three stars by Standard & Poor’s.

Upon leaving university in 1987, Stuart joined Morgan Grenfell Asset Management (MGAM) and soon afterward assumed responsibility for managing the continental European equity assets for MGAM’s British pension fund clients. Stuart was appointed a Director of MGAM in 1996. He subsequently took on the role of Head of European Equities and was responsible for $27 billion of equity assets. Whilst at MGAM he managed the Morgan Grenfell European Fund, which rose by 123% from January 1990 to June 1996, compared with 85% for the benchmark index. It was awarded first place in its sector in the Micropal Five Year Awards in 1996.

Stuart was born in Scotland and educated at the University of St. Andrews, where he read Medieval History. He is also a graduate of the Owner/President Management program at the Harvard Business School. Stuart speaks English and French.

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Alan Bezoza, DigitalBridge on finding the shiny penny in telecom investing

By Thematic Investors | December 18, 2023

In the fast-paced world of institutional investing, the speed of innovation varies across different sectors. However, in the realm of telecommunications, investment strategies are constantly evolving. Whether your focus is on the cutting-edge upstream products like carriers, data centers, and telecom companies, or the dynamic downstream products such as semiconductors and the intricate supply chain that supports them, this industry is always driving forward.

In our latest episode of the Thematic Investors podcast, host, Kieran Cavanna, speaks with Alan Bezoza, Managing Director, Liquid Strategies at DigitalBridge Investment Management. The conversation will touch on the evolution of the telecom sector, cloud wars (both 1.0 and 2.0) and the overall ecosystem, future trends, and a lot more.

Alan covers:

how his early intellectual curiosity led to a career in telecom investing by blending an inner tech nerd with financial analyst expertise.
the demand for power, space, and connectivity in the cloud ecosystem and how the shift to AI is driving change in this area.
how is the industry balancing the power hunger of servers and the data centers that are being built to meet the needs.
The power requirements for AI and the need to move data centers to areas with cheaper power
what plans are in place by the likes of Google, Microsoft, and Amazon to enhance AI in Cloud Wars 2.0.
how the investment narrative in supply and demand change depending on semiconductor analysts vs. data center analysts.
why many analysts viewed cable as a product that couldn’t scale, and yet DSL ended up being the biggest loser in the telecom battle..
why are Comcast and Charter floundering, while T-Mobile and Verizon are adding almost a million subscribers per quarter.
why Denver is such a linchpin for the telecom industry.
Speculation on the future of telecom, chips, artificial intelligence, and longer-term increments.
And more!

Connect with Kieran Cavanna:

Connect with Alan Bezoza:

About Alan Bezoza:

Alan Bezoza is a Managing Director of Liquid Strategies at DigitalBridge Investment Management with a focus on public equity securities within the Technology, Media, and Telecom sectors. Mr. Bezoza has spent over 20 years researching and investing in the TMT sector with a particular focus on the global Communications and Media Ecosystem, which includes media, cable, telecoms, mobile towers, data centers, communications technology, data networking, and their respective supply chains.

Prior to joining DigitalBridge in 2020, Mr. Bezoza was a Partner and Sector Head at Dorsal Capital, a market-neutral hedge fund, where he focused on the Media, Telecom, and Communications Technology sectors. Prior to Dorsal, he spent over seven years at Janus Capital, where he was a Senior Analyst and Co-Sector Lead of the Communications investment team that included the Telecom, Media, and Internet sectors. Mr. Bezoza previously worked in equity research as a Senior Vice President at both Oppenheimer and Friedman Billings Ramsey. He has published numerous industry white papers, appearing in print and financial news outlets (CNBC, Bloomberg, WSJ, etc.), and has keynoted industry conferences. In 2005, he was recognized by The Wall Street Journal as a “Best on the Street” analyst for his stock picks in the Broadcasting and Entertainment sector. Mr. Bezoza started his career at Lazard Asset Management, where he worked on the Emerging Markets and International small-cap portfolios.

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Why Institutional Investors Should Consider Uranium

By ThematicInvestors | October 2, 2023

When it comes to institutional investors exploring alternative energy sources uranium and nuclear energy present an intriguing opportunity. With the pressing need to address high global energy demands and combat climate change, this is an energy source that should not be underestimated. However, concerns still exist in terms of supply and demand as well as the geopolitical environment on the global stage.

In our highly anticipated second episode of the Thematic Investors podcast, host, Kieran Cavanna, engages in a captivating discussion on uranium investing with Daren Heitman, CFA, Managing Partner & Chief Investment Officer, and Chris Gillespie, Partner and Co-Portfolio Manager at Azarias Capital Management.

Daren and Chris discuss:

is now the right time for institutional investors to take a serious look at uranium investing options.
why haven’t we seen this commodity start to spike? When will contracting start to build true momentum?
how is the industry leader, Cameco changing their approach to uranium production to be more responsible for longer-term investors.
the risks associated with the United States’ dependence on Russia and Kazakhstan for nuclear fuel supply.
the increasing acceptance of nuclear power as a viable solution for meeting climate change goals.
the buildouts and extensions that the US, China, and Japan are planning versus a country like Germany who is looking to shut their plants completely.
and more!

Connect with Kieran Cavanna:

To learn more about our host visit:

Connect with Azarias Captial Management:

About Daren Heitman:

Daren Heitman was most recently a Partner and Portfolio Manager at Philadelphia-based Cooke & Bieler (2005-2014), where he led the firm’s successful launch of its Small Cap Value strategy and co-managed over $4 billion in mid/large-cap equities for institutional clients. He was previously a Senior Analyst and Partner at Schneider Capital Management (2000-2005), where he conducted in-depth research and analysis, mainly on small-cap value stocks.

He began his investment management career in 1994 at Skyline Asset Management, a Chicago-based investment advisory firm specializing in small-cap value management, where he was engaged full-time in small-cap value fundamental research. Daren earned an MBA with Honors from the University of Chicago – Graduate School of Business. He is also a graduate of Iowa State University with a B.S. in Finance.

About Chris Gillespie:

Chris Gillespie joined Azarias Capital in March 2015. Chris was previously a Senior Analyst and Partner at Schneider Capital Management (1999-2015). While at Schneider, he conducted in-depth, fundamental research on small and mid-cap value companies across a broad range of sectors, including industrial, machinery, autos, food & beverage, metal & mining, commodities, and trucking.

Chris earned an MBA in Finance from Columbia Business School and graduated with Honors from Boston College with a B.S. in Economics.

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More

Thematic Investors: Fueling Technological Breakthroughs in Energy Transition

By ThematicInvestors | September 11, 2023

Back in 1962, President Kennedy declared that by the end of the decade the United States would have a man on the moon. Energy transition is an entirely different animal where the technology, consumer sentiment, and politics will require further progress before we can declare victory.

In this inaugural episode, Kieran Cavanna, CIO, Old Farm Partners and host of the Thematic Investors podcast, is joined by Todd Kantor, Founder and Managing Member of Encompass Capital Advisors LLC. This is a critical podcast for those interested in energy transition and the investment strategies that are required to play in this arena.

Kieran and Todd discuss:

How Todd and the Encompass team define above and below surface risk, and how they apply it in investment decisions today.
Are we fighting a losing battle in climate change if China emissions have increased over 7 billion tons since 1999?
How much are Americans willing to spend in the fight on climate change? Hint: there’s a significant mismatch between responses and what’s actually needed.
The difference in active investing and passive investing in this sector.
The critical importance of data analytics, and why being a data junkie is especially important when analyzing energy transition strategies.
And more!

Any statements provided by Encompass Capital Advisors LLC are for informational purposes only and shall not constitute an offer to sell or a solicitation to buy any investment product or services offered. While all the information discussed is believed to be accurate, Encompass makes no express warranty as to its completeness or accuracy, nor can it accept responsibility for any errors. The views and opinions expressed maybe forward looking and are subject to change without notice. Any projections, outlooks or assumptions should not be construed to be indicative of the actual events which occur.

Connect with Kieran Cavanna:

To learn more about our host visit: https://www.vidrio.com/blog/thematic-investors-podcast-kantor-encompass

About Todd Kantor:

Todd Kantor is a founder and Managing Member of Encompass Capital Advisors LLC, an SEC-registered investment adviser. He has over 21 years of experience in the global energy markets as a portfolio manager, analyst, trader, and investment banker. Mr. Kantor is the Portfolio Manager of the Encompass Funds. Mr. Kantor manages an alpha-driven long/short equity strategy focused on bottom-up fundamental research analysis across a variety of global energy sub-sectors which include traditional exploration & production, and oil field services, energy transition, renewables, and energy-related cyclical sub-sectors. Encompass Capital launched on February 1, 2012, when Mr. Kantor and his core team spun out from Citadel LLC PioneerPath Capital platform where Mr. Kantor managed an energy-focused portfolio from May 2008 to January 2012. With a team of fifteen professionals, Mr. Kantor oversees an eight-person investment team. The Encompass investment process developed by Mr. Kantor is underpinned by rigorous modeling of equities and commodities, coupled with extensive data analysis and communication with management teams globally. Mr. Kantor started his career at JP Morgan in the Global Oil & Gas Investment Banking Group, and subsequently held analyst positions at Solstice Equity Management, a fund within the Bass Brothers Taylor Fund L.P, and Touradji Capital, a “Tiger cub”. Mr. Kantor has a B.B.A. degree from the Goizueta Business School at Emory University with a concentration in Finance.

Podcast: Play in new window | Download | Embed

Subscribe: RSS | More