Invest Like The Best
Episode 86 Opportunities in Public and Private Markets
Invest Like The Best

Episode 86: Opportunities in Public and Private Markets

Opportunities in Public and Private Markets

Jason Karp is the founder and CIO of Tourbillon Capital Partners. We cover activity in the public and private markets, opportunities in the health and wellness sector, and investing in the cannabis industry.

This episode is brought to you by:

CFA Institute. CFA Institute the global association of investment professionals whose mission is to lead the investment profession by promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society. CFA Institute serves a global community of investment professionals working to build an investment industry where investors interests come first, financial markets function at their best and economies grow. The Chartered Financial Analyst credential is the most respected and recognized investment management designation in the world. The views expressed in this podcast do not necessarily represent the views of CFA Institute.

[00:03:06] – (First question) – Jason’s view on private markets vs public markets and how his view has evolved

[00:06:02] – Phase of the private markets where companies can achieve huge size and scale without going public

[00:10:31] – Framework of Jason’s value-based investing strategy

[00:13:47] – Reverse discounted cash flow

[00:16:27] – Are there areas of the market that are easier to predict using Jason’s models

[00:20:29] – Tech dominance the longer they are around

[00:22:08] – How markets have changed over Jason’s career

[00:25:58] – Types of edge that you can have in the market

[00:30:00] – Broad examples of sectors that are high-quality, but momentum is hurting them

[00:31:32] – Backstory of Hu Kitchen

[00:38:33] – Investment research into health and wellness

[00:42:56] – State of acquisitions, particularly in consumer product goods

[00:47:13] – Jason’s research into cannabis

[00:50:43] – The misperceptions of cannabis

[00:56:30] – Why cannabis is a more important sector to consider than crypto

[00:57:51] – What are the most important levers to growing a business

[01:02:24] – Biggest lessons learned in hiring good people

[01:06:10] – Investing lessons

[01:09:27] – Kindest thing anyone has done for Jason

Opportunities in Public and Private Markets

Introduction

Patrick
I believe that any investment strategy that will deliver strong returns in the future must evolve. The strategy itself should rest on rock solid fundamental principles, which change rarely if ever, things like price discipline or business growth, but the features of the strategy must keep getting better because the marketplace is incredibly competitive. That evolution is the topic of today's conversation with Jason Karp. Jason is the founder and CIO of Tourbillion Capital Partners, a multi-billion dollar asset manager based in New York city. We cover a ton of interesting ground. We start with what has happened in public and private markets, discussing the role of quants, passive indexes, and value versus deep value investing. We compare the relative merits of investing in private equities and where and how opportunities arise. We then focus in on two interesting private investing trends, the health and wellness sector, and the cannabis industry.

First, we discussed Hu Kitchen and Hu Products, the food business that Jason started with his family several years ago in response to personal health challenges. Second, we discussed his evolved views on cannabis as an investment space and why it may also represent a massive growth opportunity. You all know that I value transparency, so it's important to note that since I recorded the conversation, my family became an investor in Hu products. It's been a fascinating means to learn about the food, health and wellness industry, which has grown so rapidly in recent years. We were customers of Hu in New York city, long before I even knew Jason, which made that part of the conversation, especially interesting for me. This episode reinforced my belief in pushing one's investment strategy to adapt to changing market conditions and competitive pressures. If we have any hope of beating Vanguard, we can't ever rest on our laurels. This was an especially eclectic and fun conversation, I hope you enjoy my chat with Jason Karp.

Access the full transcript
Sign in or register to view episode transcripts.

Contact

Get in touch at help@joincollossus.com