Invest Like The Best
Episode 258 Building an Investment Compass
Invest Like The Best

Episode 258: Building an Investment Compass

Invest Like The Best

Episode 258

Building an Investment Compass

Ricky Sandler is the founder of Eminence Capital. We cover Ricky's evolution as an active investor, why he thinks this is a stock picker's environment, and what keeps him competitive after a long and successful career.

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[00:02:42] - [First question] Whether or not great investment firms should be led by a single investor

[00:03:25] - Episodes where singular investment power has proven effective and powerful

[00:05:06] - Where he finds joy in the investing process on a regular basis

[00:06:19] - Ways he’s learned to become better at guiding and helping teams he works with

[00:08:14] - The most common types of fool's gold he comes across

[00:11:00] - Evolution of the pricing mechanisms in ever-evolving markets

[00:16:14] - Common features of a good mispricing opportunity

[00:18:42] - How he interacts with other hedge funds and long-only investors

[00:21:14] - An investor he often disagrees with but loves talking to 

[00:22:13] - The investment he’s most proud of historically

[00:25:11] - What the healthy draw that keeps him coming back to investing is

[00:28:31] - His opinion on crossover funds and their growing popularity

[00:32:09] - What the world in 2022 looks like to him and what both excites and worries him

[00:38:19] - Key contributors that influence liquidity and how it flows into equity prices

[00:41:26] - A macro view of the healthcare sector and why it’s so interesting today

[00:43:52] - Advice he’d give to younger investors for stepping into the space writ large

[00:46:45] - The kindest thing anyone has ever done for him

Building an Investment Compass

Introduction

Patrick
My guest today is Ricky Sandler, founder of Eminence Capital. Ricky's a hedge fund veteran managing over $8 billion of assets across Eminence's strategies. We cover Ricky's evolution as an active investor, why he thinks this is a stock picker environment, and what keeps him competitive after a long and successful career. Please enjoy my conversation with Ricky Sandler.

Leadership in Great Investment Firms

Patrick
Do you think that most great investment firms can or should be led by a single investor?

Ricky
Patrick, thanks. Great to be here with you, and I believe that the answer to that is yes. I believe that somebody needs to be CIO, needs to own it. He or she needs to have really strong lieutenants who have a ton of responsibility, who can deploy capital. So it doesn't mean he's the only one deploying capital, but I think at the end of the day, management by committee is dangerous. I do believe that a single CIO structure is important, how that all fits into someone who could be chairman or the CIO, but you need accountability at the top to set kind of direction.

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