This episode is brought to you by:

Tegus. Tegus is the modern research platform for leading investors, and provider of Canalyst. Tired of calculating fully-diluted shares outstanding? Access every publicly-reported datapoint and industry-specific KPI through their database of over 4,000 driveable global models handbuilt by a team of sector-focused analysts, 35+ industry comp sheets, and Excel add-ins that let you use their industry-leading data in your own spreadsheets. Tegus’ models automatically update each quarter, including hard to calculate KPIs like stock-based compensation and organic growth rates, empowering investors to bypass the friction of sourcing, building and updating models. Make efficiency your competitive advantage and take back your time today. As a listener, you can trial Canalyst by Tegus for free by visiting tegus.co/patrick.

Show Notes

(00:03:07) - (First question) - Comparing the investing themes of the ‘10s to the ‘20s

(00:04:59) - The skillset differences between investing in equity versus credit

(00:06:28) - Why Carvana’s stock plummeted and thoughts on the destruction of value

(00:07:33) - General overview of credit cycles and what they are

(00:15:42) - Opportunities come from knowing the names well enough

(00:19:17) - Making substantial decisions in a matter of minutes as a credit investor

(00:22:23) - How he thinks about the evolution of sourcing alpha in credit markets

(00:27:37) - Why so many institutional capital pools have fewer credit managers

(00:29:19) - The value unlock of being the right size as a firm

(00:31:08) - His childhood and the unique aspects of it that set him apart

(00:37:28) - Lessons learned early on about running an investment firm

(00:43:34) - The role imagination plays in credit investing

(00:46:35) - How weekly breakfasts lead to an investing partnership

(00:50:51) - What Tracy Fenton has done for Diameter

(00:53:05) - Things that should change about investing firms writ large

(00:57:09) - Calling balls and strikes and how his team learns and works together

(00:59:37) - Why he’s motivated more by failure than success

(01:00:54) - Where he finds the most joy in his investing process

(01:04:07) - Non-negotiable attributes he’d look for when investing in other GPs

(01:05:22) - New variables that have his attention in the current market

(01:08:27) - What feels like unfinished business to him

(01:09:43) - His reaction to everything going on today in real estate

(01:10:52) - The kindest thing anyone has ever done for him