In this episode of Beyond The Ticker, Professor Kevin Kaiser discusses the evolution of shareholder activism, its impact on corporate governance, and the changing landscape of capital markets. He explores how activism has shifted from aggressive tactics to more collaborative approaches, the role of institutional investors, and the implications of recent innovations in voting mechanisms. The conversation also delves into global perspectives on activism, particularly in Japan, and highlights the key factors that contribute to successful activism campaigns.

takeaways

• Activism is evolving and takes many flavors.
• Shareholder activism is a source of useful thought.
• Activism is becoming a mainstream feature of capital markets.
• On average, activism leads to a 7% increase in firm value.
• Exxon’s auto voting could weaken shareholder rights.
• The universal proxy card has changed the balance of power.
• Activism styles vary by region due to culture and law.
• Japan is the last frontier of activism.
• Pick the right target for activism success.
• A strong company is the best defense against activism.

Summary

In this episode of Beyond The Ticker, host Rishika Ranka interviews Nathan, who transitioned from a legal career to asset management, focusing on municipal credit research at Vanguard. They discuss Nathan's journey, the current state of the municipal bond market, its historical performance, and the resilience of bonds in the face of disasters and policy changes. The conversation also delves into the complexities of credit risk assessment, supply and demand dynamics, and the impact of tariffs on the municipal market.

Takeaways

• Nathan transitioned from law to asset management, drawn by the excitement of the investment world.
• The municipal bond market is crucial for financing US infrastructure projects.
• Municipal bonds offer tax-exempt interest, making them attractive to investors.
• The market has historically low default rates, making it a high-quality asset class.
• Recent volatility in the market has not diminished the long-term value of munis.
• Supply and demand dynamics in the muni market are influenced by various economic factors.
• Credit risk assessment in munis requires expertise due to the diversity of issuers.
• Natural disasters can lead to economic stimulation and reconstruction in affected areas.
• The future of the municipal market looks promising, with strong fiscal management post-COVID.
• Tariffs and trade policies can indirectly impact municipal bonds, especially in trade-heavy states.

In this conversation, David Brickman, former CEO of Freddie Mac, discusses the complexities of the housing crisis, focusing on the roles of government-sponsored enterprises (GSEs) and the impact of policy on housing affordability. He explains the hybrid nature of GSEs, their evolution since the financial crisis, and the ongoing debate about their privatization. Brickman also addresses the implications of tariffs on construction costs and presents various policy proposals aimed at increasing housing supply and affordability.

Key Takeaways

• The housing crisis encompasses more than just affordability.
• GSEs play a crucial role in providing liquidity and stability to the housing market.
• Government involvement is necessary to ensure affordable housing.
• The GSE model has evolved but still operates under government control.
• Market share pursuit led to vulnerabilities in the housing system.
• Privatization of GSEs raises concerns about public risk and private gain.
• Tariffs on construction materials could worsen housing supply issues.
• Addressing housing affordability requires a multifaceted approach.
• State and local reforms are essential for increasing housing supply.
• Innovations like the K Deal program help manage credit risk in multifamily financing.

Link to David's Policy Proposal - https://www.urban.org/sites/default/files/2023-08/Addressing%20Rental%20Affordability%20by%20Increasing%20Multifamily%20Housing%20Supply.pdf

In this episode of Beyond the Ticker, Mauro Favini, a senior portfolio manager at Vanguard, shares his journey from Argentina to managing billions in emerging markets. He discusses pivotal moments that shaped his career, the importance of resilience, and the opportunities and risks in emerging markets. Mauro emphasizes the significance of risk management, understanding market reactions, and the impact of inflation and governance on investments. He also shares personal lessons on discipline and the importance of learning independently in the finance industry.

Key Takeaways

• Resilience is key in navigating volatile markets.
• Emerging markets present unique opportunities for active investing.
• Risk management is crucial for success in finance.
• Understanding market reactions can lead to better investment decisions.
• Inflation and currency pressures significantly impact emerging markets.
• Governance risk is a critical factor in evaluating corporate debt.
• Personal experiences shape investment strategies and perspectives.
• Learning independently is essential in the finance industry.
• Hope is not a viable investment strategy.
• Diversification helps mitigate risks in emerging markets.

In this episode of Beyond the Ticker, host Rishika Ranka interviews Giles Evans, a portfolio manager at DSM Capital Partners and former US Air Force officer. The conversation explores Giles' unique transition from military aviation to investment management, highlighting the challenges of networking and decision-making in high-pressure environments. Giles shares insights on contrarian investing, the importance of understanding industries deeply, and the dynamics of the aerospace sector, including supply chain issues and the future of urban air mobility. He emphasizes the value of simplicity and metrics in investment strategies, providing valuable advice for aspiring investors.

Takeaways

• Transitioning from military to investment management presents unique challenges.
• Networking is a crucial skill often overlooked in military training.
• Understanding risk versus reward is essential in investment decision-making.
• Teamwork and collaboration are vital in both aviation and investing.
• Contrarian investing involves questioning consensus and exploring what could go right.
• Identifying investment horizons helps in filtering out market noise.
• Simplicity in investment ideas can lead to better decision-making.
• The aerospace industry faces structural challenges post-COVID.
• Urban air mobility presents both opportunities and uncertainties.
• Metrics and quantifiable goals are key to successful investing.

In this episode of Beyond the Tickers, Paul Johnson, a leading expert in value investing, shares his journey from tech investing to academia. He discusses his investing philosophy, emphasizing the importance of mental models, earnings power value, and market implied value. Johnson also explores the role of passive investing in today's market, the impact of AI on finance, and the intersection of growth and value investing. He concludes with practical advice for young investors and insights from his extensive experience in the field.

takeaways

• Paul Johnson transitioned from tech investing to value investing after realizing the importance of valuation during the internet crash.
• He emphasizes the significance of mental models in understanding market dynamics and stock valuation.
• Earnings Power Value (EPV) is a key concept that helps investors assess a company's steady-state cash flows.
• Market Implied Value of Growth is derived from the difference between enterprise value and earnings power value.
• Passive investing is a major driver of market dynamics today, influencing stock prices significantly.
• AI can enhance the efficiency of analysts but won't replace the human element in investing.
• Value investing should focus on not overpaying for growth, distinguishing between cash flow growth and revenue growth.
• Understanding the duration of cash flows is crucial for assessing investment risks.
• Investors should prioritize long-term absolute performance over relative performance against indices.
• Young investors are encouraged to be curious, ask questions, and continuously learn about the market.

Links for Paul's recent webinars

1. Apple Webinar - https://shorturl.at/7pV2y

2. Chipotle Webinar - https://shorturl.at/t7hTz

3. YouTube Channel - https://shorturl.at/TtlZw

In this episode of the Wharton IM Club podcast, host Rishika Ranka speaks with Brent Robinson, co-founder of Value Creators Capital. They discuss Brent's unique journey from a Navy officer to an investment manager, his fascination with the stock market, and the challenges of launching a fund. The conversation delves into the differences between active and passive management, the importance of relationships in fundraising, and the complexities of compliance and legalities in fund management. Brent shares insights on investment strategies, sector allocations, and offers advice for aspiring fund managers

Highlights

• Brent Robinson's journey from Navy officer to investment manager is unique.
• The stock market's dynamic nature keeps investors engaged.
• Launching a fund today is akin to a modern gold rush.
• Fundraising for new funds is increasingly challenging.
• Active management is essential for a healthy market.
• Building relationships is crucial for successful fundraising.
• Compliance and legalities are complex but necessary in fund management.
• Starting a fund requires significant operational focus.
• Investment strategies should prioritize cash flow from operations.
• Warren Buffett remains a highly respected figure in investing.

Disclaimer: The views and opinions expressed by guests are their own and do not necessarily reflect those of the host or any affiliated institutions. Any specific securities, companies, or investments mentioned may be held in the guest’s portfolio or personal accounts. These discussions are for informational purposes only and do not constitute investment advice. Always conduct your own research before making any investment decisions.