How I Followed Genworth for Eight Years Before I Saw the Opportunity

I own Genworth from 2012 to 2014. And then it kind of went off into the wilderness and was trying to get acquired by a Chinese insurance company. So I waited eight years to buy the stock back. It bounced between three and four bucks from 14 to 2020. They were talking about buyback stock. The deal had fallen through finally. But there's still a question of whether that life insurance subsidiary is solid, even if they've raised prices $23 billion. There's some real upside, but it's going to take a long time before we get any cash flow out of them.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Derek Pilecki stops by The Business Brew to discuss Financials. Derek is a Financials specialist with a track record that speaks for itself. See https://gatorcapital.com/ for more information.

Derek currently manages a long/short financials strategy, long-only financials strategy, and various other individual portfolios. He has managed a private fund for 11 years. He also launched one mutual fund and took over management of another mutual fund.

From 2002 through 2008, Derek was a member of the Goldman Sachs Asset Management (GSAM) Growth Equity Team (Co-Chair of the Investment Committee for the Growth Team and a Portfolio Manager).

Prior to GSAM, Derek was an Analyst at Clover Capital Management in Rochester, NY and Burridge Growth Partners in Chicago, IL. He covered the Financials sector at both firms. Before entering graduate school, Derek worked at Fannie Mae providing interest rate risk analysis for the company’s mortgage investment portfolio.

Derek holds an MBA with honors in Finance and Accounting from the University of Chicago and a BA in Economics from Duke University. He is also a CFA® charterholder.

Sponsor Info:

⁠⁠Daloopa ⁠⁠is founded by a former hedge fund analyst to bring simplicity into the investment process. ⁠⁠Daloopa ⁠⁠offers an AI driven single source for all company reported data, and allows for investment teams to ake the most informed decisions in the shortest amount of time. ⁠⁠Daloopa ⁠⁠scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. ⁠⁠Daloopa ⁠⁠captures data from all company reported sources, including from footnotes, MD&As, and investor presentations. Our data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. ⁠⁠Daloopa’s ⁠⁠Excel plugin can also update your existing models for the latest quarter in just a single click.

Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.

Visit ⁠⁠⁠Daloopa.com/BusinessBrew⁠⁠⁠ to create a free account and learn more about how ⁠⁠Daloopa ⁠⁠can help increase your team’s speed to differentiated insight.

Detailed Show Notes:

3:38 – Derek’s background

6:54: - How Derek defines Financials

7:12 – Thoughts about Silicon Valley Bank

13:08 – Was it rational for regulators to ignore mark to market losses?

21:03 – What is going on with office and how big of a deal is this going to be?

25:08 – Is there an opportunity in regional banks?

29:45 – Mortgage REIT preferreds

33:15 – How much of a Financials analyst’s job is focusing on the consumer and macro?

36:35 – A discussion about First Republic’s failure

41:45 – Thinking about constructing a long/short portfolio within a sector

44:45 – Why Genworth, why now?