#220: Connor Haley - Founder of Alta Fox Capital Management
The Fort
Speculative Stocks
Hedge funds were shorting companies that in theory, they loved. Many of them lost a lot of money and i think that's kind of a tragedy. I don't love the idea of individual investors buying out of the money instruments on speculative stocks That are divorced from fundamentals.
Connor Haley founded Alta Fox in 2018 and is responsible for managing all aspects of the firm’s investment process and strategy. He has over ten years of investing experience and a passion for investing in small-cap equities. Before founding Alta Fox, Connor was an Analyst at Scopia Capital Management LP in New York. Connor is a top-ranked investor on MicroCapClub.com1 and a member of the ValueInvestorsClub.com. Connor was an active investor in college: he was the President of Harvard’s largest undergraduate financial club and led the club to its highest-ever annual return.
On this episode, Connor and Chris chat about how Alta Fox performs DD and reaches conviction on a new investment thesis, the benefits of activism and why it's more important than ever before, and the DNA of an exceptional business. Lastly, Connor shares his thoughts on the current investing landscape.
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Learn more about Alta Fox: Altafoxcapital.com
(01:53) - Connor’s Background and Career in Investing
(5:40) - Winning Investing and Trading Competitions at Harvard
(8:33) - Connor’s Hedge Fund Experience in College
(10:25) - What did working on the trading floor do to shape your knowledge in investing?
(11:45) - What is your investment philosophy?
(13:29) - Activist Investing
(15:02) - Alta Fox
(16:13) - What does a typical day look like for you?
(17:57) - How do you know what to focus on?
(22:39) - How quickly do you get to a “no”?
(24:40) - Are you contacting a management team before buying their stock?
(25:51) - Do public companies have to take a meeting with you?
(27:47) - How do you rank your priorities for investments?
(29:53) - How many ideas are you usually working on at a given time?
(31:25) - Do you have Billions-style idea meetings?
(32:18) - What categories are you weighing your decisions on?
(34:17) - What are some common characteristics of great CEO’s?
(37:59) - What is Capital Allocation and what makes someone good at it?
(41:30) - What’s your goal once you’ve decided to buy stock in a company?
(44:18) - How long do management calls usually last and do you have a favorite thing to ask them?
(47:14) - How has the size of your business and focus changed over the years?
(50:37) - How do you decide to sell stocks in your portfolio?
(54:09) - What was going through your mind during the first 30 days of Covid?
(58:07) - Deep Dive on Activism
(1:06:23) - Thoughts on ESG
(1:08:45) - How are you thinking about the market right now?
(1:11:30) - How do you think we can curb inflation?
(1:12:55) - What do you think Warren is thinking right now?
(1:14:06) - Do you have an investing idol?
Joel Greenblatt's Columbia Business School Notes on Investing
(1:16:54) - Why did you choose Fort Worth to run your Hedge Fund?
(1:19:29) - Connor’s Case Studies
(1:21:47) - Thoughts on Trading Options
(1:23:20) - What is cheap vs. expensive volatility?
(1:24:26) - Betting Against Warren Buffet on Hedge Fund Performances
(1:26:33) - Thoughts on the Meme Stock Revolution
(1:31:55) - Connor’s Distaste for sushi
(1:32:39) - How can people find you?
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