Chadd Garcia, Portfolio Manager and Senior Research Analyst at Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, joins the Yet Another Value Podcast for the first time to discuss DigitalBridge Group, Inc. (NYSE: DBRG), and why he finds there could be price dislocation in the global digital infrastructure firm.
Chapters:
0:00 - Introduction + Episode sponsor: $BYTE
2:23 - Overview of DigitalBridge Group, Inc. (NYSE: DBRG)
8:10 - Chadd's thoughts betting on CEO, Marc Ganzi, + background
12:38 - First part of the valuation argument, Chadd's describes the sum of the parts
18:17 - DigitalBridge investment summary so far + second part of the valuation argument (asset pitch), and what the sell-side is missing when they look at the asset value side of the business
26:30 - Thinking through the income statement and cash flow
29:38 - Updated guidance for 2023 and 2025: how does Chadd think about valuation with respect to this information
32:14 - Operating leverage
33:44 - Two acquisitions on the asset management business and their affect on D/E multiple
37:47 - Opportunity cost: Why choose DigitalBridge over alternatives?
40:02 - Addressing pushback on DigitalBridge 45:45 - Outlook on fundraising & acquisition environments
48:47 - Value catalysts for 2023
49:49 - Thinking the the DBRG's scaling potential
50:59 - Does Chadd Garcia think DBRG eventually branches outside digital infrastructure?
52:36 - DBRG's capital allocation strategy
55:45 - Marc Ganzi's payout incentive and how that affects investor sentiment/thesis on DBRG
1:01:04 - Closing thoughts on DBRG
For more information about Chadd Garcia and Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, please visit: https://www.schwartzinvest.com/investing-with-us/ave-maria-mutual-funds/
Today's episode is sponsored by: Roundhill IO Digital Infrastructure ETF – BYTE
Investing in the real assets that underpin our digital world has never been easier. We are pleased to bring you this podcast in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol - “B” “Y” “T” “E”. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte - read carefully. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing in BYTE. Distributor Foreside Fund Services, LLC: https://www.roundhillinvestments.com/etf/byte/
