How to Figure Out Position Sizing

Hey guys! This week is all about Post Bankruptcy Investing and we have Ferguson Cullen to show us his investing philosophy. He explained his concept of Subsidized Asymmetry, how he tries to not become an emotional Basket Case, investing in Peabody Energy, what are the red and green flags when you invest in bankruptcy ideas, how to find ideas and how he manages his portfolio, they exits and build a position.

• [0:00] Investing Journey
• [9:00] Using Social Media to Gauge Sentiment
• [15:00] Analyzing a Post Bankruptcy. Subsidized Asymmetry
• [23:00] Peabody Energy $BTU
• [26:00] Emotional Basket Case
• [32:34] Red Flags
• [38:00] Green Flags
• [41:00] Wrong Data
• [46:00] Finding Bankruptcy Ideas
• [51:00] Exiting a Position
• [56:30] Portfolio Construction: Sizing
• [1:05:00] More from Ferguson and Closing Questions

If you enjoyed the podcast, please follow Ferg on Twitter @trader_ferg. Also, check out his Substack here. 

Finally, a big thanks to the following sponsors for making the podcast a reality!

Mitimco

This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns to support MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.

For those looking to start a stock-picking fund or just looking to learn about how others have done it, I highly recommend the site. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers, and more!

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I spend nearly all my time reading Tegus calls on existing holdings and new ideas. And I know you will too. So if you’re interested, head on over to tegus.co/valuehive for a free trial to see for yourself.

TIKR

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