Protect the Pile: A Hedgeye Asset Management Podcast | Episode 1

Nov 1, 2025

The hosts dive into the surge in AI spending, examining whether this financial boom is sustainable or just circular financing. They discuss the potential breakout of small caps thanks to expanding AI infrastructure. A surprising take on credit market risks highlights hidden dangers, while a reality check on market volatility offers insights for positioning. With anecdotes from their experiences, they emphasize long-term thinking in investing and the need to adapt to shifting technology landscapes.

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ANECDOTE

Crisis Meeting That Cemented Long-Term Focus

Sam Rotman walked into Ned Johnson's office in December 2008 expecting to be fired and instead discussed a five-year plan.
That meeting taught him the value of long-duration capital and focusing on future opportunity over short-term panic.

ANECDOTE

Conference Lesson On Rate Of Change

Patrick Kent attended his first healthcare conference and copied notes from a famous hedge fund manager.
He learned that great analysis watches the rate of change and the rate of change of the rate of change.

INSIGHT

AI Spending Is Part Strategy, Part Signaling

Sam argues AI financing optics worry some but many commitments are aspirational not legally binding.
He sees heavy game theory effects as big players freeze supply and compel rivals to match spending.

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"Flirting with All-Time Highs: AI Spending, Small Cap Hope, and Things That Go Bump in the Night"

Welcome to the inaugural episode of Protect the Pile, the investment show where real money managers talk real markets.

With the S&P 500 and Nasdaq flirting with all-time highs (up 16% and 23% YTD respectively), the Hedgeye Asset Management team breaks down what's working, what's worrying, and what's worth watching as we head into year-end.

What We Cover:

Market Landscape: Why global markets are outperforming on a constant currency basis, and what tight high-yield spreads really tell us
AI's Drunken Sailor Spending: Hundreds of billions flowing into 2026. Is this sustainable or circular financing in disguise?
Small Caps' Long-Awaited Moment?: Could Russell 2000 finally break out and benefit from AI infrastructure spending?
Credit Market Surprises: What Jamie Dimon's "cockroaches" comment reveals about hidden risks
Volatility Reality Check: Why the VIX settling into the "investable bucket" matters for positioning

Plus, we share formative investment lessons from 30+ years of combined experience, including a near-firing story from December 2008 and why the best investors admit their biggest mistakes.

Quick Hits:

New updates made to our volatility of volatility calculations within the Capital Allocation systematic approach
Real-time data points on AI infrastructure demand (spoiler: AWS is maintaining prices on 3-generation-old chips)

Protect the Pile is a no-nonsense investment show where we cut through the market noise with a panel of seasoned practitioners who've been playing the game every single day for years—not theorists, but real money managers with skin in the game. Every episode, we bring together battle-tested investors to dissect the current landscape, debate the opportunities and risks, and help you navigate the markets with the Hedgeye framework. It's not Old Wall media, it is real-world experience, focused on one goal: protecting and growing your pile.

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