Capital Allocators – Inside the Institutional Investment Industry

Ricky Sandler - Evolution of Long-Short Equity Investing (EP.414)

Oct 28, 2024

Ricky Sandler, CEO and CIO at Eminence Capital, is a pioneer in long-short equity investing, managing over $7 billion. He shares insights from his three-decade journey in finance, discussing the evolution of long-short strategies and the critical adaptations necessary in changing markets. Sandler emphasizes the importance of a collaborative culture and the challenges of short selling in today's volatile environment. He also touches on valuable lessons from sports, highlighting personal growth and the significance of well-being in both life and investing.

01:05:35

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Episode guests

Ricky Sandler

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Quick takeaways

Ricky Sandler's journey from launching a hedge fund in his twenties to becoming CEO of Eminence Capital illustrates the evolution of long-short equity investing.

Eminence Capital's organizational culture and adaptability are crucial for thriving amidst market changes and addressing the complexities of investment strategies.

Sandler highlights the need for rigorous risk management and diversification in short selling due to increased stock volatility and unpredictable market behavior.

Deep dives

10 East and Investment Opportunities

The discussion highlights the services of 10 East, an investment platform offering sophisticated investors access to private markets. This platform provides the advantages of having a family office without the associated costs, allowing members to co-invest alongside seasoned professionals like Michael LaFell. Members benefit from exposure to diverse investment opportunities, including private credit, real estate, and niche ventures, which are usually inaccessible via traditional investing channels. With over a decade of experience in this space and a strong track record across numerous transactions, the team emphasizes thorough research and continuous monitoring post-investment.

Intro

3min

Exploring Capital Allocation and the Evolution of Investing Strategies

3min

A Lighthearted Bet and Future Aspirations

1min

From Family Finance to Strategic Investing

27min

Evolving Market Dynamics

8min

Navigating Short Selling and Team Dynamics

21min

Lessons from Sports: Health, Competition, and Personal Growth

4min

Reflections on Influence and Personal Growth

2min

Ricky Sandler is one of the OGs of fundamental long-short equity investing. Ricky started managing a hedge fund thirty years ago and founded Eminence Capital a few years later. Today, he is the CEO and CIO at Eminence, where he oversees $7 billion across long-short, long-only, and long-extension strategies.

Our conversation covers Ricky’s path to launching Eminence in his twenties and the evolution of long-short investing in the decades since. We dive into Eminence's culture, adaptation in the investment process, and creation of investment products to meet the needs of allocators, each of which has been an essential part of the firm’s ability to survive and thrive amid changing market dynamics.

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