Compounders Podcast Hunting for Undervalued Compounders in Asia with Dan Rupp, Founder and CIO of Parkway Capital
Nov 20, 2024
Dan Rupp, Founder and CIO of Parkway Capital, brings his Asia-focused investment expertise to the conversation. He dives into the potential of smaller-cap companies and why he's optimistic about the Chinese market. Rupp discusses the unique portfolio composition of Compounders and Defensive stocks, while also making a case for Haier, a Chinese white goods manufacturer. He shares insights on strategic fund management, highlighting the importance of capacity limits, and reveals his approach to navigating undervalued assets in Asia.
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Overlook's Success
- Dan Rupp worked at Overlook, founded in 1991 by Richard Lawrence.
- Lawrence achieved 11.5% net returns over 30 years, outperforming the S&P.
Leaving Overlook
- Rupp left Overlook due to limitations on investing in smaller, less liquid opportunities.
- Overlook's large AUM restricted investment in illiquid, smaller-cap Asian companies.
Asia's Unique Opportunities
- Asia offers diverse securities like preferred shares in Korea and B shares in China, often trading at discounts.
- These discounted securities offer higher yields and lower valuations, compensating for lower liquidity.