Capital Allocators – Inside the Institutional Investment Industry Rob Small and Anil Seetharam - Public Equity Adjacent to Private Equity at Stockbridge (EP.397)
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Jul 22, 2024 
Rob Small and Anil Seetharam, Managing Directors and founding members of Stockbridge at Berkshire Partners, share their journey in concentrated public equity management. They discuss the collaborative strategies between public and private equity teams, highlighting key decision-making processes and the unique challenges of portfolio management. The duo also reflects on their learnings over 17 years, emphasizing the importance of mentorship, efficient practices, and personal experiences that shape their investment philosophies.
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Private Equity vs. Public Markets
- High private equity prices, fueled by leverage, created an opportunity in public markets.
- Stockbridge noticed private companies valued higher than public counterparts, despite similar businesses.
Building a Public Equity Effort
- Build your public equity efforts in-house instead of acquiring external teams, fostering collaboration.
- Focus on investment strategies where your existing skills provide an advantage.
Focus on Strengths
- Resist market pressures and stick to your investment strengths, even if they're not currently popular.
- David Swenson advised Berkshire to prioritize what they could excel at, leading to their concentrated, long-only strategy.