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TIP669: Quietly Compounding at 20%+ Per Year w/ Derek Pilecki

8 snips
Oct 18, 2024
Guest
Derek Pilecki
Derek Pilecki, managing member and portfolio manager at Gator Capital Management, shares his journey in launching a financials-focused fund just before the Lehman Brothers collapse. He discusses achieving an astounding 21% annual return while navigating the 2008 crisis, including strategies like aggressive trading and focusing on undervalued stocks. Derek reveals why he's bullish on financial companies, highlights a remarkable 186% return in 2009, and discusses his top position in First Citizens Bancshares amidst current market conditions.
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ANECDOTE

Barely Surviving 2008

  • Derek Pilecki launched Gator Capital 10 weeks before Lehman Brothers collapsed.
  • He clawed back from a 29% drawdown by actively trading preferreds.
ANECDOTE

Fannie Mae Preferreds

  • Trading Fannie Mae preferreds helped Derek Pilecki recover in early 2009.
  • Their value increased sixfold in two weeks, boosting his fund's performance.
ADVICE

Savings for Aspiring Managers

  • Aspiring fund managers need five years of living expenses saved.
  • Building a track record and attracting capital takes time.
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