Capital Allocators – Inside the Institutional Investment Industry 2022 Top Episode #4: Rob Citrone – Emerging Markets, Hedge Funds, and Staying in the Game, EP. 261
Dec 27, 2022
Rob Citrone, the founder of Discovery Capital Management, shares his wealth of knowledge on hedge funds and emerging markets. He reflects on his early experiences at Fidelity and Tiger Management, offering valuable lessons from market crises. The discussion dives into the impact of inflation and debt in emerging economies, highlighting the U.S. dollar's significance. Citrone also shares insights on investment strategies, portfolio management, and the importance of communication within teams, providing a rare glimpse into the mind of a seasoned investor.
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Early Investing Interest
- Rob Citrone's early interest in investing stemmed from observing high interest rates in the late 1970s.
- This led him to explore money market funds, mutual funds, and eventually, individual stocks.
1987 Crash Experience
- Citrone witnessed the 1987 market crash firsthand, observing the shock and subsequent rapid recovery fueled by the Fed's liquidity injection.
- He contrasts this with the current market situation where inflation limits the Fed's ability to intervene similarly.
EM vs. US in Crisis
- Unlike the US, emerging markets (EM) often face debt crises following currency devaluation.
- The US has the advantage of its currency being the world's reserve currency, offering more flexibility.