Explore Michael Lefell's journey from law to investing, emphasizing the importance of research skills. Discover his success in private investments and philanthropy, along with his passion for woodworking and hockey. Reflect on investment ethos and life lessons from influential figures.
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Quick takeaways
Successful investing requires fundamental skills and exploring new areas gradually for outsized returns.
Creating an investment platform like 10 East involves aligning with the right partners, curating tailored portfolios, and staying intellectually engaged.
Deep dives
Michael LaFell's Background: From Retirement to Creating Investment Platforms
Michael LaFell, a former deputy executive managing member of Davidson Campner, transitioned from practicing litigation to investing due to the unenjoyable nature and long hours of litigation work. He joined MH Davidson and company, focusing on financial instruments of distressed companies. His early projects included modeling financials for bankrupt companies and finding opportunities in the savings and loan crisis. LaFell's focus on fundamental skills and gradual exploration into new areas led to successful investments in bank debt and unfunded revolvers.
Competitive Landscape and Investment Strategy
LaFell highlights the competitive landscape in the early years, emphasizing the club of investors and the importance of aligning with the right partners. His key learnings from Marvin Davidson include always seeking an advantage, reacting to changing dynamics, committing decisions in writing for accountability, and leveraging uncorrelated opportunities. The investment strategy revolves around extending core skills into new areas, taking measured steps, and maintaining a focus on fundamental diligence to drive outsized returns.
Launching Portage Partners and Canoe Intelligence
LaFell delves into the creation of Portage Partners, a family office aimed at compounding personal capital through cycles. The evolution of Portage into Canoe Intelligence stemmed from the need for tracking diversified alternative investments. Canoe's proprietary technology extracted valuable data from various documents, leading to a business-to-business opportunity in financial technologies. The success of Canoe Intelligence attracted blue-chip clients in the financial space, showcasing continuous growth and innovation.
Ten East: Broadening Investment Opportunities
The inception of Ten East, an investment platform, stemmed from the increasing demand for private investments among sophisticated investors. LaFell's vision for Ten East was to provide a community-driven ecosystem for curating alternative portfolios based on institutional-quality diligence. The focus on flexible options and choice aligns with the evolving landscape of private markets, ensuring that members can select tailored investment opportunities. LaFell emphasizes the importance of retaining intellectual engagement and alignment with members' preferences.
Michael Leffell is the Managing Member of Portage Partners, Chairman of Canoe Intelligence, and Founder and Chairman of 10 East, an investment platform for sophisticated investors to access private markets by co-investing alongside Michael. Michael was former Deputy Executive Managing Member of Davidson Kempner, where he spent twenty-one years before retiring in 2010. He formed a family office shortly thereafter and developed Portage, Canoe, and 10 East out of his investing activities. Our conversation covers Michael’s professional investment career, personal investing following his retirement, and businesses created from those activities. And a little disclaimer is in order: I’ve known Michael for about a decade, and after becoming impressed by the quality of 10 East’s offerings, its research process, and high-quality investment team, I became an advisor to the organization and an investor in multiple offerings.