In the podcast, Andy Mitchell of Lantern Asset Management discusses the importance of cash liquidity and maintaining a company's status quo when dealing with distressed assets.
The podcast highlights the challenges in valuing cryptocurrencies and venture capital investments, but also suggests potential opportunities for buyers in some of Alameda Research's investments.
Deep dives
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The podcast episode introduces Michael Lewis' upcoming book about the crypto exchange FTX and its founder Sam Bankman-Free. The book is titled 'Going Infinite: The Rise and Fall of a New Tycoon' and is scheduled to be published on October 3rd, 2023. Lewis takes readers on a quest to understand who Sam Bankman-Free is, what motivated him, and what his rise and fall means for the rest of us. The book explores Bankman-Free's rebellious personality and how he challenged conventional rules in his own unique way.
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The podcast episode delves into interviews with Andy Mitchell, founder of Lantern Asset Management, to discuss his experience with distressed assets and turnarounds. Mitchell shares insights on how his firm approaches troubled companies and the factors that lead them to get involved. He emphasizes the importance of cash liquidity and the ability to maintain a company's status quo. Mitchell also illustrates his experience with troubled businesses such as Interstate Bakeries and the Weinstein Company, highlighting the strategies employed to fix them and the challenges faced along the way.
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The podcast episode focuses on the bankruptcy and potential future of FTX. The valuation of FTX and its underlying assets is considered a major challenge due to the volatility and difficulty in valuing cryptocurrencies and venture capital investments. Mitchell suggests that rebuilding trust and regaining confidence in FTX will be a long and arduous process. While the exchange may struggle to recover, Mitchell speculates that some of the investments made by Alameda Research, the venture capital arm of FTX, may still hold value and pose potential opportunities for a buyer.
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Mitchell reflects on the perception of his work as an opportunistic capitalist and emphasizes that his approach is driven by a belief in effective altruism. He argues that reviving distressed assets has a noble aspect to it, as it involves restoring value to companies that have fallen into difficulty. Mitchell acknowledges the criticism that often comes with his line of work and the tendency for people to question the ethics of making money from distressed situations. However, he stands by the belief that his efforts ultimately contribute to creating positive outcomes for various stakeholders involved.
Andy Mitchell could be called a "doctor for business." His firm, Lantern Asset Management, buys up businesses in immediate need of cash and willing to sell at bargain-basement prices. Michael Lewis calls up Mitchell to get the "distressed asset" angle on the company at the center of Lewis's next book: the now extremely distressed crypto exchange, FTX. But along the way, we hear about other businesses on the skids, including the maker of Twinkies, and the Weinstein Company.
Head to atrpodcast.com and submit a question for Michael to answer in an upcoming episode.
