Value Investing with Legends Ricky Sandler - Investing Through Perception Shifts and Market Cycles
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Dec 19, 2025 Ricky Sandler, founder and CEO of Eminence Capital, shares insights from over three decades of long-short equity investing. He discusses how his upbringing and competitive tennis shaped his investing perspective. Sandler explains his unique investment philosophy focused on 'change in perception' and the importance of risk management, drawing lessons from the 1998 crisis. The conversation covers navigating market cycles, integrating data science into investing, and the implications of AI on analysis while expressing both concerns and optimism for the future.
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Formative Years Shaped By Finance And Tennis
- Ricky Sandler grew up on Long Island around finance and competitive tennis which shaped his investing mindset.
- He witnessed his father's experience through market crises and absorbed lessons about cycles and resilience.
1998 Crisis Forced A Risk Management Pivot
- In 1998 Ricky experienced a large drawdown at Fusion during the LTCM/Russia crisis that left him feeling defenseless.
- That episode drove him to build Eminence with stronger pre-planned risk management and hedging capacity.
Change In Perception Is A Key Return Lever
- Sandler's core framework evolved to focus on durable businesses and mispriced stocks driven by change in investor perception.
- He seeks both business compounding and stock re-rating as dual levers to generate outsized returns.