Insightful Investor #5 - Brian Higgins: Risk, King Street, Outlook
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Jan 30, 2024 Discover how Brian Higgins built one of the industry's premier hedge funds with insights on risk management and market outlook. Explore his financial journey from Wall Street influence to credit opportunities, and his approach to embracing challenges and constant growth in business. Learn about navigating investments with a focus on downside protection, global perspective, and credit market dynamics.
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Early Career Experiences
- Brian Higgins' early career was shaped by the 1987 Black Monday crash and the subsequent market volatility.
- Witnessing companies like Drexel Burnham go bankrupt instilled in him the importance of avoiding complacency and accurately pricing risk.
Short-Long Investing
- King Street Capital prioritizes downside protection and generating equity-like returns from fixed income.
- Their approach is agnostic, viewing themselves as "short-long" investors, emphasizing the importance of short selling in their strategy.
Granular Risk Management
- Risk management at King Street is granular, focusing on individual securities and their underlying risks.
- They emphasize the importance of understanding liquidity, especially during market downturns, and discounting for size and credit risk.