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Insightful Investor

#5 - Brian Higgins: Risk, King Street, Outlook

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.
01:14:37

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Podcast summary created with Snipd AI

Quick takeaways

  • Brian Higgins emphasizes the importance of humility and constant learning in the investment world to manage losses effectively.
  • King Street prioritizes a multidimensional risk management approach, focusing on factors like liquidity, rate risk, and spread risk for delivering absolute returns.

Deep dives

Brian Higgins' Background and Investment Philosophy

Brian Higgins grew up in an environment surrounded by Wall Street and was attracted to the idea of working in a field where he could gain a deep understanding of markets and put things into perspective. His curiosity was fueled by the economic and geopolitical changes he witnessed during his formative years. His early experience in the merchant banking department exposed him to the opportunities and volatility of the credit market, particularly in high-yield securities. Higgins' investment principles were shaped by the market crashes of 1987 and the subsequent financial stress experienced by First Boston. These early experiences taught him the importance of risk management and the need to constantly question and reassess investment decisions.

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