Trader Ferg: Investing in Post-Bankruptcy Energy Plays

Mar 17, 2023

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ANECDOTE

Ferg's Background

Fergus Cullen's background is in asset management, starting with shopping centers.
He transitioned to trading after meeting his mentor, Brad, who specializes in contrarian investing.

INSIGHT

Contrarian Investing

Brad's investment strategy focuses on the most hated market sectors, often leading to post-bankruptcy plays.
This approach provides opportunities for asymmetry and reduces risk by focusing on fundamentally sound companies.

INSIGHT

Social Media Sentiment

Social media, particularly Twitter, can gauge market sentiment and test investment ideas.
Negative feedback on contrarian plays can be a positive signal.

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Hey guys! This week is all about Post Bankruptcy Investing and we have Ferguson Cullen to show us his investing philosophy. He explained his concept of Subsidized Asymmetry, how he tries to not become an emotional Basket Case, investing in Peabody Energy, what are the red and green flags when you invest in bankruptcy ideas, how to find ideas and how he manages his portfolio, they exits and build a position.

[0:00] Investing Journey
[9:00] Using Social Media to Gauge Sentiment
[15:00] Analyzing a Post Bankruptcy. Subsidized Asymmetry
[23:00] Peabody Energy $BTU
[26:00] Emotional Basket Case
[32:34] Red Flags
[38:00] Green Flags
[41:00] Wrong Data
[46:00] Finding Bankruptcy Ideas
[51:00] Exiting a Position
[56:30] Portfolio Construction: Sizing
[1:05:00] More from Ferguson and Closing Questions

If you enjoyed the podcast, please follow Ferg on Twitter @trader_ferg. Also, check out his Substack here.

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