Capital Allocators – Inside the Institutional Investment Industry #4: Yen Liow – The Quest for the Right Tail at Aravt Global, EP.188
36 snips
Dec 27, 2021 
Yen Liow, Founder and Managing Partner of Aravt Global, shares his investment journey from Ziff Brothers Investments to his own firm. He discusses the intricacies of long-short strategies, emphasizing the art of short selling and the significance of portfolio construction. Yen highlights three 'right tail' strategies for long positions and the importance of navigating market inefficiencies. With insights about cultivating a winning mindset and the challenges of volatility, this conversation is a treasure trove for public equity enthusiasts.
AI Snips
Chapters
Books
Transcript
Episode notes
Investment Approach at Aravt Global
- Yen Liow’s investment approach at Aravt Global involves three right tail strategies for long positions and an art to short selling.
- The discussion also covers portfolio construction, game selection, and drivers of success in public equity investing.
Focus on Earnings Power
- Focus on earnings power as the primary driver of long-term returns, not short-term multiple fluctuations.
- Develop systems to visualize and track earnings power to maintain patience and avoid impulsive decisions.
Short Selling Strategy
- Short selling focuses on delivering consistent alpha rather than chasing high-risk, high-reward left-tail events.
- Target the second quartile of consistency, avoiding the dangerous first quartile.
