Create More Value

Our conversation with David Berkowitz, founder and CIO of Value Aligned Partners, covers investment strategies that focus on long-term value creators. Greg and David discuss the inefficiencies of the “earnings game,” aligning management incentives with shareholder interests, and how to identify high-quality companies with sustainable competitive advantages. Berkowitz outlines three investment strategies: ownership companies with strong incentive structures, “cannibal” companies with high share buybacks, and dominant monopolistic or oligopolistic firms. He also compares public and private equity investment approaches, emphasizing behavioral economics and value-focused operating systems. In addition to being an investor, David conducts corporate finance education and value-based management training for corporate professionals and board members.

Garrett Delph, founder and CEO of Clarity Ops LLC, shares his journey from leaving corporate America to scaling multiple companies to over $50M in revenue. He introduces his operational strategies, including the FAST solution system, the Quad Core Management Framework, and P3 (People, Process, and Performance). Garrett explains how these frameworks optimize business operations by addressing inefficiencies, emphasizing leadership load balancing, and improving processes to enhance organizational culture and performance. He also discusses the unique perspective an outside advisor can bring and the value of external insights in overcoming business challenges.

James Pappas discusses his journey from the family restaurant business to consumer and retail finance roles at Goldman Sachs and Bank of America to founding an activist investor firm. However, his firm, JCP Investment Management, differs from most activists in a few ways. He differentiates his approach as “growth activism,” which focuses on sustainable growth opportunities over more typical activist approaches like cost-cutting or corporate break-ups. Crucially, Pappas stresses the importance of customer-centric strategy, clarity on objectives, and optimizing capital structures. He embraces a collaborative approach aimed at long-term guidance and getting the right people in place to foster long-term success. James has sat on nine public company boards, including Jamba Juice, United Natural Foods, US Geothermal and The Pantry, by way of example. Pappas explains how his entrepreneurial background in finance and in the family restaurant business shaped his expertise in operations and capital management. 

Former Univar CFO and veteran of the chemical industry, Carl Lukach, discusses CFO strategy and financial leadership best practices. Carl emphasizes the importance of a “playbook to win”—a structured approach to strategy inspired by Roger Martin's Playing to Win. He also covers the CFO’s role in competitive strategy, highlights the importance of building a high-performance team, and advocates for collaboration and breaking down silos within finance functions. Carl is currently an advisory director at CVC Capital Partners, a senior advisor at TorQuest Partners, and a board member at Xypex Chemical Corporation. He was formerly CFO of Univar solutions and a 30-year veteran of Dupont in various finance and commercial leadership roles. In 2019 he was FEI Chicago’s public company CFO of the year.

Brian Tomlinson of EY argues that sustainability is a long-run driver of shareholder value. Brian and our host, Greg Milano, explore how boards and managements can measure, reward, and communicate their sustainable business practices. While noting that contemporary ESG metrics can pose certain challenges, the discussion underscores the growing importance of these financial disclosures in attracting committed long-term shareholders. Brian also covers global ESG reporting developments, including the EU’s Green Deal and strict regulatory standards—and contrasts this unified approach with the U.S.’s fragmented regulatory landscape. Brian is Managing Director of ESG at EY and was formerly Director of Research for Chief Executive for Corporate Purpose’s CEO Investor Forum.

Ken Fisher, CFO of Champion X, discusses his extensive career in finance and leadership roles across industries, including his time at Noble Energy, Shell, and GE. Ken shares lessons on strategy development, execution, and working capital management that are vital for new and aspiring CFOs. His insights highlight the value of diverse experiences, such as handling growth and restructuring in various sectors like industrials and energy. He emphasizes the importance of focusing on both the income statement and balance sheet to improve cash flow and business efficiency. The episode also touches on Ken's experiences in M&A, investor relations, and the challenges facing a public company CFO.

Professor Shiva Rajgopal addresses common shortcomings in financial reporting frameworks, highlighting a lack of transparency on key metrics, costs, and disclosures, which can frustrate investors. Rajgopal suggests companies should take their reporting a step further and improve how they communicate their value drivers, competitive advantages, and segment performance to attract sophisticated, long-term shareholders. He also calls for reforms by regulatory bodies and greater accountability from boards and management to yield better insights into how companies leverage tangible and intangible assets to create value. Shiva is Professor of Accounting and Auditing at Columbia Business School and is an expert in financial reporting, executive compensation and corporate culture. His research is frequently cited in many publications, including The Wall Street Journal, Bloomberg, Fortune, Forbes, Financial Times, Business Week, and the Economist.

Michael Levin, experienced investor, consultant, and creator of The Activist Investor website and newsletter, explains how activists determine targets, honing in on governance issues, capital allocation, and executive compensation. Michael also covers how activists advance their agenda to unlock more value.

Fortuna’s Greg Milano talks capital and resource allocation best practices and highlights pitfalls, such as overinvesting in underperforming businesses and relying on misleading metrics. An objective, value-oriented approach is an underappreciated source of competitive advantage for corporate teams—and a proven driver of sustained returns for shareholders.

Bennett Stewart, the “father of EVA” was co-founder of Stern Stewart and a leader in the shareholder value movement. He explains how EVA revolutionized performance measurement corporate governance and empowered better value management. He discusses the measure’s application in major companies like Coca-Cola and General Motors and how it helped them drive a focus on true value creation.