This week on the Value Perspective we’re delighted to be joined by Jim Osman. Jim is the founder and Chief Vision Officer at The Edge, a research firm dedicated to identifying and analysing unique investment opportunities, with a particular focus on spin-offs, demergers and distressed credit opportunities. With decades of experience in equity research and portfolio strategy, Jim has built a reputation for delivering deep, actionable insights to investors. In this episode we discuss; the intricacies of spin-offs, and what makes them such a compelling area of focus; what The Edge is and what makes research in spin-offs so crucial; the role of incentivised management teams in driving the success of spin-offs; why the US market is particularly fertile for spin-offs compared to other regions; which sectors tend to perform best in the spin-off space; and finally, how AI might shape the future of special situations’ investing. Enjoy! NEW EPISODES: We release main series episodes every two weeks on Mondays. You can subscribe via Podbean or use this feed URL (https://tvpschroders.podbean.com/feed.xml) in Apple Podcasts, Spotify, Google Podcasts and other podcast players. GET IN TOUCH: send us a tweet: @TheValueTeam  Important information. This podcast is for investment professionals only. Marketing material for Financial Professionals and Professional Clients only.  The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions.  Past Performance is not a guide to future performance and may not be repeated.  Diversification cannot ensure profits or protect against loss of principal.  The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of investments to fall as well as rise.  Investing in emerging markets and securities with limited liquidity can expose investors to greater risk.  Private assets investments are only available to Qualified Investors, who are sophisticated enough to understand the risk associated with these investments.  This material may contain “forward-looking” information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised.  Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. The views and opinions contained herein are those of the individuals to whom they are attributed and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.  Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data.  

Jake Taylor, a seasoned value investor and author of "The Rebel Allocator," returns to share his insights on evolving in the investment landscape. He highlights the importance of listening during times of social isolation and discusses the intriguing business of chicken sexing as a metaphor for trusting intuition. The conversation also touches on the psychological safety of holding cash and connections between the shipping industry and active management. Finally, Jake reflects on life's limitations and the importance of purposeful living.

Madison McCall, an active product specialist at Vanguard since 2017, brings her journalism background to the forefront of fund management. She discusses what it means to have an edge in fund research and the significance of the 4P framework. The conversation dives into why patience is essential in investment strategies and how Vanguard views the ongoing debate between active and passive investing. Madison also emphasizes the crucial distinction between compelling narratives and factual performance metrics in evaluating asset managers.

This week, Eva Chang, the co-founder and CEO of Legalist, shares her journey from dropping out of Harvard to leading a pioneering firm in litigation finance. She discusses how Legalist uses technology, including AI, to transform funding in this niche market. Eva delves into the complexities of patent litigation and how investors approach this unique asset class. She emphasizes the delicate balance between high-risk litigation finance and more stable investments like government receivables, all while navigating the unpredictable landscape of entrepreneurship.

Swen Lorenz, Founder and CEO of Sarnia Asset Management and creator of the Weird Shit Investing Conference, shares his journey from teen investor to asset manager. He delves into niche investment strategies often ignored by larger firms and discusses the unique pitches showcased at his conference. Swen also emphasizes genuine networking in finance and paints a picture of global investment landscapes, contrasting approaches across the U.S., Europe, and Asia. Tune in for insights on innovative thinking and the evolving world of value investing!

Stephen Clapham, a distinguished analyst and author of 'The Smart Money Method,' shares invaluable insights gained from his extensive experience in finance. He highlights the critical importance of accounting skills in asset management and critiques traditional training programs. Clapham discusses the pitfalls of relying on probabilities in earnings estimates, advocating for presenting data in ranges to convey uncertainty. He also reflects on managing information overload in investing while emphasizing the balance between narratives and hard facts in company evaluations.

Stacy Havener, Founder and CEO of Havener Capital Partners, discusses the art of branding in asset management, highlighting her consultancy's focus on storytelling and personal branding. She tackles challenges investors face in embracing branding, the industry's fixation on performance, and introduces the four A’s framework. Havener emphasizes the importance of building genuine relationships on LinkedIn and the power of vulnerability in personal branding. The conversation also touches on philosophical perspectives in asset management and festive traditions, blending insights with holiday cheer.

Adam Rozencwajg, co-founder of Goehring & Rozencwajg, and Django Davidson, founding partner of Hosking Partners, dive into deep value investing in materials and commodities. They discuss integrating real option value and Bayesian thinking into investment strategies. The conversation highlights the importance of commodities in the electric vehicle landscape and the cyclical nature of markets. Special focus is placed on inventory analysis, particularly in the uranium sector, and the complexities of the Platinum Group Metals industry.

Khaled Said, co-founder of Capital Generation Partners, brings a wealth of expertise in managing family and endowment capital. He dives into the dynamics of family offices and the importance of teamwork and trust in wealth management. Khaled shares insights on balancing wealth preservation with growth, the psychological biases that impact investment decisions, and the nuances of Eastern versus Western family office practices. His unique client perspective advocates for high standards in investment strategies, aiming to empower families across generations.

In this discussion, Alex Roepers, Founder and Portfolio Manager at Atlantic Investment Management, shares his vast experience in value investing spanning nearly four decades. He reflects on his journey from the Netherlands to New York, highlighting the evolution of his investment strategy. Alex contrasts his concentrated portfolio approach with broader market trends and emphasizes the importance of engaging constructively with company management. His memorable analogies to sailing and the Tour de France bring a unique perspective on patience and strategic decision-making in investing.