Drawdown
topic on 2 shows · 4 statements across 4 episodes
Invest Like the Best 
Capital Allocators
4 statements about Drawdown, every show
Baker: Drawdowns Are Either Flawed Theses or Opportunities for Pent-Up Alpha
“There are drawdowns where you're wrong, a company missed estimates, your hypothesis was invalidated, and you have to take your medicine and you crystallize that loss. And then there are drawdowns or periods of underperformance where you're underperforming beca…”
Charles: Private equity drawdowns doubled to $40B and NAV tripled in five years
“Over the last decade, while distributions have been very consistent at 40 a quarter, Drawdowns have doubled to 40, and NAV has tripled in the last five years, so the yield has just nosedived.”
Braga: Unwinding during drawdowns stems from poor upstream risk sizing
“Career-wise, in the running of the various strategies that we have run over the years, the mistakes that I have made, which I regret, have Almost all of them probably being related to unwinding strategies in the drawdown. Then you say, okay, what is the mistak…”
Greenblatt: Concentrated portfolios face 20% to 30% drawdowns every couple years
“When you run such a concentrated portfolio, every couple of years, there are a few days where you lose 20 or 30% of your assets because one or two of your ideas aren't going your way. And that's just part of the way it works.”