Answered raw tape
D 5 · C 5 · P 4 · Cm 4 4.60
Q And what was that style when you first started Third Point? What did you, what was that expression?
A That was, well, I think, you know, we call it event-driven investing. It was really less focused on the quality of business, more focused on very complex transactions, takeovers, spinoffs, risk, risk or arbitrage, bankruptcies, privatizations, demutualizations, and these transactions created unbelievable opportunities for Alpha because of the confluence of Dislocation, opacity, kind of time, but also, this goes, and nothing changes, and I always quote this Jesse Livermore line, there's nothing new under the sun, a real focus on management incentives. So in all these different kinds of transactions, management was incentivized to sandbag their numbers during a time when there was an excess supply of securities, where their options were being set, and we as co-investors got to come in with these Depressed projections and ride along not just the, um, well, we got to ride along a few different things that would happen. Greater transparency and understanding of the business, coverage, uh, companies that That delivered a top line and margins and ROE and everything else better than expectations. So it was really a golden era for that type of investment.
AI assessment note: “we call it event-driven investing. It was really less focused on the quality of business”
Answered raw tape
D 4 · C 3 · P 4 · Cm 3 3.55
Q short side in the market right now for the first time in a long time. How do you start top-down? Is it, is that a top-down or is it an opportunistic, you know, something comes across the wire and you guys jump on it in kind of an event-driven way, or do you guys have kind of a systematic top-down approach to looking at the market and finding those opportunities?
A Yeah, there's no one Approach to it. I think one thing that we've avoided is kind of evaluation, a solely valuation based approach. There's a, I've just seen I've seen too many people get run over by shorts that have dumb valuations, but they get captured on, you know, Reddit or one of these other things, and they just get their, you know, or like some of these space companies right now that there's no rhyme or reason. We had, ah, a really strong view on home builders from last year that, ah, there were two things going on. It wasn't just It wasn't just rates, mortgage spreads that were depressing housing prices, that home prices, that the home building industry was first structurally, um, impaired because of the way that they were all pretending to be NVR, which is they all pretending to be asset light, but they had massive commitments to these land pools, which in, in things that they said were options, but they were really very committed in the capital and that that value was going on. But But that the, um, the home building industry was really the last industry that had this post-COVID hangover of inventory disruptions and, and pricing, um, pricing that really made no sense. You know, you had all those prices went up to unsustainable levels, but so did, um, building costs went up and, and buyers are no longer able to pay those prices at the current, current, um, Uh, in the …
AI assessment note: “there's no one Approach to it. I think one thing that we've avoided”
