Adam Karr, President and Portfolio Manager at Orbis, discusses how the firm cushions multi-year periods of tracking error and zero performance fees.
0:00 / 0:13exact quote · 13.5s
720p mp4 · rendered on demand · StarZero watermark
“We've been quite conservative in that, and it's going to depend because we've got clients across the globe
And they're on different fee structures and they're not on exactly the same fees.
So there's a mix in there, but it's more than a handful of years.”
quote is from the automated transcript, cleaned for reading:
filler sounds and stutters are removed, nothing is rephrased. names can be misheard
(the analysis reads context, assessments check outside sources). how →
More from Adam Karr
AssertionSupported
Fleetcor's European EV charging business has better economics than fuel cards
“We can look at their business in Europe and we can see clearly that the economics on that are actually on par, in fact, better than their core combustible business.”
Adam KarrSep 14, 2023▶ 49:47Adam Karr – Extreme Alignment at Orbis (EP.338)
Disclosure
Orbis charges a zero base fee and refundable performance fee
“On our long only strategies, we
Have a refundable performance fee. For our larger institutional clients, there's a zero base fee. So if we don't add value, generate alpha, client pays, zero fee. If we generate outperformance, we share that with a client whereb…”
Adam KarrSep 14, 2023▶ 12:52Adam Karr – Extreme Alignment at Orbis (EP.338)
Disclosure
Orbis held zero Japanese equities in 1990 despite a 45% index weight
“You go all the way back to inception, 1990. Japan was 45% of the world index, and we had zero.”
Adam KarrSep 14, 2023▶ 43:03Adam Karr – Extreme Alignment at Orbis (EP.338)
Disclosure
All 35 Orbis analysts run concentrated 10-stock paper shadow portfolios
“All of our analysts run paper shadow portfolios. So we've got 35 analysts around the globe, and after generally a year or two, they will launch a paper portfolio. And that tends to be a concentrated expression of, call it their 10 highest conviction Recommenda…”
Adam KarrSep 14, 2023▶ 23:00Adam Karr – Extreme Alignment at Orbis (EP.338)
Insight
Karr's personal data revealed that scaling into new positions detracted value
“My view is that the riskiest position is your newest position. You've got the least insight. And so I have tended to scale into a position when I'm undertaking a new position. Turns out data says that's not right for me in particular. If it's sufficiently good…”
Adam KarrSep 14, 2023▶ 36:53Adam Karr – Extreme Alignment at Orbis (EP.338)
Insight
An investment manager's time horizon is bounded by their clients' horizon
“You have to have an aligned client base that allows you to do it because your time horizon is only going to be as long as their time horizon.”
Adam KarrSep 14, 2023▶ 44:24Adam Karr – Extreme Alignment at Orbis (EP.338)
Made with StarZero
Turn any episode into a week of clips.
This entire site, over 700 episodes transcribed, diarized, checked and made playable,
runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the
moments worth sharing, cuts them, captions them, and reframes them for every feed.
We use essential cookies to make the site work. With your permission we
also use analytics cookies (Google Analytics and Mixpanel) to understand
usage and improve StarZero. See our Cookie Policy.