Jonathan Tepper, founder and CIO of Prevatt Capital, discusses the hiring and operational lessons learned while scaling Prevatt Capital.
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“And I think one of the important things is finding high talent and high agreeableness. Generally, these two don't go together.”
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More from Jonathan Tepper
Opinion
Tepper calls TransDigm's price-tripling aerospace model 'slightly parasitic'
“You have some like Transdime, for example, which relies on FAA certification and are pretty open about they triple the pricing when they purchase a little part, and they raise prices over six percent per year, regardless of what the underlying cost of producin…”
Jonathan TepperMar 18, 2024▶ 26:39Jonathan Tepper - Buying Monopolies at Prevatt Capital (EP.375)
AssertionNot checkable as stated
Tepper: Replicate expensive quality funds for 15bps using XLP, XLK, and XLV
“You can basically buy XLP, XLK, and XLV at 15 bibs and replicate with about 95% correlation a lot of these quality funds.”
Jonathan TepperMar 18, 2024▶ 36:32Jonathan Tepper - Buying Monopolies at Prevatt Capital (EP.375)
Insight
Tepper: High corporate margins stem from pricing power, not efficiency
“That paper itself started tied the high profit margins to competition and pointed out that it's not because these firms are just that much better and more efficient. They're getting a higher return on assets and it comes from scale. Rather, they end up with pr…”
Jonathan TepperOct 7, 2019▶ 24:54Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110)
Insight
Tepper: Economic Inequality Stems from Lack of Competition, Not Capitalism
“What Piketty talked about certainly does happen, which is that you end up with an increase in inequality. And it doesn't come because there's a fatal flaw in capitalism. It comes because essentially there's not enough competition. Capitalism itself is not func…”
Jonathan TepperOct 7, 2019▶ 27:38Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110)
AssertionSupported
U.S. Antitrust Chief Makan Delrahim Was Once Google's Lobbyist
“Macon Dalrahim, for example, is the attorney general for antitrust in the US. He was Google's lobbyist for the double click acquisition.”
Jonathan TepperOct 7, 2019▶ 30:46Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110)
AssertionSupported
TransDigm Hikes Acquired Aircraft Component Prices by 500% to 700%
“A classic one that hedge funds love and that I think is horrific is Transtime. Basically, there's not competition because to get an FAA part approved takes a very long time, and so you and I can go and provide seat belts cheaper than Transtime, and anytime the…”
Jonathan TepperOct 7, 2019▶ 36:12Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110)
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