Adam Wyden, founder of ADW Capital, discusses lessons learned from investing in technology turnarounds during an interview with PAR Technology CEO Savneet Singh.
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“In technology, investors need everything to be perfect. And as a value guy, I've always said, it's so cheap. If it's 85% right, you'll get 85% of the multiple or the value. And I think in technology, that's not the case. People want everything perfect.”
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More from Adam Wyden
PredictionNot checkable as stated
Wyden: Tighter private capital will force earlier IPOs and boost small caps
“The availability of private capital is going to be less readily available, so companies are going to go public earlier, which means the quality of the indices are going to improve, which means people are going to buy small caps more.”
Adam WydenSep 22, 2022▶ 26:57Adam Wyden - ADW Capital (Manager Meetings, EP.37)
PredictionNot checkable as stated
Wyden: Meaningful mean reversion and inflows will return to small-cap stocks
“I can't tell you whether it's six months or 12 months or 24 months, but what I can tell you is that there will be meaningful mean reversion in small cap stocks. What has happened over the last 11 years where money's getting sucked out, money's going to go in.”
Adam WydenSep 22, 2022▶ 27:06Adam Wyden - ADW Capital (Manager Meetings, EP.37)
AssertionSupported
Wyden: I wrote PAR's John Sammon had a 'PhD in value destruction'
“I think it was hard for John Salmon to go and sit face to face with someone who wrote a public letter saying, you have a PhD in value destruction, but actions speak louder than words.”
Adam WydenSep 22, 2022▶ 17:44Adam Wyden - ADW Capital (Manager Meetings, EP.37)
Insight
Wyden: Activist investing distracts from other portfolio holdings even when successful
“I look at companies where the reason why you own it is for activism, and I've found that that strategy, even when you win, distracts you materially from your other investments. There is a psychological cost to that, not just financial.”
Adam WydenSep 22, 2022▶ 23:01Adam Wyden - ADW Capital (Manager Meetings, EP.37)
Opinion
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Adam WydenSep 22, 2022▶ 24:41Adam Wyden - ADW Capital (Manager Meetings, EP.37)
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Wyden: Timing exits is hard, so invest where time is your friend
“What we have found is that knowing when to buy things is super obvious, knowing when to sell isn't. And so if you're not going to get the sell methodology perfect, then you got to be in a situation where time is your friend.”
Adam WydenSep 22, 2022▶ 11:57Adam Wyden - ADW Capital (Manager Meetings, EP.37)
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