Wyden: ADW focuses on rehabilitating fixable 'scratch and dent' assets
Adam Wyden · Adam Wyden - ADW Capital (Manager Meetings, EP.37) · Sep 22, 2022 · at 21:27
Adam Wyden, founder of ADW Capital, describes his activist investment methodology to PAR Technology CEO Savneet Singh.
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“When you think about what we do, our business model is scratch and debt inventory. We want to find the Porsche that's sitting in the garage, and we want to go and replace the tires and give it a car wash, and then we're going to drive it really, really hard. That's our business model. That was our business model owning Ferrari inside of Fiat. That was our model with PAR.”
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More from Adam Wyden
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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.”
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.”
Wyden: Tech investors demand operational perfection, unlike traditional value investing
“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.”
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.”