Leffell: Physical edge of faxing SEC filings is dead in modern markets
Michael Leffell · Michael Leffell – Opening Doors to Niche Private Opportunities at 10 East (EP.373) · Mar 11, 2024 · at 15:34
Michael Leffell, founder of 10 East and former deputy executive managing member at Davidson Kempner, discusses how competitive informational advantages evolved over the decades.
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“So in the early years, we would have someone stationed at the SEC, and when a company we were following filed something, this person or company would take it and fax it back to us, and We had those rolls of fax paper that if you didn't read it quickly enough, the print would disappear. So you can't get that edge anymore. Information is too quick and too free flowing, but that was a lawful edge we could get.”
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“We saw a similar situation recently when Silicon Valley Bank and Signature Bank went bust, and the FDIC took over their books. The FDIC was selling it. They were giving it away at very, very advantageous prices.”
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“First off, if we're looking at a sponsor and there's two partners and they've never worked together before, that's something I'm always apprehensive about. I think that one of them will not be there in six months, and I don't want that institutional risk.”
Leffell: VC-backed alternative investment platforms are run by techies, not investors
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Leffell: Gov. Newsom insisted PG&E replace its entire board after bankruptcy
“And the governor had insinuated his staff into the process and was very engaged in what we were doing and insisted that the entire board change after bankruptcy.”
Leffell refuses any investment opportunity if counterparties rush his decision
“The other big coaching thing here is never rush. When somebody is rushing you to make a decision, back then it was enough to say I'm not doing it, and to this day I won't do it. If somebody's rushing me that you have to act now on a new idea, say what was tomo…”