Brian Higgins, co-founder of King Street Capital, discusses early seed backing and references during the firm's 1995 launch.
Prediction Not checkable as stated
Higgins: Wage inflation is less transitory than goods and supply chains
“Wage much less transitory than the goods service. So I think there's the supply chain issues, which some might say will be resolved in short order. I think that will run a bit longer. The wage pressures will not be.”
Prediction Not checkable as stated
Higgins: Rate hikes in 2022-2023 will crush high-multiple asset valuations
“If rates do move in 22, 23, you will have, I think, some major movements in terms of discount rate and some of these high-flying multiple situations.”
Insight
Higgins: Investors only win 50-60% of bets; risk management is everything
“You have to have that humility as an investor because, I don't know, whatever, 50 plus, below 60, depending on the year, But it's not like we get 80% of the stuff. So that's always the dirty little secret. And what ultimately reveals itself is then that's the …”
Insight
Higgins: Investment edge begins with understanding existing portfolio risk
“Edge comes in at different points in the investment cycle. And so there's an initial edge, which is sourcing. But even before that, there's the edge on, can you understand the risk in your portfolio and what piece of risk do you need to then augment, supplemen…”
Insight
Higgins: Paranoia and insecurity are core tenets to maintain investment edge
“Other tenants at King Street are paranoia and insecurity, you know. So it's, people are like, really? Oh, that sounds dark. I said, no, no, it's because the work's never done, right? It's like going edge, right? When we say edge, why are we so lucky to be seei…”
Assertion Supported
Higgins: Post-2020 office occupancy sits at 30% in NYC, 20% in SF
“We were still from 2020, we're still only say 30% of occupancy in New York, San Francisco, around 20%.”