Lyon: Value trap theses based on cost-cutting always perform poorly
David Lyon · David Lyon – Hybrid Capital Solutions for Private Assets (EP.471) · Nov 17, 2025 · at 53:58
David Lyon, Head of Capital Solutions at Neuberger Berman, explains his investment philosophy regarding revenue growth versus cost reduction strategies.
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“My least favorite theses are value traps. I'm going to fire X, Y, and Z, and I'll be able to create an X multiple. Other people may do this well. In my 31, 32 years of doing this, that's always gone poorly. I will take top line Over terminating people, cutting costs all day long.”
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