David Baran, co-founder of Symphony Financial Partners, explains the fund's conservative balance sheet philosophy and prime brokerage usage.
0:00 / 0:08exact quote · 8.6s
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“We never lever. We're a terrible prime brokerage client. We don't short, and we don't borrow money.”
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More from David Baran
Insight
Baran: Japan's governance reform is driven by domestic pensions, not foreign activists
“This is not a CalPERS, CalSTRS, Hermes problem. This is a Japanese pension fund problem that the Japanese have to decide for themselves To start paying their beneficiaries properly.”
David BaranFeb 8, 2021▶ 37:19David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
Insight
Baran: Believing liquid stocks trading $10M daily are mispriced is arrogant
“If you think something that trades ten million dollars a day is going to be mispriced, your own arrogance is just too big.”
David BaranFeb 8, 2021▶ 49:15David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
AssertionSupported
Baran: Japan's pension reforms forced price-insensitive liquidation of equity portfolios
“Because for some god unknown reason, the government said, we don't want to take your assets, we'll take your cash. So everything was converted into cash, and there was no price sensitivity at all.”
David BaranFeb 8, 2021▶ 11:06David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
Opinion
Baran: Early hostile activists failed in Japan because society resisted their methods
“The business culture and, you know, society was not ready for the kind of hostility and just pure greed that it looked like in these transactions.”
David BaranFeb 8, 2021▶ 29:06David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
AssertionContradicted
Baran: Trillions of dollars sit idle on Japanese corporate balance sheets
“There's trillions of dollars sitting on Japanese balance sheets that are owned by Japanese pensioners who need the money.”
David BaranFeb 8, 2021▶ 38:11David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
AssertionNot checkable as stated
Baran: Japan's governance shift spans 15 years, not just five
“And that has made a Very substantial sea change in direction in Japan over the past, really, 15 years, not five.”
David BaranFeb 8, 2021▶ 38:49David Baran and Kazuhiko Shibata – Friendly Activism in Japan at Symphony (Capital Allocators, EP.176)
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