The True Cost of Capital for Hedge Fund Investors

Featuring Scott Davies

Scott Davies, Founder and CIO of CDAM, details his interesting investment approach, which involves a concentrated portfolio and a hedge overlay to capture mispricing, with a relatively long hold period to catch cycles. Eschewing traditional revenue models, CDAM is focused on what CEOs are doing with the money they invest with them because misunderstanding the cost of capital leads to misallocation and value destruction. Filmed on May 23, 2017, in London.

Published on
30 May, 2017
Topic
Europe, Investment Framework, Credit Market
Duration
29 minutes
Asset class
Bonds/Rates/Credit, Currencies, Equities
Rating
29

Comments

  • HA

    Hamed A.

    2 6 2017 17:46

    1       0

    why does one of the camera angles have a smoke machine? maybe turn that off for the next interview

  • JC

    John C.

    1 6 2017 09:00

    1       0

    interesting views thanks. Just wondering about when all this 'Europe looks attractive' stuff starts to peter out...Euro at 1.12+ and the migrant crisis /terrorism will heat up this Summer I bet. He tends to cast aside these poltical events but I wonder if the above + more election noise in Italy might cause some bumps in the road

  • AC

    Andrew C.

    31 5 2017 11:00

    3       0

    Thanks Scott, great discussion. About the cycle of 7-10 years; do you find yourself close to 100% cash towards the top (where euphoria is becoming obvious), or are you still able to find some sectors or individual companies worth owning even though a crash might mean correlations approach one, and even those stocks you own will go down? You mentioned a hedge; would that just be a short (or put option) on the appropriate index? So then you can just ride out any loss on a stock you want to own for the next 3-4 years?

  • JT

    John T.

    31 5 2017 09:13

    0       0

    Good interview and very interesting approach. Would have been really useful to have picked a company to demonstrate the detail around the selection process.

  • CR

    Chris R.

    31 5 2017 07:12

    0       0

    Great bullish view on Europe. I still missed some comments about the indebtedness of the southern countries like Greece and Italy. Also the econonmical performance differences of those countries and for example germany what requieres different monetary policies within the currency union.

  • RL

    Rodrigo L.

    31 5 2017 02:24

    1       0

    Would have been interesting to delve a bit more on the relationship between interest rates and dividend paying stocks or utilities as the low interest rate environment has blurred the differences.

  • RA

    Robert A.

    30 5 2017 22:23

    3       0

    Excellent one and I think the interviewer, whom I have seen before, is doing a really good job! Like the new summary by the interviewer, but one quick thought----if there are more than 4 "bullet points" could you try to leave them on the screen a bit longer so we can digest them.

  • SV

    Stefan V.

    30 5 2017 19:57

    1       0

    Interesting. Thank you Ian.

  • RM

    Richard M.

    30 5 2017 13:28

    0       0

    Nicely done!