Show Notes
In this episode, hosts Tano Santos and Michael Mauboussin speak with Matthew Fine, portfolio manager at Third Avenue Management, about his path into investing and the firm's value-driven philosophy. Matthew reflects on lessons from early experiences like the Argentine crisis and explains how balance sheet strength and long-term thinking shape investment decisions. The conversation examines global opportunities across Europe, Japan, and commodities, along with the role of resource conversion in value creation. They also discuss market structure shifts, portfolio resilience during crises, and the challenges of identifying mispriced assets in a changing investment landscape and much more!
Key Topics: ● Introduction and background of Matthew Fine (0:00) ● Early interest in investing and joining Third Avenue (3:37) ● First investments during the dot-com bubble (5:54) ● Marty Whitman's influence and value investing philosophy (7:23) ● Importance of downside thinking and credit mindset (9:20) ● Benchmark agnosticism and high active share (10:14) ● Experience during the Argentine crisis (11:45) ● Generalists vs. specialists in investing (14:12) ● Financial strength and resource conversion explained (18:34) ● Portfolio resilience during major market crises (21:28) ● Understanding market disagreement and investor behavior (24:54) ● Impact of passive investing and short-term strategies (30:27) ● Artificial intelligence and investment process (33:03) ● European banks and Bank of Ireland case study (34:38) ● CK Hutchison and value creation through transactions (40:42) ● Commodity investing and copper thesis (45:14) ● Opportunities and challenges in Japan (49:26) ● Advice for students entering investment management (53:22) ● Concerns about U.S. equity valuations and future outlook (55:28) ● Book recommendations and closing thoughts (56:59) ● And much more!
Mentioned in this Episode: ● Third Avenue Management ● Bank of Ireland ● Deutsche Bank ● CK Hutchison ● BlackRock ● MSC (Mediterranean Shipping Company) ● The Sugar King of Havana ● How the World Really Works – Vaclav Smil ● Pioneering Portfolio Management – David Swensen ● Ten Global Trends Every Smart Person Should Know About – Marian Tupy
Thanks for Listening!
Be sure to subscribe on Apple, Google, Spotify, or wherever you get your podcasts. And feel free to drop us a line at [email protected].
Follow the Heilbrunn Center on social media on Instagram, LinkedIn, and more!
More from Value Investing with Legends
In this episode, Michael Mauboussin welcomes Eddie Perkin, former Chief Investment Officer at Eaton Vance and Goldman Sachs Asset Management, to discuss the principles behind better investment decision-making. Eddie shares how his early experiences shaped his investment philosophy before examining quality value investing, behavioral biases, and the importance of process over outcomes. The conversation explores leadership, collaborative conflict, confirmation bias, portfolio construction, selling discipline, and how investment organizations can create environments that encourage independent thinking. Eddie also reflects on the future of investing, the opportunities created by technological change, and the books and ideas that continue to influence his thinking—and much more!
In this episode, hosts Tano Santos and Michael Mauboussin welcome Django Davidson, Partner and Portfolio Manager at Hosking Partners, for a discussion of the capital cycle approach to investing. Django shares how his unconventional upbringing, experience covering banks during the Global Financial Crisis, and early exposure to Warren Buffett's letters shaped his investment philosophy. The conversation explores the origins of the capital cycle framework, how investors can identify industries experiencing excessive capital formation or capital scarcity, and why patience and long-term capital are essential to capturing opportunities. They also examine current AI investment trends, the evolution of the semiconductor industry, Japan's corporate reforms, and several real-world investment case studies, including Micron Technology and Saga. The discussion concludes with reflections on industrial resilience, supply chains, and book recommendations—and much more!
Jim Flynn is the Managing Partner of Deerfield Management, a healthcare-focused investment firm overseeing approximately $16 billion in assets. In this episode, hosts Michael Mauboussin and Tano Santos speak with Jim about his path from studying biology and economics to leading one of the industry's most distinctive healthcare investment platforms. Jim explains how Deerfield evolved from a public-equity-focused firm into an organization spanning public markets, private investments, venture creation, drug development, data science, and philanthropy. The conversation examines the challenges of healthcare investing, the importance of probabilistic thinking, the role of artificial intelligence in healthcare delivery and drug discovery, and Deerfield's approach to identifying opportunities across the healthcare ecosystem. Jim also shares insights on senior housing, healthcare innovation, regulatory dynamics, and the skills required for the next generation of healthcare investors, and much more!
In this episode, hosts Michael Mauboussin and Tano Santos speak with Jenny Harrington, CEO of Gilman Hill Asset Management, about her approach to dividend-focused investing. Jenny shares her journey from early internships to portfolio management and explains how her strategy targets steady income through high-quality dividend-paying companies. The discussion examines risk management through cash flow, valuation discipline, and behavioral considerations that influence investor outcomes. Jenny also outlines her screening process, portfolio construction, and how she evaluates dividend sustainability. The conversation touches on lessons from market cycles, the role of communication in investing, and how technological changes may shape future opportunities and risks and much more!
In this episode, Tano Santos speaks with Samer Sarraf, Founding Partner and COO of Amwal Capital Partners, about his journey from engineering and construction to Lehman Brothers and ultimately founding a public equities firm focused on the GCC. Samer reflects on lessons from the 2008 financial crisis, why private equity struggled in the region, and how his team applies a private equity mindset to public markets. The conversation examines regulatory change, market structure in Saudi and the UAE, concentrated investing, and a deep dive into Abu Dhabi Ports and much more!