Far From The Finishing Post

Troy Asset Management
Far From The Finishing Post

Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.

  1. 11/10/2023

    Stuart Widdowson (Odyssean Capital) - Concentrating on UK Smaller Companies

    Stuart Widdowson founded Odyssean Capital, is co-manager of the Odyssean Investment Trust, and has a wealth of experience investing in UK-listed smaller companies.  We discuss the lessons Stuart has applied to public equity investing from his days in private equity, the rewards derived from investing in good quality companies that can be improved, and the overall state of the UK market.  Show notes: [01:28] Stuart discusses his early career [04:12] Swapping private equity for public equity investing [06:11] The market imperfections in small cap investing [07:44] A focus on global niche market leaders [09:35] Stuart’s ambitions for Odyssean Capital and its cultural values [11:51] The meaning behind the Odyssean name [12:49] The benefits of concentration [14:25] Managing risk and avoiding bad businesses [16:41] The quality attributes Stuart looks for [19:38] Pattern recognition in TMT, healthcare, specialist industrials and services [22:18] Being cycle aware rather than trying to time cycles [24:18] The role of static and dynamic valuation [28:20] Managing for liquidity [31:27] Identifying companies with the potential for self-help [34:15] Backing people and focusing on what is fixable [36:05] Being credible when engaging with companies [39:37] The structural headwinds facing UK equities and the valuation opportunity [43:16] Contrarians come in first [44:18] Navigating a higher cost of capital [47:20] Find out what you enjoy and are good at and get a good mentor

    48 min
  2. 09/11/2023

    Oddbjørn Dybvad (REQ Capital) - Acquisition-driven Compounders

    In this episode we speak to Oddbjørn Dybvad, co-founder of REQ Capital, an Oslo-based investment firm.  Oddbjørn manages REQ’s Global Compounders and Nordic Compounders funds, which focus on acquisition-driven businesses.  We discuss the entrepreneurial energy within these companies, why they are able to reinvest capital at attractive rates for a long period of time and how their diversified and decentralised nature makes them both resilient and adaptable.  Show notes: [01:22] Oddbjørn discusses his career [02:26] The risk and return characteristics of acquisition-driven compounders [04:25] The influence of geography [07:01] Defining the different types of serial acquirer [09:12] Focusing on small/mid-caps with a long runway for redeploying capital [10:41] The diversification benefits of acquisition-driven companies [12:11] A preference for insider ownership, decentralisation and acquisitions funded by cash [13:29] Communicating with investors in a different way [14:53] Key person risk and the sustainability of culture [16:28] Change at Diploma [18:07] Harnessing entrepreneurial energy through decentralisation [20:43] Decentralisation and adaptability [21:59] Motivating behaviour through simple incentivisation structures [24:52] Focusing on track record and management [25:56] Constellation Software and the decentralisation of capital allocation [28:07] The valuation differential between public and private markets [30:51] The attractions of selling to acquisition-driven compounders [33:06] Looking for the dual engine of organic and inorganic growth [35:04] The underlying characteristics of REQ Global Compounders [37:13] Becoming more conscious about evaluating risk and management [39:07] Finding people who are process-oriented and have a long-term mind-set [39:55] Learn from your mistakes

    41 min

About

Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.

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