Capital Allocators – Inside the Institutional Investment Industry Adam Karr – Extreme Alignment at Orbis (EP.338)
13 snips
Sep 14, 2023 
In this engaging conversation, Adam Karr, President and Portfolio Manager at Orbis, shares insights from his unique journey in global equity management. He discusses Orbis' innovative fee structures, including performance rebates that align interests with clients. Adam reveals their long-term investment philosophy and the use of analyst shadow portfolios to enhance decision-making. He also touches on the importance of cultivating talent and personal growth, all while emphasizing the joys of life outside the financial realm.
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Alignment is Key
- Orbis aims for extreme alignment with clients through various practices.
- Their contrarian investment approach requires clients who can tolerate periods of underperformance.
Refundable Fees
- Orbis utilizes a refundable performance fee structure to promote alignment with clients.
- Clients pay zero fees if there's no alpha generated, and fees are refunded during underperformance.
Permanent Ownership
- Orbis is uniquely owned by a charitable foundation in perpetuity, emphasizing long-term alignment.
- This structure enables independent, contrarian decisions despite potential short-term pressure.