Capital Allocators – Inside the Institutional Investment Industry Yen Liow - The Quest for the Right Tail at Aravt Global (Capital Allocators, EP.188)
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Apr 12, 2021 
Yen Liow, Founder and Managing Partner of Aravt Global, brings rich experience from Ziff Brothers Investments to discuss investment philosophies and strategies. He delves into three right tail strategies, highlighting challenges in owning compounders and the nuances of short selling. Yen emphasizes the importance of a structured approach amid market volatility and the psychological aspects of investing. His insights on risk management and team dynamics illuminate the intricate balance of capital allocation in public equity investments.
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Patience and Preparation
- Build patience into your investment process, especially for compounders.
- Prepare for volatility by maintaining a battle-ready inventory of potential investments.
Managing Downside Volatility
- Hold through downside volatility instead of adding down, especially with high-quality businesses.
- Recognize that drawdowns are normal and focus on staying fully invested.
Managing Upside Volatility
- Handle upside volatility by accepting periods of high multiples and potential drawdowns.
- Surrender to the journey and focus on the long-term earnings power.
