POWERS #339 - Simon Wagner - Founder @ Granite Oak - Compounding $1M to $250M in 10 years
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Feb 22, 2024 Simon Wagner shares his journey from Morgan Stanley to founding Granite Oak, focusing on mortgage-backed securities, commercial mortgage thesis, Irish real estate market, planning & entitlements. Delve into Ireland's housing shortages, fundraising, and the challenges in European housing development.
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Quick Return Strategy
- Simon Wagner bought bonds at a deep discount (e.g., 5% of par value) with a high coupon rate (e.g., 5%).
- This allowed him to recoup his initial investment within a year through coupon payments, leaving further gains as pure upside.
Shifting to Real Estate
- After leaving Morgan Stanley, Simon Wagner bought small, undervalued bonds overlooked by institutional investors.
- He later joined a hedge fund to implement this strategy with institutional capital, but regulations eventually limited the market.
Transition to Real Estate Investment
- Observing high borrowing costs in Ireland, Simon Wagner realized borrowers prioritized acquiring real estate despite the expense.
- This led him to transition from lending to real estate investment, focusing on the Irish market.