Interview: Starting a Contrarian Hedge Fund
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- čas přidán 7. 03. 2022
- In this interview Adam Rodman explains how he launched a sector-focused hedge fund to pursue a contrarian investment thesis.
Adam describes the pressure he felt and the work he did to give himself the confidence to persist.
His recent success, betting on the price of uranium and nuclear energy, has given him a platform and brand that will benefit him for so long as he chooses to remain an investor, and in this interview, we are going to explore how he did it.
6:25 First to the CDS trade in Texas
7:20 Unconventional Office with a Jiu Jitsu Dojo
8:37 Adam’s Approach: Macro Sourcing Perspective on Ideas with a Value Focus
“Industries w macro inflection points that are underappreciated and find if securities are reflecting the reality you see coming.”
10:20 Spinning out to launch a hedge fund at 28 years old (launched in 2013)
10:59 Why Adam thought the hedge fund industry was screwed / Adam’s approach to investing
12:38 Attempting to structure a fund’s performance for investors
14:29 Managing investors is critical
15:50 LP asked for a dedicated fund focused on nuclear
16:35 The uranium trade starting in 2007
22:47 Emotional toll that comes with being a contrarian
23:01 Combining two funds
24:30 Facing criticism as a 28 year old fund manager
26:01 Uranium economics (having conviction)
26:47 Forecasting uranium is easy (a simple model)
27:43 No competition, which makes it easier to win
30:51 Contrarian investing: more bad days than good days
33:05 Breakfast at Lucky’s Diner
34:05 Learn to manage investors early
37:10 “Why does nobody care?” (just when you think all is lost...)
45:40 Launching a fund to take advantage of private opportunities in the advanced nuclear space
47:50 Becoming a brand in a sea of capital
51:13 Finding your focus
51:42 Best advice Adam received getting started
Original Post on ASM:
www.asimplemodel.com/insights...
Uranium Investment Thesis:
www.asimplemodel.com/insights...
These are great Peter. You have a great network and these deeper insights are lacking in the market. Please keep them coming though I really enjoy your technical work too
Thanks Paul! And appreciate the feedback. The next one gets more technical on structure for transactions / corporate governance, hopefully will go live next week.
Great interview, Peter. It is clear that you were enthusiastic about the discussion, but you occasionally interrupted Adam and that precipitated him to divert on tangents from the initial conversation at that juncture.
I really enjoy this interview series. Keep it up. The guests and conversations are excellent.
Thank you! The interviews are new, so I greatly appreciate the feedback. Is your suggestion to allow for more tangential topics as they develop?
My suggestion was to try and let the guests finish their thoughts. A few times you had interrupted.@@ASimpleModel
Assuming Adam is not a closet or covert narcissist, he has the lowest A.H. quotient and speaks more thoughtfully than than pretty much everyone in the hedge fund business. A liberal arts major who started in banking instead of trading might explain at least 51% of that. Good luck and best wishes.
Have to confess that I don't know what an A.H. quotient is, but I can tell you that Adam is a bada$$ with little ego... I was trying to get him to boast throughout the interview with zero success :)
@@ASimpleModel Ha.......meaning a**h*** as an appropriately stronger word for "jerk", in an industry where they are rife. Keep up your good work.
@@carltoncotter2614 haha, I actually googled personality types before responding :) should've known!! And yes, there are plenty...