Angela Aldrich - Developing A Differentiated View

One of the most exciting things in our industry is finding young investment managers who are incredibly bright, hard-working, and well-trained in the investment process. Our guest today, Angela Aldrich, fits that bill perfectly.

Angela is the co-founder of Bayberry Capital Partners, a hedge fund with a half-billion dollars in assets based in New York. Before starting Bayberry Capital Partners, she worked at John Griffin's Blue Ridge Capital, which shut down in 2017 after a glorious 21-year run during which it returned its investors an average return of 15.3% annually. Angela graduated from Duke University with a degree in economics and received an MBA from Stanford University Graduate School of Business. Before joining Blue Ridge, Angela worked at Goldman Sachs, BDT Capital Partners, and Scout Capital Management.

In this episode, Angelo, Tano, and I discuss her path to a career in investing, what it was like to be mentored by John Griffin, Angela's key learnings from her transition from analyst to portfolio manager, Bayberry's investment philosophy and approach to search, portfolio construction and sizing, how to find opportunities in volatility, case studies of companies which demonstrate Bayberry's organizational principles in action, and so much more!

This podcast is not an offer to sell or the solicitation of an offer to purchase any securities, nor is it an offer of any advisory services. This podcast is for informational and educational purposes only, and intended to provide general market commentary. The discussion of any individual investments discussed in this podcast is for informational purposes only, and any such investments are not representative of all of the investments held, or that may in the future be held, by any fund, account or investment vehicle managed by Bayberry Capital Partners LP. Nothing in this podcast, including any discussion of past results, is a guarantee of similar or future outcomes.

Key Topics:

• Welcome Angela to the show (2:12)
• How Angela found her way to a career in investing (3:09)
• The transformational experience of working with John Griffin, founder of Blue Ridge Capital Management (5:53)
• Navigating the transition from analyst to portfolio manager (9:13)
• Portfolio construction as a form of risk management (11:20)
• Finding opportunities in periods of crisis and high volatility (15:00)
• The investment philosophy and organizational principles that drive results at Bayberry Capital (18:25)
• Bayberry's approach to recognizing surprisingly high business quality (22:04)
• Signposts of suitable candidates for the short side (25:39)
• Unlocking value from an investment thesis (27:22)
• How to avoid thesis creep (30:26)
• The central importance of identifying the right key investment factors (33:23)
• Portfolio sizing principles at Bayberry (36:21)
• Why WillScot Mobile Mini Holdings became Bayberry's largest long (39:36)
• How Bayberry goes about valuing businesses (48:27)
• Why Bayberry became interested in Burford Capital (50:38)
• What keeps Angela worried and excited about markets in the future (1:01:14)
• Angela's book recommendations (1:02:32)
• And much more!

Mentioned in this Episode:

• Carol S. Dweck's Book | Mindset: The New Psychology of Success
• Sudhir Venkatesh's Book | Gang Leader for a Day: A Rogue Sociologist Takes to the Streets

Thanks for Listening!

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