In this interview with Excess Returns, Steven Romick discusses how he finds opportunities investing in the gap between perception and reality. Here’s an excerpt from the interview:
Romick: Somebody will be on the cover of some magazine in the next year or two that they got it right.
And then they’ll get a lot of plaudits and then try and get it right again for the next 10, 20 years.
I mean we’ve seen that time and time again.
Somebody will get it right it’s just not going to be us.
Host: And it just… and they won’t get it right the next time most likely.
Romick: We’re better at responding to what’s handed us. We are very good, I think historically, looking at what the market offers and trying to find where the opportunity is within that.
And we think of ourselves as is in some ways as arbitragers. And not merger arbitragers as most people would first think about it.
But really as arbitraging perception and reality.
We establish what we believe the reality is, and is likely to be, and then to the extent that the perception is vastly different than that creates a lot of room to operate.
And creates hopefully a margin of safety in making a given investment.
You can watch the entire discussion here:
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