Sebastian Lyon & Charlotte Yonge (Troy) - Evolve to Preserve
Sebastian Lyon and Charlotte Yonge co-manage Personal Assets Trust and Troy’s Multi-Asset strategy. We discuss the strategy’s evolution over the last 25 years, Troy’s equity-centric approach to multi-asset investing, and why creating a resilient portfolio is as relevant as ever in today’s world.Show notes:[01:34] Founding philosophy[04:21] Avoiding complexity[07:25] Reasons for not owning derivatives[08:45] Charlotte’s career[10:41] Becoming co-manager[12:35] How Sebastian and Charlotte complement each other[16:43] Avoiding wasting assets[19:19] Finding opportunities with asymmetric risk[21:44] Hubbell and Verisign[24:45] Evolution of fixed income investments[27:08] Shortening of duration[31:00] Will the US$ remain a safe haven?[34:55] Attractions of the Japanese Yen[36:11] Gold as essential portfolio insurance[38:44] Does the macro impact asset allocation?
Seth Brennan is co-founder of Lincoln Peak Capital, which owns minority stakes in several asset management companies, including Troy. We discuss Lincoln Peak's long-term partnership model and the importance of autonomy and a strong alignment of interests as foundations for success.Show notes:[01:15] Seth discusses how he got into the industry[02:49] Joining Affiliated Managers Group[03:43] Lessons from AMG[06:37] Setting up Lincoln Peak[07:51] Starting a business in 2008[10:01] The importance of having long-term capital[14:10] Lincoln Peak’s long-term ambitions[16:20] Exits[18:51] The due diligence process and reasons for a transaction[22:53] Importance of autonomy and alignment[25:01] Adding value to partner firms[28:26] Avoiding the temptation to intervene[31:52] Continuing relevance of active management[34:44] Catalyst for Troy transaction[35:35] Why Lincoln Peak is a good partner for Troy[37:14] Sebastian’s strengths as an investor[38:35] Be curious and ask questions
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40:12
Matthew McLennan (First Eagle) - Investing for Resilience
Matthew McLennan is co-head of First Eagle’s Global Value team and one of the portfolio managers of Global Value, a strategy that has delivered strong long-term compound returns. We discuss the importance of humility and patience, why resilience is emphasised throughout the portfolio, and how Global Value has survived and thrived across a broad range of market environments. Show notes:[01:24] How an unusual childhood informed Matt’s approach to investing[03:52] Succeeding Jean-Marie Eveillard[05:46] Continuous refinement of the investment kernel[07:04] Successful succession planning[09:45] Sustaining success over different market cycles[12:15] Important character traits and attributes[17:01] Impact of passive investing[19:20] The benefits of having a Senior Advisor Board[22:09] What value investing means to First Eagle[26:38] Endogenous integrity with the capacity to suffer[28:40] Discerning between secular change and noise[33:44] Approach to asset allocation[35:46] Benefits of owning gold[37:45] Role of cash in the portfolio[40:11] High valuations and prospective returns[42:51] Gold miners vs bullion[44:41] Understanding the process of growth and the role of endogenous confidence cycles
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46:20
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46:20
Gabrielle Boyle & George Viney (Troy) - Patient Improvement
Gabrielle Boyle and George Viney co-manage Troy’s Global Equity strategy. We discuss why the market persistently underestimates the compounding power of rare and exceptional companies, the importance of recognising one’s biases and striving to learn and improve as investors, and why Gabrielle and George work so well together as a team. Show notes: [01:26] Why the market persistently underestimates the compounding power of rare and exceptional businesses[02:41] Companies don’t compound in a linear way[05:09] Having the right environment to sustain success[08:55] How Gabrielle and George complement each other[10:35] The importance of having an inner critic[12:45] Continuous improvement[14:24] Combining resilience with reinvestment potential[16:10] Characteristics of special businesses[18:35] Sell discipline[20:41] Minimising biases and ensuring accountability[24:39] Balancing strong operational performance with fair valuations[27:32] A concentrated portfolio with broadly diversified businesses[29:17] Troy’s broader team[30:57] Cognitive diversity with shared values[33:04] Confidence in the future[34:29] Back your conviction
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36:14
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36:14
Dan Davidowitz (Polen Capital) - Compounding Made Simple
Dan Davidowitz is lead portfolio manager of Polen Capital’s Focus Growth strategy. We discuss Dan’s evolution as an investor, Polen’s investment guardrails, and other factors that have helped the strategy deliver exceptional returns over the last 35 years.Show notes:[01:16] Dan discusses how he pivoted from public health to investing[02:56] Thoughts on healthcare investing[04:30] Shifting from a deep value shop to Polen Capital[07:44] Keep things simple[10:01] Time arbitrage with businesses that are the best-of-the-best[12:12] Creating a high performance investment team[14:23] The importance of being both optimistic and open-minded to change[16:34] Getting better each day to remain competitive[17:59] Polen Capital’s evolution[20:40] Polen’s investment guardrails[22:14] Vigilance and conservatism for continuous compounding of earnings growth[24:35] Making sure companies are investing adequately for their future[26:34] Acquisition-driven companies[28:45] Investing across the growth spectrum[31:17] Having a broad mix of competitively-advantaged businesses[33:51] Valuation discipline[36:45] Lessons from the last few years[38:30] Impact of GenAI[41:03] Why Amazon is a large holding[45:35] Building any experience is good experience
Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.
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