Capitalize For Kids Conference – Full Notes

ValueWalk attended IRA Sohn Conference in Toronto Aka Capitalize For Kids which took place October 26th-27th and featured an all star line up. has some extensive notes from the conference. Readers can find our rough notes below. We have more upcoming conferences so stay tuned for coverage.

Also see

NOTE: The full file with slides which explain the text can be found at the bottom of this post. Also, Dan Loeb's presentation was off the record so we have nothing on that panel.

IRA Sohn Conference - Credit Panel
Ted Goldthorpe – Former CIO of Apollo Investment Corporation

Nat Zilkha – KKR & Co.

Jonathan Lewinsohn – Centerbridge

  • The asset origination market is big. This is one way to earn decent returns in a fixed income environment where solid trading opportunities are more scarce than they were before the crisis, as a result of low inventories
  • Lower quality is expensive. As such, credit investors are “moving towards senior tranches”
  • Even so, the non-investment grade space amounts to $2 trillion. So there are still some opportunities
  • In an expensive market there an increased focus on exists vs entries. Timing is important and there many chances to get it right since “foreign investors are searching for yield”
  • Unrated products are hard to invest in because of mandates, etc. As such, we are seeing an increase in aggregation – packaging unrated products into rated structures
  • Despite lessons learned (or not) from the crisis, there is still a duration mismatch between assets < liabilities
  • With rates so low, duration risk is exceptionally high
  • It is easier to find opportunities with less capital. A larger capital base makes certain trades impossible due to limited supply and liquidity, etc.
  • Commodity cycles are long because of how much capital is involved in the upswings
  • Public information on energy companies is not reliable since they choose to present the best wells, etc.

Places to look:


This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up today and get three months free

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 10/31/2019 or after next 25 20 subscribers take advantage whichever comes first – please do not share this discount with others