A massive fundamental investing red flag uncovered – in the last place you’d think, Davos

Hedge Funds: If your CEO is waxing philosophical at Davos, it might be time to drop them like it’s hot[1]


[1] As stated by contemporary philosopher and 21st century artist Cordozar Calvin Broadus, Jr. better known as “Snoop Dogg”

By and large, many investors consume droves of material written by authors on a deadline. What’s more, this comes at the expense of reading books. Aware of this paradox, our remedy is to present three favorite authors Bill Thorndike[1], Nassim Taleb and the late Barton Biggs along with a shared abhorrence – the World Economic Forum’s (WEF) annual meeting; Davos.

[1] Thorndike’s tome celebrates unconventional CEOs that engineered shareholder value through superior capital allocation in effect enacting publicly traded LBOs (Prudent use of leverage, scarce equity offerings and disciplined M&A with shareholder value as scorecard)

Davos Books

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Hedge Funds: Why the highly coveted CEO meeting is overrated

 The Mentor vs The Apprentice

No one knows how to dig out jewels and reposition a business via accretive, bolt-on M&A like Colin Day who led strategic repositioning at Reckitt Benckiser (“RB”) as a hands-on CFO far more than most appreciate. Moreover, a high conviction investor could have accrued gains as large as 1000%[1] in RB during Colin’s tenure – under the aegis of Bart Becht. Today, Colin is the CEO of Essentra plc (fka Filtrona) and serves as a reminder of the dangers of subconsciously dismissing underlings, namely strategic CFOs.

[1] Aided by leveraging equity options

The Dream Team

In September 2000, Colin Day joined RB, a consumer products conglomerate[1], and together with Bart Becht racked up an enviable track record of capital allocation and a rousing share price appreciation[2].

[1] Includes the likes of Durex condoms, cleaning agensts Harpix & Dettol along with various OTC drugs

[2] During Colin’s intial month shares traded at low ~800p to £34.39

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