Here’s some highlights from the conversation:“[Phil King] has over the last few years built up a reputation as probably the biggest risk taker in funds management, and that’s delivered incredible returns and allowed him through his long short strategies, which means you borrow stock, to invest in a company that’s going to go bad. And then you buy it back when it’s cheaper.”
“The door is not very ajar but there is a crack of light and it’s not impossible that the Pendal and Perpetual deal could be scuppered. That’d be pretty bad news for Pendal shareholders because that share price is being held up by this deal. UBS has estimated that if the merger with Perpetual was to fall apart, the Pendal share price could fall by about 28 per cent.““His Opportunities Fund maintains a list of all the things that they want to buy that they’re on their radar.
“He reminded us that he’d picked the five big turning points over the past 20 to 30 years. And that’s pretty impressive. But he was very careful to say that we’re not at the turning point yet. He thinks we’re about 80 per cent there. So, what he’s saying is that there’s a lot more pain to come. But I think it’s very difficult for any investor to pick the bottom of the market.”