Asset TV U.S.’s Post

Transcript

So Deb and I met in the early 70s, Gibb was working at a major New York bank. I covered about 1/3 of the universe of stocks or so between administrative work and actually the analyst on them. And who was the 3rd that the banks didn't want to own? It was the non Nifty 50. And in the early 70s or so the Nifty 50 which a lot of the large institutions had poured into came to horrendous crash in 73 four. When I was working for a Virginia firm which had been a value investment firm that lost its way as well during the the run up and plowed into growth stocks. So when Gibby and I got together, we both realized that there was a, we thought a great opportunity because we were seeing the outflows both at the big banks and at the regional level. So we would call up the the treasurer, chief financial officer and. Lo and behold, he had never heard of us, but he would take a meeting because he was so, so glad that somebody cared about his company. Shannon Sullivan joined us in 1979. She she came in as a partner. She came, she she had a trading skills, but she continues to be active in the business and keep us on the straight and narrow. Since our founding in 1978, the firm has been through. Many testing times has survived market turmoil and and euphorbias. And continues to. Follows strategy that has been successful for us and we're very excited about the future, about the team we have and about the the prospects for the future. The tenure of our team speaks volumes about the culture that Harry and Gibb created right from the start. I've been Sound Shores Head trader since 1984 because I believe in the team and strategy and enjoy being an integral part of it. Our size is also an advantage as it gives us the scale to compete and the ability to be nimble and trading and position sizing well. Our firm has endured and grown over the decades, but at our core, we are. An independent investment firm with one single fundamental value equity strategy. What that means is that we methodically are on the hunt for out of favour investment opportunities. We're contrarian investors. We plumbed through that set to find the most out of favor names where we think earnings power is intact and we've got substantial upside for our clients investments over the next two to three years, which results in a portfolio that's focused. But diversified and it's approximately 35 names. That represent our best ideas. Importantly, we are long term investors and we've always been that way. We think that's a huge edge. Fundamental equity research is what we do at Sound Shore. We look at the sustainability of the business with an emphasis on improving free cash returns on invested capital and shareholder returns. Often we are looking for change, either in the form of internal structural change or sometimes it may be an evolving industry that can lead to improved earnings and valuation. I'm very fortunate to be at Sound Shore where we've been working together for decades. We know each other's strengths. We know each other's weaknesses. I am a better investor because my partners continually challenge me. JD might ask, have you thought about this risk? David will say. I saw a company do something similar to that a few years ago. You should look at that critically. We all do our own research. We hold each other accountable to our clients, which includes ourselves as we are each investors in the fund. Collectively, we ensure that our process is both thorough and objective. So today, we feel like we've got the right mix of youth and experience to be very capable to drive value for our clients. We have focus and independence, which is increasingly differentiated in today's marketplace. And a really big competitive advantage. We're fully aligned with our clients because our investment retirement monies are invested right alongside them. And ultimately, we view these as long term partnerships. Where we're an extension of their investment office.