TIP669: Quietly Compounding at 20%+ Per Year w/ Derek Pilecki

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We Study Billionaires - The Investor’s Podcast

Guest
On today’s episode, Clay is joined by Derek Pilecki.

Derek is a managing member and portfolio manager at Gator Capital Management, which manages Financials sector long/short portfolios for private partnerships and mutual funds. Since its inception in July 2008, Gator Capital has compounded capital at 21.0% per annum versus 11.8% for the S&P 500 over the same time period.



IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:48 - Derek’s experience of launching a financials-focused fund 10 weeks before the collapse of Lehman Brothers.

12:13 - Derek’s advice to aspiring hedge fund managers.

14:30 - How Derek achieved a return of 186% in 2009.

14:30 - What led Derek to purchase General Growth Properties, whose stock increased by 20x in less than one year.

23:25 - Why Warren Buffett likes financial companies, especially the big banks.

27:38 - Why Derek puts his focus on financial companies.

33:36 - How banks can create a sustainable competitive advantage in their market.

36:08 - Why First Citizens Bancshares is Derek’s top position in his fund.

46:44 - An update on the current market conditions for banks.

50:21 - How a high inflation environment would impact banks.

52:53 - Why Derek is long Robinhood.

And so much more!



Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.



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