![Sorin Capital – Retail Contrarians - [Invest Like the Best, EP.68]](https://megaphone.imgix.net/podcasts/17458bf6-ccce-11ed-87bf-67faa02f02fd/image/Invest_Like_The_Best_Podcast_Cover_1400x1400.jpg?ixlib=rails-4.3.1&max-w=3000&max-h=3000&fit=crop&auto=format,compress)
Invest Like the Best with Patrick O'Shaughnessy
Sorin Capital – Retail Contrarians - [Invest Like the Best, EP.68]
Conversations with the best investors and business leaders in the world. We explore their ideas, methods, and stories to help you better invest your time and money. Hear stock market and boardroom insights you can't find anywhere else. If you're a professional investor, CEO, entrepreneur, or business strategist, this is for you. Explore all our episodes and learn more at https://www.colossus.com
Show Notes
Tap timecodes to jump
So far I’ve spent no time in the podcast discussing real estate, so I was excited to get the chance to talk to the team at Sorin Capital, a billion dollar hedge fund which specializes in commercial real estate, REITs, and commercial mortgage backed securities. Sorin is lead by Jim Higgins, who founded the firm, and Tom Digan, who coincidentally was a college classmate of mine at Notre Dame. You’ve probably heard me joke that this podcast should be called “This is who you are up against,” and this episode is a good example. I always enjoy exploring a niche part of the market, and this conversation on real estate is a perfect example of the type of work that firms do on behalf of their clients. Please enjoy my conversation with the team from Sorin Capital.
Show Notes
(First Question) –Outline the Real Estate Investment Trust world and what the assets and total value look like
– What does the profile of investors in the space look like compared to investors in the broader debt markets
– What are the characteristics of a liquid real estate portfolio that make them so attractive to investors
– Looking at the history of Sorin Capital and how the business has evolved to where it is today
– Understanding the idea of securitization of commercial mortgages
– What really led to the formation of Sorin after working for Bear Stearns
– Looking at the retail sector in real estate in the scope of actual trades that are being made
– From an investing standpoint, how do you craft a portfolio that takes advantage of the real estate space as retail appears to be suffering on the surface
– The different type of real estate investments in the retail sectors and what piece of the pie do they make up
– How does the business model of the mall work and why is it so connected to the department stores
– What is the future of malls itself with the big changes happening to the legacy stores that helped them proliferate
– Why won’t the same thing that has happened to apparel stretched to all sectors of the retail industry
– How do they search for inefficiencies in the market
– One of the craziest things they saw on the road that outlined real world craziness in real estate investment
– What is the duration involved in these types of investments
– How the portfolio is positioned across these different real estate types
– Why haven’t others come in and taken advantage of the investments that Sorin is able to
– Reaction to the idea that the growth of passive ETF’s and investing styles has lengthened the time over which certain inefficiencies would be corrected and are distorting things
– How much does momentum play into their thinking
– How evenly distributed are the vintages of these ten year cycles
– Explaining the idea of deep value bottom up work in the real estate investment world that they have done a deep dive on
– Best stories from boots on the ground visits
– The origin story for the original Sorin partnership
– Ugly Americans: The True Story of the Ivy League Cowboys Who Raided the Asian Markets for Millions
Liars Poker
– Barbarians at the Gate: The Fall of RJR Nabisco
– What was it like for Tom getting started and the lessons he learned after an incredible hard time for the market
– What was it like for Jim coming through the crisis
– What is the trend for funds to craft investments specific to investors vs having them buying products that they produce
= Are other hedge fund firms moving to a client demand or solutions-based model? Or are we still very early in the transition
– What would the generalists miss in this space vs someone like Sorin that is a specialist
This episode is not processed yet. Sign in to queue the transcript and make it useful for search and Q&A.
Sign in to queue transcript (1 credit)
Free to start
Skim the episode first,
Skim the episode first,
then decide if it is worth listening.
Sign up with Google in one click. 10 transcript credits included. No card needed.
Google sign-in · No credit card · 10 free transcript credits