Mutual fund turned hedge fund manager says "Mother of all Bubbles" is yet to come

Hedge Funds
by trusted insight posted 8years ago 17354 views
Robert Sanborn is co-founder of investment management firm Sanborn Kilcollin Partners, an equity long-short hedge fund based in Chicago with roughly $200mm in assets under management. Prior to starting Sanborn Kilcollin, Mr. Sanborn managed mutual fund The Oakmark Fund from 1991 to 2000. In this Opalesque.TV interview, Mr. Sanborn describes the transition from mutual fund manager to hedge fund manager, starting his own fund after coming from a mutual fund where the role is very public and visible, and a critical mass is between $10 and $30bn. Managing a hedge fund provides luxuries of a less regulated environment, investment flexibility, and most importantly, more sophisticated and less emotional investors, which allow a manager to retain intellectual commitment to their process. Mr. Sanborn describes his "Long Pepsi, Short Facebook" philosophy of investing to find stocks with no competitive destruction, and warns of a coming "Mother of all Bubbles". Learn about: • Transition from a mutual fund manager to hedge fund manager • A "Long Pepsi, Short Facebook" investment philosophy • Long stocks with no competitive destruction • Short stocks with high competition that will erode valuations • Money printing and stimulus since 2001 created inflation in series of rolling bubbles • "Mother of All Bubbles" in fixed income securities Robert Sanborn is a co-founder of Sanborn Kilcollin Partners and is responsible for the investment decisions and portfolio allocation of the Adviser. Mr. Sanborn has over 28 years experience in portfolio management and investment analysis and has been a strong and consistent proponent of value investing. Mr. Sanborn was the portfolio manager of The Oakmark Fund, the flagship mutual fund of Harris Associates, L.P., from Oakmark's launch in August 1991 through March 2000. During this period, The Oakmark Fund's assets grew from $100,000 to over $9 billion. In 1998, Lipper, Inc. ranked Oakmark in the top 10% of value mutual funds, and Barron's named Mr. Sanborn the 1997 Fund Manager of the Year. Mr. Sanborn was a long-time member of Harris Associates' Board of Directors and Stock Selection Committee. Before joining Harris in 1988, he was a security analyst and equity portfolio manager for the Ohio State Teachers Retirement System, from 1983 to 1988. Mr. Sanborn holds a BA from Dartmouth College (1980) and an MBA from the University of Chicago (1983).