Herb Wagner – Opportunistic Value at Finepoint Capital (EP.460) | Capital Allocators – Inside the Institutional Investment Industry

In this episode of Capital Allocators, Ted Seides interviews Herb Wagner, the managing partner of Finepoint Capital, a $4 billion opportunistic value hedge fund. Herb discusses his early life and career, including formative jobs and influential mentors like Seth Klarman and David Tepper. The conversation explores the evolution of value investing, Finepoint's investment strategies—emphasizing wide sourcing, deep research, and catalyzed opportunities—and current investment opportunities in Japan and reinsurance. Herb shares his insights on adapting to market changes, the importance of leadership assessment, and risk management, providing a comprehensive view of Finepoint's approach to compounding capital over the long term. The episode also touches on Herb's involvement in the Boston Red Sox and his philanthropic work through his foundation.

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Herb Wagner – Opportunistic Value at Finepoint Capital (EP.460)

Capital Allocators – Inside the Institutional Investment Industry

Introduction to Herb Wagner and His Early Life

The Spark of Finance and Early Career in Distressed Debt

Transition to Appaloosa and Baupost: Mentorship and Investment Styles

Contrasting Investment Philosophies and the Evolution of Value Investing

Assessing Leadership and the Credit Markets Today

Finepoint Capital's Investment Approach: Global Opportunistic Mandate

Identifying Opportunities and the Appeal of Japan

Overcoming Barriers to Investing in Japan and the Government's Role

Sub-Strategies in Japan and Growing Exposure

Opportunities in Reinsurance and Risk Management in Japan

Climate Change and Portfolio Construction

Biggest Mistakes and the Evolution of Finepoint

Passion for Baseball and Philanthropic Work

Hobbies, Joys, and Future Aspirations

Herb Wagner – Opportunistic Value at Finepoint Capital (EP.460)

Capital Allocators – Inside the Institutional Investment Industry

00:00Introduction to Herb Wagner and His Early Life

Introduction to Herb Wagner and His Early Life

05:01The Spark of Finance and Early Career in Distressed Debt

The Spark of Finance and Early Career in Distressed Debt

12:10Transition to Appaloosa and Baupost: Mentorship and Investment Styles

Transition to Appaloosa and Baupost: Mentorship and Investment Styles

17:23Contrasting Investment Philosophies and the Evolution of Value Investing

Contrasting Investment Philosophies and the Evolution of Value Investing

23:11Assessing Leadership and the Credit Markets Today

Assessing Leadership and the Credit Markets Today

28:04Finepoint Capital's Investment Approach: Global Opportunistic Mandate

Finepoint Capital's Investment Approach: Global Opportunistic Mandate

33:57Identifying Opportunities and the Appeal of Japan

Identifying Opportunities and the Appeal of Japan

39:26Overcoming Barriers to Investing in Japan and the Government's Role

Overcoming Barriers to Investing in Japan and the Government's Role

44:09Sub-Strategies in Japan and Growing Exposure

Sub-Strategies in Japan and Growing Exposure

48:46Opportunities in Reinsurance and Risk Management in Japan

Opportunities in Reinsurance and Risk Management in Japan

53:51Climate Change and Portfolio Construction

Climate Change and Portfolio Construction

1:01:23Biggest Mistakes and the Evolution of Finepoint

Biggest Mistakes and the Evolution of Finepoint

1:07:42Passion for Baseball and Philanthropic Work

Passion for Baseball and Philanthropic Work

1:13:22Hobbies, Joys, and Future Aspirations

Hobbies, Joys, and Future Aspirations