Ricky Sandler - Investing Through Perception Shifts and Market Cycles

In this episode of the Value Investing with Legends podcast, Michael Mauboussin and Tano Santos interview Ricky Sandler, founder of Eminence Capital, about his investment framework, which centers on identifying shifts in market perceptions. Sandler discusses his early influences, the impact of competitive tennis on his investment style, and the evolution of his investment philosophy from quality and value to durable businesses and mispriced stocks. He emphasizes the importance of understanding investor perception, the role of short-termism and thematic investing in creating mispricings, and the need for a flexible approach to value investing. Sandler also shares insights on portfolio construction, risk management, the integration of quant and data science teams, and his views on activism and the AI bubble, providing a comprehensive overview of his approach to long-short equity investing.