How does a fund manager evaluate a company before investing in it? In this episode we welcome back Bruce Campbell, President and Portfolio Manager at StoneCastle Investment Management, to share his seasoned insights on how he navigates the investment arena as a fund manager.
“Investors still tend to do the wrong things at the wrong time and it’s kind of sad, but people chase performance.” — Bruce Campbell [0:32:38]
Investing can be compared to a high-stakes sports game - packed with emotion, strategy, and unexpected twists. Bruce takes us inside his investment philosophy, revealing how he identifies and capitalizes on undiscovered growth companies.
He discusses the nonlinear nature of investing, with an emphasis on why chasing performance isn’t always the key to success. Instead, Bruce focuses on the importance of understanding capital structure, meeting with management teams, and building a strong foundation for long-term growth.
“It's not linear. We don’t expect that there won’t be twists and turns in the journey, but your job as the CEO is to keep us on the path so that when there’s a detour, we still get to our destination” [00:26:40]
Together we dive into the role of Investor Relations and how effective communication can make or break an investment strategy. Bruce shares his motivations to start StoneCastle, the challenges of launching a fund, and advice for investors looking to make smarter decisions.
“Ultimately, all of us, as investors – want the highest multiple for our stock and we want the earnings to grow at the fastest rate.” — Bruce Campbell [0:21:39]
This episode explores all the highs and lows of the investment landscape and how companies and investors can leverage this knowledge, so make sure to tune in and learn from one of the industry’s most experienced investors.
KEY POINTS FROM THIS EPISODE:
Welcoming Bruce Campbell back to the show and a brief overview of his career.
How Bruce approaches investing and his niche at StoneCastle Investment.
The importance of management and why investment success isn’t linear.
What he looks for when it comes to the positives and negatives of capital structure.
Bruce tells us about his experiences of meeting and connecting with management.
What sticks out to Bruce in investor relations as red and green flag practices.
The importance of being competitive and a good communicator as a CEO.
What compelled Bruce to build StoneCastle and what goes into creating a fund.
How Bruce develops investor relationships and why you shouldn’t chase performance.
Bruce outlines the timeframes he works in when it comes to investing.
How his beliefs about fund management have changed throughout his career.
Bruce shares some advice for companies wanting to get into retail investment.
What lights Bruce up outside of work and the kinds of podcasts and audiobooks he likes.
LINKS MENTIONED IN TODAY'S EPISODE:
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Please note that the information contained in this interview is not financial advice but for entertainment purposes. I am not a financial advisor and make no warranties or representations concerning the accuracy or suitability of the information contained in this interview. I recommend that any and all investment decisions be made with the advice of registered investment advisors.