Chris Hentemann, Founder and CIO, 400 Capital Management
Episode publishedPodcast: Alpha ExchangeAlpha Exchange
Transcript preview
Preview only
But what we do like is we recognize that power is in huge demand. Power's got some old school technology, not new technology that has, let's call it depreciation schedules and secondary markets and most importantly, alternative uses beyond whether it works around the data center or not, that I think we tend to like and it's in demand. There's good bid for it, there's good price support for the asset, we can identify the asset, we can lend against it and for some reason, if it doesn't go through, it's an asset that can be transferred or has an alternative use.
Hello, this is Dean Kernutt and welcome to the Alpha Exchange, where we explore topics in financial markets associated with managing risk, generating return, and the deployment of capital in the alternative investment industry.
I'm joined today by Chris Hentiman. He is the founder and chief investment officer of four hundred Capital Management, a hedge fund focused on delivering returns uncorrelated to equity markets, credit markets, and focused on asset based credit. Chris, it is a pleasure to have you on the Alpha Exchange today.
Yeah, Dean, thanks a lot for inviting me.
I'm glad to finally have the opportunity to sit down with you directly. You've been generous enough to speak at my MacroMind symposiums. You spoke in 2021, 2024. So you lent your time and your insights to that project. It's just gonna be a lot of fun to sit down and really dive into your investment process and what four hundred Capital Management does. You and I are old colleagues from our BofA days, and we share something else in common, which is we launched our respective firms in the teeth of the financial crisis. And that's really where I wanted to start. So four hundred Capital Management
I appreciate the introduction. If you don't mind, it kind of was always in my DNA since I got in the business in 1990. I started at First Boston in 1990, I worked at Salmon Brothers and then I joined BofA in 1996. I'd always been in a trading role, which I always felt was very entrepreneurial, know, here's some capital, here's a seat, your job is to make some money, build some expertise and an edge and you're you know, effectively working for the house and being in sort of the mortgage asset based structured product business, it was incredibly creative, it was growing and I happen to have just
Yeah, I mean, certainly launching during, you know, a period where prices are dislocated. And I launched agency broker dealer. It's not nearly as complex as a hedge fund. A hedge fund needs lots of different partners. Right? Prime brokerage partners, technology. There's so much going on there and the street itself is a big partner. And of course, the street was kind of on its knees at that point, which must have made it more challenging. As you talk about your history, I can't help but ask about the CS, First Boston, and Solly Days. Neither of those firms exists independently anymore, but they
It's a great question. I never really had anybody frame it that way to me. Having to basically think about it and as simple an answer I can give you, I would say, they had basically at the points in time I was there, they had two probably really good attributes is they had very bright people that were very innovative And they were innovative and enjoyed what they were doing. And they had an incredibly good risk culture. So they actually were creative, innovative, and could figure out how to basically turn that into an economic outcome. And they could do it in a way where they knew how to take
I want to take us back twenty years. It's 2006. In some wa
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.
Go deeper with this episode
Generate a summary and deeper analysis from the existing transcript.