Andrew Milgram - Full-Contact Capitalism - [Invest Like the Best, EP.436]
Episode publishedPodcast: Invest Like the Best with Patr...Invest Like the Best with Patrick O'Shaughnessy
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The best operators have a relentless focus on leverage, finding ways to multiply their impact rather than just working harder. But here's what I see happening in finance teams everywhere. Brilliant people getting buried in expense management busy work. If you think about it, you become a finance leader because you love strategic work. Modeling scenarios, optimizing capital allocation, finding the insights that actually move the business forward. But instead, you're chasing receipts and categorizing transactions. It's the opposite of leverage. This is exactly why I'm so bullish on what the team
Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purpose only and should not be relied upon as a basis for investment decisions. Clients of PositiveSum may maintain positions in the securities discussed in this podcast. To learn more, visit PSUM. VC.
My guest today is Andrew Milgram. Andrew is the founder of Marblegate Asset Management, an alternative investment firm that invests in credit opportunities and special situations. He joins me to discuss his unique approach to distressed investing in the middle market, revealing how middle market EBITDA has declined 20 to 25% since 02/2019, creating what he calls the K shaped economy. His investment stories are legendary, particularly his $600,000,000 bet on New York City taxi medallions, which we go into in great detail. We discussed Marblegate's approach to negotiation, sourcing deals directl
On and off, I think that's right.
You don't do this a lot or ever. I love the category of guests that are the first and only interviews of this type, and so I'm so excited to do it with you. And I'm especially excited because your style is so distinctive. And we'll talk about a million things related to how you invest and your personal story in getting here. But I thought a framing exercise that would be great starting place would be for you to describe this notion that you have of the K shaped economy. You do something that's very specific, and we're gonna talk about all aspects, but I wanna start broad. So tell us what the K
Yeah, so it's a notion we talk a lot about with investors and with the companies that we invest in. Everybody in The US economy at least has this underlying sense that there are some parts of our economy that are doing exceptionally well. But at the same time, they have this internal notion that there are other parts that are just worse than it seems. That there's a nagging slowness or a nagging underperformance to the economy in broad areas. They can't quite put their finger on it because they look at CNBC and Bloomberg and they read the Wall Street Journal and there's green arrows in the tic
they also understand that there are people and companies that are just not getting their piece of the pie. There's this amazing data set that you've just spent time exploring. I want you to explain the data set and then all the findings. What I want you to focus on is, so if you think about the K shape, we all know the upper part. It's the S and P A tier is what they're calling it now, FANG stocks or whatever, AI companies. We know the story that's going well. So maybe talk about this investigation that you've done recently about what's going less well and why and what you learned.
Well, I'll start with at Marblegate, we focus on the middle market. And the reason we focus on the middle market is A, it's one third of US economy. And by the way
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