FEG Investment
Advisors

Hedging Risk, Accessing Opportunity with Dave Thomas

Dave Thomas of Atalan Capital Partners shares his insights on the opportunities he sees after several years of strong market returns.

In this episode of the FEG Insight Bridge Podcast, Greg Dowling chats with Dave Thomas, founder of Atalan Capital Partners. They discuss the challenges and opportunities in the hedge fund industry, the impact of structural and cyclical headwinds and Atalan's valuation-based investment approach. Dave also shares his insights on emerging trends like generative AI and European defense spending, and why he believes Atalan’s long-short methodology may be especially beneficial today.

Tune in for an engaging discussion on the industry challenges, market risks and emerging investment opportunities in today’s hedge fund landscape.

 

Key Takeaways:

  • Hedge funds face headwinds from the shift to passive management and zero interest rate policies, challenging alpha generation and volatility management.
  • A long-short approach that manages net exposure can be a valuable strategy to mitigate risk while accessing opportunity, especially after periods of broad market increases.
  • Atalan Capital Partners invests in companies with clear valuations, maintaining a disciplined portfolio to avoid speculative investments.
  • Generative AI and increased European defense spending present investment opportunities, highlighting structural changes for long-term growth.




Episode Chapters
0:00 Podcast Introduction
1:03 Introduction of Dave Thomas 
1:46 Dave Thomas’ Journey to Wall Street 
3:32 Lessons Learned on the “Long-Short” Journey 
4:27 Launching Atalan Capital Partners 
5:41 Defining Success Over the Long-term 
8:46 Embarking on a Listening Tour 
11:06 What’s With the Name — Atalan? 
12:08 Hedged Equity 101 
13:56 What’s a Short Rebate? 
15:59 A Brutal Few Years for Hedged Equity & Active Managers, But Why?
22:24 Market Conditions for Hedged Equity to Outperform
24:25 Valuation-based Investing 
26:34 Fundamental Trends Atalan’s Focused On 
31:18 Advice for Those Starting a Fund Today 
36:25 Fun Facts About Dave Thomas 

 

Disclosures

This information was prepared by Fund Evaluation Group, LLC (FEG), a federally registered investment adviser under the Investment Advisers Act of 1940, as amended, providing non-discretionary and discretionary investment advice to its clients on an individual basis. Registration as an investment adviser does not imply a certain level of skill or training. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. Fund Evaluation Group, LLC, Form ADV Part 2A & 2B can be obtained by written request directed to: Fund Evaluation Group, LLC, 201 East Fifth Street, Suite 1600, Cincinnati, OH 45202 Attention: Compliance Department.

This information is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may receive this presentation. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation to make an offer, to buy or sell any securities.

The information herein was obtained from various sources. FEG does not guarantee the accuracy or completeness of such information provided by third parties. The information in this presentation is given as of the date indicated and believed to be reliable. FEG assumes no obligation to update this information, or to advise on further developments relating to it.