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.

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