On today’s episode, Clay is joined by Derek Pilecki.
Derek is a managing member and portfolio manager at Gator Capital Management, which manages Financials sector long/short portfolios for private partnerships and mutual funds. Since its inception in July 2008, Gator Capital has compounded capital at 21.0% per annum versus 11.8% for the S&P 500 over the same time period.

IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:48 - Derek’s experience of launching a financials-focused fund 10 weeks before the collapse of Lehman Brothers.
12:13 - Derek’s advice to aspiring hedge fund managers.
14:30 - How Derek achieved a return of 186% in 2009.
14:30 - What led Derek to purchase General Growth Properties, whose stock increased by 20x in less than one year.
23:25 - Why Warren Buffett likes financial companies, especially the big banks.
27:38 - Why Derek puts his focus on financial companies.
33:36 - How banks can create a sustainable competitive advantage in their market.
36:08 - Why First Citizens Bancshares is Derek’s top position in his fund.
46:44 - An update on the current market conditions for banks.
50:21 - How a high inflation environment would impact banks.
52:53 - Why Derek is long Robinhood.
And so much more!

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES
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<li>Join the exclusive <a href="https://www.theinvestorspodcast.com/mastermind-2/">TIP Mastermind Community</a> to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.</li>
<li>Derek’s fund: <a href="https://www.gatorcapital.com/">Gator Capital</a>.</li>
<li>Derek’s <a href="https://www.gatorcapital.com/research-request-access">letters</a>.</li>
<li>Related Episode: Listen to <a href="https://link.chtbl.com/WSB634">TIP634: Value Investing Fundametals w/ John Huber</a>, or watch the <a href="https://www.theinvestorspodcast.com/episodes/value-investing-fundamentals-w-john-huber/">video</a>.</li>
<li>Follow Derek on <a href="https://x.com/gatorcapital?lang=en">Twitter</a>.</li>
<li>Follow Clay on <a href="https://twitter.com/Clay_Finck">Twitter</a>.</li>
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Stig T. Brodersen

Preston Pysh

William Green

Clay Finck

TIP669: Quietly Compounding at 20%+ Per Year w/ Derek Pilecki

On today’s episode, Clay is joined by Derek Pilecki. Derek is a managing member and portfolio manager at Gator Capital Management, which manages Financials sector long/short portfolios for private partnerships and mutual funds. Since its inception in July 2008, Gator Capital has compounded capital at 21.0% per annum versus 11.8% for the S&P 500 over [&hellip;]

We Study Billionaires Episode #945

TIP669: Quietly Compounding at 20%+ Per Year w/ Derek Pilecki