Peter Troob – Monkey Business in High Yield (Capital Allocators, EP.59)

Capital Allocators – Inside the Institutional Investment Industry

Ted Seides – Allocator and Asset Management Expert

Investing, Capitalallocation, Business

4.8 • 806 Ratings

🗓️ 2 July 2018

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Peter Troob is the co-Founder and CIO of Troob Capital Management, an opportunistic investor and family office with particular expertise in distressed situations. Prior to starting TCM in 2002, Peter spent six years focusing on distressed debt investing at Contrarian Capital and Everest Capital. He started his career as an investment banker, and after his tenure in self-proclaimed purgatory, he co-authored the entertaining book ‘Monkey Business: Swinging Through the Wall Street Jungle.”

Our conversation begins with life as an investment banking analyst, and turns to competing with large distressed funds, the frothy high yield market, trickery in the CDS market, high yield ETFs, idiosyncratic opportunities, diversifying family assets, managing teams, and learning from the dinner table.

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Show Notes

2:09 – Start of his career

3:02 – Peter's book Monkey Business

3:47 – The life of an investment banker

4:22 – Decision to leave the bank

4:50 – His experience at a hedge fund

5:27 – Some of his early mistakes

6:15 – The dynamics of distressed debt investing

8:05 – The appropriate size for a distressed fund

11:28 – What should your expectations be if you invest in a large fund

13:12 – Short credit thesis

18:00 – Impact of private equity owned companies on defaults

19:49 – Shenanigans we are seeing in the CDS market

24:36 – Concerns about high yield ETFs

26:42 – Investing family capital

29:16 – Sourcing idiosyncratic deals

32:49 – What Peter has learned about managing a team

35:43 – Hiring millennials

36:22 – Lessons from investing mistakes

43:05 – What is it like working with family

45:58 – Closing questions

49:56 - Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts

Transcript

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0:00.0	Capital Allocators is brought to you by Ten East, an investment platform for sophisticated investors to access private markets.
0:10.5	Ten East brings benefits of having your own family office without the cost and headaches of doing so.
0:16.8	It's founded and led by Michael LaFelle, former deputy executive managing member of Davidson Kempner.
0:24.2	Michael and his investment team offer members the opportunity to co-invest by offering at their
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0:53.5	across more than 350
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1:01.8	just as you'd expect from an institutional investment organization. I've known Michael for about a
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1:17.1	in multiple offerings. You can learn more and join me as a member at 10-east.com. That's the number 10,
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