Hello, I'm Ted Sides, and this is Capital Allocators.

This show is an open exploration of the people and process behind capital allocation.

Through conversations with leaders in the money game, we learn how these holders of the keys to the

kingdom allocate their time and their capital. You can keep up to date by visiting

Capital Allocatorspodcast.com. My guest on today's show is Yen Liao, the founder and

managing partner of Aravot Global, a fundamental global equity firm based in New York that manages long short and long only products.

Yen founded Arvatt after a long stint at famed family office Zipf Brothers investments, where he was part of the team that managed a market-neutral, long-short

hedge fund in a culture of framework thinking and continuous improvement.

Our conversation covers Yen's background, experience at ZBI, and lessons about process,

competitive edge, and training.

We then turned to his application of those lessons

to Aravoc Global. We discussed three right-tail strategies for long positions, the challenges

in owning compounders, the art of short-selling, portfolio construction, game selection,

drivers of success, and challenges going forward. For those lovers of learning

about the nuance of public equity investment strategies, you're in for a real treat. Please enjoy

my conversation with Yen Liao. Jen, thanks so much for doing this. Ted, so great to see you.

Thank you so much for your time.

Let's just start with your background and maybe how you first got interested in investing.

So Ted, I fell in love with business when I was really young. So I grew up in Australia.

And when I was a teenager, I just grew up completely in awe of business. And it was the creation

aspects of it that really captured me. What I meant

specifically is I always wondered how a single person could create a company or a real estate

...