Even at the best of times, building a new portfolio from nothing is a challenging task. But for Chris Stott, Chief Investment Officer at 1851 Capital, the challenge was truly unique. After a 12-month break from the industry, he raised $80 million for his new firm (including a chunk of his own money) in late 2019. February 1st looked like a good time to start investing, given his track record of outperforming during reporting season. For the first three weeks, everything was business as usual. But in the final week of February, fear took over as reality sunk in for markets.

In this week’s episode of The Rules of Investing podcast, Stott tells us how he reacted to the changed market conditions, whether he thinks the worst has passed for markets, and he shares one Aussie small cap that's riding tailwinds from the COVID shutdowns.

Content discussed:

Time stamps:

  • 1:52 – Chris’ experience during his time-off
  • 3:52 – The challenges of starting a funds management business
  • 6:10 – 1851 Capital’s investment philosophy
  • 8:22 – The once in a decade opportunity in REITs
  • 10:35 – Building a portfolio from scratch
  • 13:03 – Unexpected challenges as he built the portfolio
  • 16:41 – Have we seen the worst of the crisis?
  • 20:58 – How Chris is positioning the portfolio going forward
  • 23:59 – Why are renowned investors getting the market wrong at the moment?
  • 27:42 – The biggest risks for markets and economies
  • 30:58 – Who might be the next US President?
  • 31:54 – A company riding tailwinds from COVID
  • 34:51 – Chris answers our three favourite questions

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Brilliant interview - really enjoyed it.

Dean Tipping

Good interview...Chris always has been and will continue to be worth listening to.

James Light

Patrick, don't make ridiculous claims like 'TrUmP wOn'T leAve OfFice'. Stick to reality.

Patrick Poke

James, Trump has said several times that he might not accept the result of the election. It's not an outlandish claim, and it's not one I've made up myself. Many US political experts are concerned it could happen - one recently wrote a whole book about it. https://www.amazon.com/Will-He-Go-Election-Meltdown/dp/15...