The unspoken rules of Wall Street’s best hedge funds

The Rules of Investing

Livewire Markets

Working as a young analyst on Wall Street, Qiao Ma, Portfolio Manager at Cooper Investors, had the privilege of direct contact with legendary hedge fund manager, Julian Robertson. Qiao worked at Coatue Management, one of the famous “Tiger Cubs” that spun off from Julian’s Tiger Funds Management. It was an incredible experience to be grilled by Julian about a stock you covered, but she warns that it was important you’d done your homework well.

“Julian had an unspoken rule, if you cover a stock, or you pitch a stock, you better know more about that stock than anyone else in the world. He doesn’t care that you sit in New York and you’re talking about a stock based in New Delhi. You better know more about that stock and that management team than any local investor.”

In this episode of The Rules of Investing podcast, we discuss how she applies that same principle with her own analysts. Qiao also shares her experience in China at the start of the COVID-19 outbreak, how one of her first investments saw 15% of its value evaporate overnight, and some of the exciting opportunities she's seeing throughout Asia today.

Time stamps:

  • 2:57 - How Qiao’s first trade on Wall Street went awfully wrong and taught her the importance of due diligence on management
  • 7:00 – The unspoken rule of Julian Robertson the “Godfather of US Hedge Funds”
  • 11:48 – Why many perceptions about investing in Asia are out of date
  • 15:14 – The behaviours that set founder led firms apart from the rest
  • 20:19 – Qiao’s experiences from being on the ground in China as COVID-19 broke out
  • 23:18 – How COVID-19 put a spotlight on the highest quality companies
  • 25:05 – Permanent vs temporary change emerging from COVID-19
  • 27:25 – The fertile investment opportunity in India
  • 33:04 – The 10-year opportunity that Qiao is most excited about
  • 34:49 – The compelling thesis behind China Mengniu Dairy Company Limited (2319:HK)
  • 39:44 – Qiao answers the three regular questions

Content discussed:

Outside of a defunct looking Yes Bank branch, the competitive banks set up makeshift booths (with security guards) to line up Yes Bank customers.

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This article is for informational purposes only and should not be considered financial advice. The article may contain the views or opinions of third party contributors to Livewire Markets. These contributors have not considered your objectives, financial situation, or needs. The information in this article should not be relied upon as a substitute for personal financial advice. Livewire Markets recommends that you seek independent advice before you apply for any financial product or service. Livewire Markets is exempt from requiring an AFSL under ASIC Regulatory Guide 36, section 66.

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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...

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