Sunday, July 12

On Astorg

I am in Paris for a couple days and now in the midst of fundraising for Astorg's sixth fund. Our target is €1.5bn, a large amount, but in line with the last GP. Astorg has delivered strong performance while protecting retirement, workers and teachers money - since 1998, Astorg has lost €30m on €1.9bn of invested capital for a low loss ratio of 1.7% (the figure drops to 1.4% if co investment controlled by the GP include in the denominator).

Astorg's strategy similar to any value investor : buy niche leading global companies that enjoy large market shares and barriers to entry like economies of scale or scope. All the things I learned in a few key classes of business school (the best class, Value Investing, taught by Bruce Greenwald, close friend and advisor to Warren Buffet. Greenwald would tell his class of 300 students that he taught for the 2 or 3 students who would be able to employ his concepts. Bruce asked me to be his TA second year). Astorg has not had a write down or write off in ten years.

Eitan runs a 1500m in 3:35 at Crystal Palace.

Eitan: "Do I really have to do this again?"
Me: "What you will find in life is that if you don't do a good job on the final 2% you won't get credit for the 98."