Andrew Brenton (Turtle Creek) - A Different Kind Of Value Investing

Andrew Brenton co-founded Turtle Creek, a Toronto-based asset manager, in the late 1990s. Since its inception, Turtle Creek has delivered outstanding returns by investing in mid-sized companies in the US and Canada. We discuss Andrew's formative experiences and evolution from private to public market investor, as well as the team's focus on unique companies and exceptional operators. We also talk about the emphasis Turtle Creek place on continuous portfolio optimisation, and other aspects of their process that make them a different kind of value investor.
Show notes:
[1:24] Andrew discusses his career and taking inspiration from John Maynard Keynes
[4:35] The benefits of public market vs private market investing
[7:59] Appreciating complexity in an uncertain world
[11:54] Competitive advantages
[15:01] The benefits of fragmented industries
[17:01] Focusing on unique companies
[19:49] Trusting great operators
[20:46] Getting the future right in a balanced way rather than being overly conservative
[23:38] Behavioural biases and collectively making intelligent decisions
[27:03] Valuing acquisitive companies
[29:27] Focusing on episodic rather than programmatic acquirers
[31:08] Portfolio construction and optimisation
[34:21] Appreciating qualitative factors and a human touch
[38:19] Turnover
[38:52] Have confidence in your views and act more quickly