Ski mountaineering can be tremendously risky if not approached correctly. For Darren Maupin, the Founder of Pilgrim Global, technical skills combined with a conservative and thoughtful risk management framework are essential for him to navigate the hazards inherent to the mountains in winter.
In global stock markets, Darren has found an edge in seeking out perceived danger, focusing on situations where entire sectors or countries are dislocated, out of favor, and where price formation is irrational. Pilgrim Global follows the admonition of Sir John Templeton to look for ideas where the outlook is worst. Darren believes this style of investing is far less risky than it appears — and his reward is often being nearly the only institutional investor in the space, just when the margin of safety is greatest. With this strategy, Pilgrim Global has quietly grown to $100 million assets under management – without marketing – since its launch in mid-2011.
Broad-based dislocations tend not to be about company-specific issues. These environments are highly conducive to creating bargains because of emotional and non-economic price formation. When Russia experienced a massive decline in its stock market in 2014, Pilgrim Global recognized the tremendous opportunity to invest in two Russian companies, Moscow Exchange and Sberbank, that surged as the economy recovered. More recently, Pilgrim Global has been active in investing in dry bulk and container shipping during the worst bear markets those industries have experienced in decades.
At the 2018 Santangel’s Investor Forum, Darren — who lives in the Swiss Alps — will share why he turned away from special situations and company specific blow-ups to focus on broad-based dislocations. He will also present a recent investment idea.