Let's recap

Thank you for being part of the eighth Sohn Hearts & Minds Conference. This year we reflected on the world we live in today, where there is a need to adapt quickly to question and challenge the status quo. The world has experienced “unprecedented” times for the last few years – shifting into persistent inflationary environments and higher interest rates– disrupting the market and forcing even the most advanced investors to rethink their approach.

Even activist investor Dan Loeb admitted his investment tactics have evolved over time and his letter writing has softened. Third Point still throws bombs and are unafraid to pick proxy fights — it is not surprising a Billions character was inspired by him – but they know they need to be collaborative and constructive with boards too. Diversity is key in this market and Third Point runs a dual strategy in equities and credit (not common in Australia), with Dan admitting credit is an attractive asset class in this economic environment.  

Dr Peter Attia spoke about the four horsemen of chronic disease impacting people today – cardiovascular, cancer, neurodegenerative (Alzheimer’s being the most common) and foundational diseases — and thankfully provided the antidote to the best way to avoid them… adopting prevention measures will likely increase our healthspan. Dr Attia particularly emphasised the importance of establishing a “why” around the life you want to lead in the “marginal decade” and build healthy habits around exercise, diet, sleep, and emotional wellbeing.  

The Markets & Macro panel recognised that markets are now facing a recalibration, with Antler’s Sheila Patel advocating for investors to consider early-stage venture capital with a chance to find the best companies, technologies, and innovation to fund and drive some great returns at an approachable price. Future Fund’s chief investment officer, Ben Samild, supported a diverse portfolio, while Atul Lele, from hedge fund Bridgewater, promoted diversification away from equities and into assets that have inflation biases and geographic variation with a focus on Asia.  

The diversity of stock picks at this year’s conference made it clear there are no easy wins in this market. Investors need to be dogged with their research and consider opportunities that others might turn their nose up at. There was a split between those who sought out undervalued stocks with dividends to protect against devaluation and those who identified companies that will benefit from interest rate cuts.