March 3, 2006
Twelve students from the Financial Economics Institute traveled to Santa Monica on March 3 to meet with executives and analysts from Dalton Investments. Dalton pursues a number of investment strategies, including global hedged equity, global distressed debt and Greater China equity long-short. Dalton was founded in 1998 and has $1.1 billion in assets under management.
Andrew Preikschat ’97, Portfolio Manager of Edgebrook Investments, coordinated the visit. Preikschat began the visit by providing the students with an overview of the alternative investment industry and its increasing significance in the financial services industry. Preikschat then offered brief explanations of the myriad investment strategies employed by different types of hedge funds.
The group next met with Steve Persky, CFA, the co-founder and CEO of Dalton Investments. Mr. Persky was very forthcoming about his experience in the financial services industry and what it was like to start a firm from scratch. He took a number of questions from students on topics such as the evaluation process for potential managers and specific investment strategies.
The students also had short visits with several other members of the Dalton team. The firm’s CFO, Arthur Hebert, discussed the importance of back-office operations for investment management firms. Analyst Andrew Lahde told the students about his strategies for shorting equity and specifically what he considers the optimal short. Finally, Analyst Marc Sherman shared his experience in industry and his views on the prospects of the airline sector, which he covers for Dalton.
After the meetings, the group had lunch in Santa Monica with Preikschat, Hebert and Sherman. This relaxed environment engendered additional questions and promoted prolonged discussion on a variety of topics.
The students are extremely thankful to Preikschat and the other members of Dalton for providing a fun and informative experience.