Technology analyst Ami Joseph joins host Daryl Jones in our 14th installment of In The Arena. Ami has a wide array of industry experience and almost two decades of buy-side and sell-side experience covering the technology sector.
Ami discusses experiences early in his career including working at Fidelty and Putnam. He also discusses starting his own firm (Joseph Capital Partners), the worst call of his career, and the challenges and opportunities he sees in the Technology space.
Ami talks about covering international stocks and the learning curve associated with the different styles in accounting:
I learned to sort of gradually trust the Japanese accounting, it was one in every zillion where that wasn't going to go right. The Korean account I knew like never to fully trust, but more or less directionally I could go with. The Taiwanese was mostly faultless. China was where I had the biggest learning curve where we were a page one holder of a company called Longtop Financial Technologies a Nasdaq traded company, $2 billion market cap. Tiger owned 11% of it, Fidelity on 13% of it, Putnam owned 7% of it, I believe. And, it went to zero. It was a Canadian CFO who had been CFO of a number of different Nasdaq listed, successful companies. And, there was a fraud. So that was a good learning experience in that.
Later on in the conversation Ami opens up about developing his deep-dive research process and how that edge helps him beat the other big names in the game:
The process we've been building at Hedgeye, the super going deep has really helped us approach some complicated opportunities and make differentiated choices. I think the work we did on ADT on the short side was sort of breakthrough work. I think the work we did recently with shorting Lyft on the IPO. It was complicated. I mean not to take away from Mad Money Jim Cramer who on the first tick was saying buy the stock. There are reasons to say that he's not an idiot and the fact that Citron Andrew left was out saying don't short Lyft that the amateurs are shorting Lyft. You know, I got that and at first I had a little panic in my heart. I was like, geez, I mean he's Andrew Left. I may not know something, maybe I'm missing something. But it turned out I actually knew a lot more than him because we had done the deep work. So a few of these calls like my best evers for me have come in the last 18 months since joining Hedgeye and developing this process.
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