With Leo Schmidt, River Eddy Capital Management
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Leo Schmidt, chief investment officer of hedge fund firm River Eddy Capital Management, joins the podcast to discuss some of his favorite ideas in three areas of the market he expects to out-perform.
These areas are: Energy, aircraft leasing, and 5G infrastructure development. Stock picks are provided, but you have to listen to the podcast to hear (most of) them.
- Energy markets: The coming supply/demand imbalance (3:03);
- Equitrans Midstream (NYSE: ETRN) and the opportunity in natural gas pipeline companies (6:43);
- The sell side’s argument against ETRN, based around regulatory risk due to environmental issues (9:08);
- Fossil fuels aren’t going anywhere, even with electric vehicles and ESG initiatives (12:51);
- Speaking of energy issues, who might be the winners and losers from the current situation in Texas? (17:26);
- What is the most appropriate historical parallel to the current state of the market? (18:52);
- Airlines are “a fantastic idea” but aircraft leasing companies may be even better (25:48);
- Favorite airline leasing companies (32:09) and how to play the “internet of things” and 5G mobile (32:47);
- More information on the guest (41:25);
- “You can’t just do the opposite of everybody. You need to have some sort of grounding principle. That principle is valuation to cash.” (48:24);
- The Gamestop Game has serious consequences (49:30);
- Could 1970s-era stagflation be in the offing? Schmidt recalls his brief meeting with the late Paul Volcker (52:09);
- The divide between Main Street and Wall Street (56:07).