Peter Troob – Monkey Business in High Yield (EP.59)

Peter Troob – Monkey Business in High Yield (EP.59)

Peter Troob is the co-Founder and CIO of Troob Capital Management, an opportunistic investor and family office with particular expertise in distressed situations. Prior to starting TCM in 2002, Peter spent six years focusing on distressed debt investing at Contrarian Capital and Everest Capital.  He started his career as an investment banker, and after his tenure in self-proclaimed purgatory, he co-authored the entertaining book Monkey Business: Swinging Through the Wall Street Jungle.

Our conversation begins with life as an investment banking analyst, and turns to competing with large distressed funds, the frothy high yield market, trickery in the CDS market, high yield ETFs, idiosyncratic opportunities, diversifying family assets, managing teams, and learning from the dinner table.

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Show Notes  

2:09 – Start of his career 

3:02 – Peter’s book Monkey Business 

3:47 – The life of an investment banker 

4:22 – Decision to leave the bank 

4:50 – His experience at a hedge fund 

5:27 – Some of his early mistakes 

6:15 – The dynamics of distressed debt investing 

8:05 – The approriate size for a distressed fund 

11:28 – What should your expectations be if you invest in a large fund 

13:12 – Short credit thesis 

18:00 – Impact of private equity owned companies on defaults 

19:49 – Shenanigans are we seeing in the CDS market 

24:36 – Concerns about high yield ETFs 

26:42 – Investing family capital  

29:16 – Sourcing idiosyncratic deals 

32:49 – What Peter has learned about managing a team 

35:43 – Hiring millennials  

36:22 – Lessons from investing mistakes 

43:05 – What is it like working with family 

45:58 – Closing questions 

49:56 – Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts