Cliff Sosin from CAS on Carvana and a bunch of other stuff $CVNA
In this episode of Yet Another Value Podcast, host Andrew Walker welcomes back Cliff Sosin of CAS Investment Partners for his second appearance. Known for his concentrated, long-term investing approach, Cliff discusses the unique characteristics of Carvana's lending model, the intricacies of subprime finance, and why he believes Carvana's comeback story deserves a closer look. The conversation explores Cliff's investment philosophy, alternative data use, and risk management, while diving deep into market misconceptions around subprime lending, inventory valuation, and self-driving cars. Tune in for a data-rich breakdown of one of the market's most discussed turnarounds.Links:YAVP with Aaron Chan on CVNA: https://www.yetanothervalueblog.com/p/recurve-capitals-aaron-chan-on-theCAS Investment Partners - https://www.casinvestmentpartners.com/Yet Another Value Blog - https://www.yetanothervalueblog.com See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer_______________________________________________________[00:00] Intro to the podcast and guest, Cliff Sosin[01:38] Cliff on his podcast return[00:02:11] Cliff reflects on past public exposure[00:05:26] Cliff’s focus in subprime and securitizations[00:12:17] Carvana’s lending model and performance vs peers[00:24:29] Alt data, trading signals, and Carvana[00:30:58] Evolution of Carvana’s operational resilience[00:34:03] What keeps Cliff up at night about Carvana [00:38:11] Risks from used car market decline[00:40:08] Potential disruption from low-cost EVs[00:47:00] Threat of autonomous vehicles[01:01:50] Stanford, Google, and Carvana[01:10:10] Tail Risks[01:13:00] Getting better with expert networks[01:18:00] My trite Cliff saying[01:19:00] What is Cliff researching now
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1:24:30
Clashing Over Commerce (Fintwit Book Club April 2025)
In this episode of the Yet Another Value Podcast FinTwit Book Club, Andrew Walker is joined by Byrne Hobart of The Diff to discuss Clashing Over Commerce, a sweeping political and economic history of U.S. trade policy. Against the backdrop of current debates on tariffs, they explore how deeply tariffs shaped American politics, the surprising economic nuance found in 19th-century policy, and the recurring tensions between protectionism and free trade. From supply chain shifts to presidential power dynamics, they unpack what history might tell us about today’s trade decisions—and what it doesn’t.______________________________________________________________________Chapters[00:00:00] Introduction to the episode and the featured book, Clashing Over Commerce[00:03:33] Byrne Hobart on why reading the book made him feel better about modern tariffs[00:07:08] The role of modern supply chains in shaping today’s trade complexity[00:10:52] Reflections on historical perspectives: agrarian vs. industrial interests[00:14:41] How lobbying and special interests shaped tariff legislation[00:19:30] The political economy of tariffs from the Civil War to the Gilded Age[00:25:22] Evolution of U.S. revenue sources and tariff enforcement mechanisms[00:30:48] Historical voting patterns and their echoes in recent trade policy[00:35:19] Shift of tariff authority from Congress to the executive branch[00:40:51] Modern-day political identity vs. regional trade interests[00:45:37] How tariffs function as economic handouts or job guarantees[00:50:44] Presidential comparisons and the rhetorical lineage of tariff advocacy[00:55:28] Historical trade-offs in trade deals: from Britain to banana imports[01:00:16] The legacy of statehood as a political tool for tariff influence[01:03:33] Critiques of the book: length, editing, and lack of a strong conclusion[01:08:49] Final thoughts on the enduring impact of tariffs on U.S. political systemsLinks:Alphasense activism webinar: https://go.alpha-sense.com/wb-imp-genai-fs-yavp-inside-boardroom/?utm_source=pt_YAVP&utm_medium=sponsored&utm_campaign=WB_DG_04-21-25_IMP-GENAI_FS_Yavp-Inside-BoardroomThe Diff Newsletter - https://www.thediff.co/ Yet Another Value Blog - https://www.yetanothervalueblog.com See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
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1:00:47
AI in Investing with Daloopa's founder Thomas Li
In this episode of Yet Another Value Podcast, host Andrew Walker shares a webinar conversation with Thomas Li, CEO and co-founder of Daloopa, diving into how AI is transforming the workflows of fundamental investors. They explore real-world applications across hedge funds and investment banks, highlighting both the promise and current limitations of large language models in financial analysis. From note synthesis to risk modeling and center book evaluations, Thomas outlines the practical realities of AI implementation, discusses adoption across firm sizes, and explains how contextual data—not just algorithm quality—is becoming the differentiator. Whether you're a solo analyst or part of a multi-manager platform, this episode offers a grounded perspective on where AI in finance is heading.____________________________________________________________[00:00:00] Andrew introduces the episode as a repost of a webinar with Daloopa on AI and investing.[00:01:58] Thomas Li outlines AI’s strength in generating language vs. processing structured financial data.[00:06:43] Discussion on practical AI use cases like cross-referencing notes with earnings calls.[00:10:12] Andrew asks how to structure analyst notes for better AI input and efficiency.[00:12:38] Comparing large pod shops and long-only firms in terms of AI adoption and internal tools.[00:17:34] Why foundational models are commoditized and context is key to AI application value.[00:22:18] The crowding factor as a risk vector and how pod shops hedge against it.[00:29:01] Generating alpha today: human edge through timing, perception, and behavioral insight.[00:35:07] Long-term value of internal data and modeling analyst performance over time.[00:41:49] How AI might evolve: foundational models vs. application layer as the value driver.[00:46:22] Adoption outlook—AI use is growing, but nuanced finance problems slow full automation.[00:52:14] Importance of internal champions (agency) to drive meaningful AI integration.[00:57:30] Center books at pod shops use AI to backtest and analyze analyst effectiveness.[01:02:40] Closing thoughts on AI’s trajectory and data as the real moat for firms.Links:Daloopa: https://daloopa.com/yavp See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
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1:05:59
Random Ramblings April 2025
In this month’s episode of Yet Another Value Podcast, host Andrew Walker goes solo with his April Ramble, recorded just before a whirlwind travel schedule kicks off. He opens with an update on KROS, a position he's long, discussing the company’s surprising move to evaluate strategic alternatives and what it reveals about investor skepticism in the busted biotech space. Andrew continues with a candidcritique of the biotech sector’s structural inefficiencies, urging investors to push harder on corporate governance rather than avoid the "activist" label. From there, he explores how stock-based compensation can become more damaging when share prices fall and reflects on the mental and strategic discipline needed in volatile markets. He closes with thoughts on AI's evolving role in investment research and the importance of continuously improving one’s toolkit. ___________________________________________________________ [00:00:00] Marketvolatility and initial thoughts on KROS[00:02:11] KROSstrategic alternatives announcement and investor response[00:03:25] Marketskepticism despite positive news at KROS[00:04:38]Encouraging shareholder engagement during the KROS review period[00:05:09]Ongoing biotech investments and calls for rationalization[00:06:25]Hesitancy from institutional investors to go activist[00:08:02]Challenges in pursuing activism and protecting future deal access[00:08:54] Thebroken incentives in biotech’s current market environment[00:10:22]Thoughts on stock-based compensation and company dilution[00:12:48] Howdeclining stock prices magnify dilution effects[00:14:06]April's turbulent market dynamics and investor behavior[00:15:13]Importance of maintaining process and staying focused[00:16:39]Evaluating portfolio risk/reward in volatile markets[00:17:23]Spotting opportunities through environmental changes like tariffs[00:20:06] Theimportance of staying in research mode during swings[00:21:17]Shifting focus to long-term projects when markets are too noisy[00:22:49]Leveraging AI for research efficiency and insights[00:24:41] Finalthoughts on adopting AI and its growing importance in investing[00:25:53]Preview of Andrew’s upcoming vacation and travel plans[00:26:27]Closing remarks and looking ahead to next month Links:See our legaldisclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
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28:00
Avoiding the Zombie Biopharm trap at Keros $KROS
In this episode of Yet Another Value Podcast, host Andrew Walker returns for a solo discussion on Keros Therapeutics (KROS), a biotech firm navigating a dramatic fall from grace. Once buoyed by hopes for its leading drug Cybo (KER-012), KROS is now reeling from halted trials and a steep drop in share price. Andrew lays out the case for why this company, despite setbacks, may still hold considerable value. He explores KROS's licensing deal with Takeda, their significant cash reserves, and questions surrounding its future direction. Calling on shareholder alignment and corporate governance, Andrew challenges listeners to consider whether KROS is veering into zombie biotech territory—or poised for a smart pivot.Stat+ article on zombie biotechs and Sutro: https://www.statnews.com/2025/03/19/sutro-bio-biotech-luvelta/Chapters:[00:00:00] Sponsor and Intro[00:03:00] Recap of Sage Pharmaceuticals as a case study in shareholder value.[00:04:48] Introduction to KROS and its recent setbacks, including Cybo’s trial halt.[00:05:05] Defining the “zombie biotech” phenomenon and why it matters.[00:08:21] Misaligned incentives between management and shareholders in troubled biotechs.[00:10:04] Why KROS’s partnership with Takeda could be its most valuable asset.[00:13:14] Review of KROS’s three main drugs: Cybo, 065, and 050 (licensed to Takeda).[00:14:55] Risk-adjusted value potential of KROS’s royalties from Takeda deal.[00:17:01] Mixed data from 065 and skepticism from analysts.[00:18:09] Potential but doubtful value remaining in Cybo post-trial shutdown.[00:18:40] KROS’s massive cash balance vs. market cap and implications for shareholder returns.[00:20:05] Breakdown of 2023 overhead and burn rate concerns.[00:21:53] Call for drastic cost cuts and corporate reevaluation.[00:23:36] Analysis of board alignment and concern over lack of urgency.[00:25:44] Why KROS no longer needs a science-heavy board.[00:28:44] Shareholder engagement as a tool to prevent value destruction.[00:31:33] Encouragement for listeners to contact the board and advocate for value-maximizing outcomes.Links:See our legal disclaimer here: https://www.yetanothervalueblog.com/p/legal-and-disclaimer
Yet Another Value Podcast is a new podcast from Andrew Walker, the founder of yetanothervalueblog.com/. We interview top investors and dive deep into stocks and companies they are currently working on and investing in. While nothing on this channel is investing advice and everyone should do their own diligence, our goal is to frequently feature edgy and actionable value and/or event driven ideas.
Please see our legal and disclaimer at: https://yetanothervalueblog.substack.com/p/legal-and-disclaimer
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