Evermore’s David Marcus: Crisis Creates Opportunity

Published on

An excerpt from ValueWalk’s interview with David Marcus, Co-founder, CEO, CIO of Evermore Global Advisors discussing how crisis creates opportunity. Read the full interview on ValueWalk Premium.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q2 2020 hedge fund letters, conferences and more

Crisis Creates Opportunity

Well, I think that crisis creates opportunity. It always has it always well. The crisis each time is different each time it’s for another reason. We can go back as far as you want in history. Sometimes it’s a health crisis. Sometimes it’s an economic crisis. Sometimes it’s both. We now have one that started as a health crisis that’s become an economic crisis. And investors always will say, this time is different. And then they tell you why it’s different. And if you read my last was my I don’t remember. I think it was my last. It might have been my urine letter. Or maybe it was my cue. one letter I talked about. This time is different. But then I had the next couple of sentences where my point was, it is different, but maybe not for the reasons people think about.

It’s different because of the reaction. You have governments around the world may be slow out of the gate. I don’t want I’m not going to sort of get into who was early who was late. Forget all that. I don’t I can’t deal with that. At this point, I have to deal with the facts as they are, maybe come countries where we’re a little late out of the gate or slow out of the gate. But the reality is that the global sharing of information now, the global throwing money at it, for vaccines for testing, for all kinds of things related to this pandemic. It’s unprecedented the scale of the money on the health side. And on the economic side, you have multi trillion dollars of just enormous capital coming into the markets in the US, as we’ve all seen with these stimulus programmes and all kinds of programmes. So the government was very aggressive, I think very rapidly in the past we’ve seen it where it just took a lot longer through a process for these kinds of things to happen. There’s glitches, there’s problems. There’s all kinds of things going on with with trying to get capital into the market and to people in the country who are in all kinds of economic situations today with lots of issues everywhere.

Investing In Europe

But the fact is, the floodgates are open for capital coming in, for individuals for corporate, all kinds of things. We’re seeing the same internationally. We’re seeing it also at unprecedented levels. I think if you look, we invest a lot in Europe. We’re global, we can go anywhere in the world. But we have more investments in Europe than we have anywhere else. And that’s been the case since we launched the firm over 11 years ago now. And look at what’s happening in Europe. You have Germany France and others, putting all kinds of programmes in place. Now they are a little slower to these programmes. But the scale is incredible. It’s absolutely incredible. And you even have the EU now with announcements of EU sort of centred pockets of capital that can be tapped by countries. That’s a game changer. That’s an absolute game changer because normally in the crisis periods, the country seems to sort of devolve back to their own borders and focus on what do we need to do for ourselves and our, our citizens, and the fact that the EU is really stepping up and being much more involved and really in the middle of this. I think it’s fantastic for the future. Future of Europe and the future of Europe that instead of, again devolving and pulling back, there’s a big push to, while they are focused on each end and every one of their own separate groups of issues. There’s a collective perspective from the middle.

Again, I think crisis creates opportunity. And I think for the EU, this crisis is the chance for the EU to tighten the whole group to think more cohesively. And for example, if they do a big infrastructure spend from the EU, and that can flare out to the countries that are part of the EU. Wow, I mean, that’s going to be very powerful to have the this, this forever talk about how they’re going to tighten this thing up, which is always a tomorrow story, but it becomes more of a today story. So when I talk about going back to my letter, it was q1, where I should just Time is different. As I said, it’s different, because it’s a different crisis. And it’s different because it’s the way countries and individuals are reacting, quarantining all of that. But the net of it all, is the other side of it. It’s always the same. That crisis as I said it before crisis creates opportunity.

Read the full interview on ValueWalk Premium.