Invest Like the Best with Patrick O’Shaughnessy
Business:Investing
My guest today is Andrew Sugrue, co-founder, and partner at Avenir Growth Capital. Avenir is a growth equity firm focused on backing category-defining businesses. In our conversation, we cover Andrew’s investing career, what he learned from Julian Robertson, how counter-positioning could drive unique distribution, and the difference between good and bad growth. We also spend time examining the business model of two of Andrew’s portfolio businesses, SavageXFenty and Latch. There are so many great lessons for investors and operators to take away from Andrew. Please enjoy my conversation with Andrew Sugrue.
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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MITIMCo is also searching for an exceptional new teammate to join their internal investment team. Visit mitimco.org to learn more – click “Join” to learn more about the Global Investor Role on MITIMCo’s team or and click “Emerging Managers” to learn more about their emerging manager activities.
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Show Notes
[00:03:31] - [First question] - His journey leading up to his current firm
[00:05:55] - Lessons learned from time spent with Julian Robinson
[00:07:54] - The chip on his shoulder that helped keep him driven
[00:08:40] - Transforming his early motivators into a sustainable career-long fuel
[00:10:46] - The first things in mind when approaching a new business or person
[00:14:00] - Analysis of Savage Lingerie and learning about how that sector operates
[00:20:27] - Amazon producing a one-hour special Savage infomercial
[00:23:16] - Lessons learned from Savage that can be applied to other direct to consumer brands
[00:25:04] - Having a celebrity at the forefront of your brand
[00:26:41] - Levers and overview of apparel company income statements and how they can shape the way you grow and operate the business
[00:30:08] - Apparel companies always being tied to identity
[00:31:03] - Analysis of Latch and learning about the relationship between hardware and software
[00:33:40] - How Latch works and why you might need it
[00:38:56] - Other businesses that may benefit from understanding the events that drive demand and using it as an opportunity for customer acquisition
[00:40:12] - The concept of density of demand and the power behind it
[00:41:33] - Other areas of operations density of demand could be applied
[00:44:11] - Shared components that unite Avenir’s portfolio companies
[00:46:14] - How he thinks about the world of private investment, having lived such a diverse career
[00:50:22] - Developing relationships growing such a concentrated portfolio
[00:51:35] - Macro thoughts on the state of investing today
[00:52:59] - Defining and identifying characteristics of bad growth
[00:54:05] - The kindest thing anyone has ever done for him
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Daryl Morey - Systems Thinking in Sports - [Invest Like the Best, REPLAY]
Michael Ovitz - Knowledge Is Power - [Invest Like the Best, EP.359]
Erik Serrano - Investing in Investment Firms - [Invest Like the Best, EP.358]
Doug Leone - Lessons from a Titan - [Invest Like the Best, REPLAY]
Justin Ishbia - Lessons from Acquiring 586 Companies - [Invest Like the Best, EP.357]
Gavin Uberti - Real-Time AI & The Future of AI Hardware - [Invest Like the Best, EP.356]
A Conversation with Charlie Munger & John Collison - [Invest Like the Best, EP.355]
Peter Fenton & Victor Lazarte - Purpose and Partnership - [Invest Like the Best, EP.354]
Lior Susan - Leave the World Better than You Found It - [Invest Like the Best, EP.353]
Brad Jacobs - Think Big and Move Fast - [Invest Like the Best, EP.352]
Elizabeth Zalman & Jerry Neumann - Founder vs Investor - [Invest Like the Best, EP.351]
Palmer Luckey - Inventing the Future of Defense - [Invest Like the Best, EP.350]
Aswath Damodaran - Making Sense of the Market Pt. 2 - [Invest Like the Best, EP.349]
Patrick Collison & John Collison - A Business State of Mind - [Invest Like the Best, EP.348]
Strauss Zelnick - Playing to Your Strengths - [Invest Like the Best, EP.347]
Rick Buhrman & Paul Buser - Find Your X, Nurture Your N - [Invest Like the Best, EP.346]
Jack Altman & Miles Grimshaw - Building and Investing in Lattice - [Invest Like the Best, EP.345]
Michael Simanovsky - A Platform Approach to Real Estate - [Invest Like the Best, EP.344]
David Senra - In Service of Founders - [Invest Like the Best, EP.343]
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