Mr. Barac is the founder of Barac Capital Management, LLC. Prior to founding the company, Mr. Barac held a variety of roles in institutional securities research and trading.
Mr. Barac graduated from Trinity University (San Antonio, Texas) in 1989 and received a Master’s in Business Administration degree from Southern Methodist University (Dallas, Texas) in 1998. During his graduate studies, Mr. Barac’s broad-based business studies included a focus on international business which included an internship with Bank Boston’s media and telecommunications lending group in Buenos Aires, Argentina and an international exchange semester at the E.S.A.D.E. Business School in Barcelona, Spain.
Following his graduate studies, Mr. Barac went to work for Moody’s Investors Services in New York, New York in 1998 and transferred to their London, England offices in 1999. At Moody’s, Mr. Barac became a Senior Credit Officer/Vice-President and lead analyst with responsibility for the credit ratings of a multi-billion dollar portfolio of high-profile European leveraged finance companies. As an expert in leveraged finance and corporate credit risk analysis, Mr. Barac was a regular speaker for Moody’s and was regularly quoted by major financial publications (e.g. the Wall Street Journal Europe, Financial Times, New York Times, Bloomberg News, and The Times of London).
From 2005 to 2007, Mr. Barac worked at Schroders Investment Management, an investment management firm with assets under management in excess of $200 billion, headquartered in London, England. At Schroder’s, Mr. Barac was responsible for identifying profitable fixed-income trade ideas from within a portfolio of European high-yield and investment grade corporate bond issuers. Mr. Barac’s work at Schroder’s earned him selection for the company’s elite merit-based Business Leadership Program.
Mr. Barac continued his work in corporate securities analysis with Barclay’s Capital (also in London, England) where he worked as a Director in their Principal Strategies Group from 2007 to 2008. At Barclays, Mr. Barac was a proprietary analyst and trader responsible for investing a portion of Barclay’s capital through a combination of bonds, stocks, and fixed-income derivatives (credit default swaps).
Following his return from London to Austin, Texas in 2008, Mr. Barac founded, established, and now actively manages the Barac Capital Management, LLC.
I am an investment manager at GFM Group, which offers segregated portfolios and also manage a private portfolio called Lexington Wall Partners. I have just under 20 years of finance experience gained in New York, London and Hong Kong and hold two masters degrees in finance.
I invest in value and special situations, long and short. My ideal portfolio would be 100% long and 60% short. The long side would be filled with 10-15 Buffett type compounders / Greenblatt type spl. sits. / Pzena type cyclicals.The short side would be sized much smaller, and be filled with frauds and failures and with a visible catalyst to break the status-quo.
This style of investing requires large amounts of due diligence and field verification to develop the required conviction, especially when positions move against me.
At the end of the day, I am a bottom up investor, and tend to look for "low risk, high optionality" type of opportunities. I believe in this approach to investing, as practiced by investors like Mohnish Pabrai, Joel Greenblatt and Marty Whitman.
For me, risk is permanent loss of capital, not volatility or temporary drawdowns. I avoid margin leverage, try to keep my long-position turnover low, and express my positions through stocks, bonds or listed options.
My edge comes from three sources: a) ability to deploy both my corporate finance and options trading job experience in evaluating an opportunity, b) an long position holding period of around 3-5 years, which I find has less investor competition for returns, c) deploying sticky capital which gives me enormous staying power and an edge over investors who manage shorter term capital in general.
I believe that investing successfully is like running a marathon. Its a result of hard work, Charlie Munger's "worldly wisdom" and luck. Its a discipline where experience is cumulative - I make better decisions than I used to, my learnings from the past strengthens my current research. My heros are investors like Joel Greenblatt, Mohnish Pabrai, Marty Whitman, Charlie Munger and of course, Warren Buffett. I admire not just their investment acumen but also their generosity in educating the world in the craft of prudent investing.