The man behind a $6 billion hedge fund says 'the most dangerous investors' have one thing in common

Ricky SandlerGetty Images/Scott OlsonEminence Capital’s Ricky Sandler

Ricky Sandler, the founder of $6 billion long/short equity hedge fund Eminence Capital, wants to hire folks with the “desire to win above the desire to be right.”

Sandler spoke on Thursday at The University of Texas Investment Management Company 20th anniversary event in Austin.

His fund takes a bottom up, fundamental approach to investing in equities. There have been some changes in the market such as the growth or ETFs and the rise of quants that has made investing “a little less micro in nature,” he noted.

“For us, it is no longer good enough to have a quality business and a cheap stock and think that’s it’s worth more,” Sandler said.

“One of the biggest skill sets we find in people, and maybe this is a softer skill set, is the desire to win above the desire to be right.”

Sandler said that there are people in the hedge fund industry who are extraordinary at interactions, debating, and can be extremely convincing.

“They are often very dangerous investors,” he said. “We love…those kinds of people who are willing to admit when they are wrong, or when it’s not a game that is worth playing.”

See, it’s OK to admit when you’re wrong. That’s called humility.

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