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All-in Liquidity Summit held in Eveevil, California . I am pleased to have Mr. Bill Aman with us today. He is the CEO of Persian Square Capital Management . Nice to meet you, Bill . I just saw you speaking on stage with the others at the All-in Summit . What have you felt about this summit so far ? I think it is a really good summit .
They asked questions very well, too. It is a completely different experience from having one interviewer compared to having as many as four people bombard you with questions at the same time . So I think it was a more challenging and beneficial atmosphere . You explained the capital allocation method on stage, but could you help the viewers better understand the overall context?
Our model is to discover the world's best companies . It is to become a long-term investor by investing, even in the short term, at the most attractive valuation possible—that is, a reasonable entry price . And recently, investment opportunities are also being expanded for individual investors . How are you doing?
With the help of the New York Stock Exchange, we listed a closed-end investment company called Persian Square USA . This company will essentially take the same form as other investment products that were previously offered only to overseas investors, institutional investors, or ultra-high net worth individuals .
With Persian Square USA, anyone can buy one share of stock for just $41 . What is the reason for the decision to go public ? Our business model requires long-term investment . The traditional hedge fund model, where people invest capital over several years and redeem a certain amount quarterly, may be suitable for short-term investment strategies .
However, long-term investors purchase a significant stake in a company and participate in the board of directors to help set long-term strategic directions together with management. I do not want funds that can be withdrawn in the short term . The advantage of a listed company, or a closed-end investment company, is that investors can enjoy the liquidity to buy and sell stocks every day, while their capital is preserved permanently.
This enables long-term investment in a world where short-term investment is becoming the trend . Of course, viewers can check our investment status at the ticker symbol PSUS . And at the same time, we also listed a company called Persian Square . So, we are operating under the name Persian Square instead of Persian Square Capital Management .
Persian Square is an asset management company, that is, a GP ( General Partner) or alternative asset management firm, and it is the company where I serve as CEO . It is a very interesting business, similar to what other alternative asset managers, including Blackstone, do , but our differentiating factor is that capital is permanently preserved .
So, the company receives fees over time as its asset size grows . This asset grows not through fundraising (although, of course, new funds can be launched ), but through the effect of compounding . For example, if you perform well this year, assets under management (AUM) will increase, fees will increase, and the company's profits will increase.
Both companies are interesting. One is a company that manages a diverse portfolio of securities like Persian Square, and the other is an operating business. What other methods could be used to make investments, including retirement accounts, more accessible to Americans ? yes . I have always believed that the size of the capital should not be the criterion for investment .
If you want a standard based on a specific level of investment experience, today's standards are generally based on net worth. I believe that if one takes and passes a kind of test, they should be recognized as a qualified investor instead of meeting a specific capital requirement. What is your view on the current overall market situation ?
Well, honestly speaking, it is difficult to define the overall market in a single word . The market is polarized, and it is an interesting phenomenon that many significantly undervalued stocks are being found within a market that is hitting all-time highs . As you know, with much attention focused on semiconductors and memory chips , and with the focus on upcoming IPOs , interest in companies that people consider outdated has relatively decreased.
Companies like Meta and Microsoft are considered old-fashioned today, so they attract less interest from investors . That is why the stocks of such companies are significantly undervalued . yes. Well, so we are finding a lot of undervalued stocks , and we are also looking to see if there are any overvalued stocks .
Of course, 2026 is an important year. The stock market is expected to hit an all-time high this year . There are midterm elections, the 200th anniversary of the United States, and its 50th birthday. First, let's talk about the midterm elections . There are likely stocks you are investing in among the stocks you invest in at Persian Square .
If typical volatility appears ahead of the midterm elections, would it be a buying opportunity? That could be the case. The market can be broadly divided into two elements . One is stock holdings, and the other is the increase in index holdings, which is a very important phenomenon today . The valuation of companies not included in stock indices varies significantly.
For example, McDonald's is included in the S&P 500 index, but restaurant brands including Burger King, Tim Hortons, etc., are not included in the index because they are Canadian companies . Therefore, the weighting of the index is relatively low. Restaurant brands have the advantage of faster growth and better business diversification .
While there may be arguments that it should be trading at a higher multiple than McDonald's , in reality, it is significantly undervalued. Why is that? This is because it was not included in the index . More and more funds are being injected into index investments, and this is becoming an increasingly important factor .
In addition to the stocks included in the index, there are many investors investing through index funds, so massive capital is being managed in a very stable manner . In addition to investing in this type of index fund, so-called 'potshops' such as Millennials and Citadel are investing a lot of capital .
They are attracting more and more capital and employ short-term investment strategies. They are responsible for the marginal trading of many securities, and as a result, volatility increases further. This is because such models require setting very strict risk limits . You must stop investing if losses exceeding a certain amount are expected .
As a result, even large corporations can see their stock prices fluctuate sharply due to poor performance, changes in earnings forecasts, or other news events . As such, tremendous volatility is occurring , and geopolitical factors and midterm elections will also affect this volatility . If unexpected variables arise, it could have a negative impact on the market .
For example, I think that if the Senate leans toward the left, it will have a significantly negative impact on the market . July 4th of this year marks the 250th anniversary of the United States . What do you think it means? The interesting thing is that my turning 60 coincides with the 250th anniversary .
Congratulations. thank you. 250 years feels like a fairly young age for the country of the United States, doesn't it? Because it's only about a quarter of my life . The United States is only four times my age , which is something I never even imagined when I was 10 years old . Countries these days feel very old, don't they?
I think the history of the United States is really short. So, I believe the fact that the United States has existed for such a long time is significant . Well, as you know, what is truly amazing is that these people, who were relatively young at the time, drafted the Constitution and the Bill of Rights , and established freedom of the press and a republican system of government .
That system has worked remarkably well for over 250 years despite all our flaws . That is really amazing. What would you like to see over the next 250 years ? I want to see American exceptionalism continue and divisions diminish. yes. Imagine us all standing on the same side . Rather than constantly wavering back and forth like now, with one side hurling venom at the other .
I do not like it when only half the audience stands up when a president of a certain party gives a State of the Union address . I think it looks a bit foolish . Are you optimistic that we can achieve greater unity ? It depends on leadership, and today depends on leadership. I think social media is actually having a harmful effect , and the way algorithms work is also a problem .
We need to redesign social media to bring it together rather than divide it . I think we need to put in more effort like that . Are you making such efforts through your entire account? I always try to speak the truth about the things I consider important , and I hope that helps, even if just a little.
Yes, Mr. Bill Aman, CEO of Persian Square, thank you very much for attending the Olin Liquidity Summit .
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