Founder, President and Co-Chief Investment Officer, Elliott Investment Management L.P.
The David Rubenstein Show: Paul Singer
"The David Rubenstein Show: Peer-to-Peer Conversations" explores successful leadership through the personal and professional ...
Transcript (30 segments)
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David Rubenstein0:03
What was the strategy that you used? How does someone raise five billion dollars in 24 hours? You have an image of striking fear in CEOs.
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Paul Singer0:06
I was completely determined to recapture my parents' money that I had lost. It was first-come first-served. It doesn't bother me anymore. If someone had invested from the beginning, that one dollar became about $160.
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David Rubenstein0:50
I don't consider myself a journalist. I began taking on the life of being an interviewer, even though I run a private equity firm. How do you define leadership?
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Paul Singer1:04
It wasn't exactly true that we raised five billion in 24 hours. It took months of preparation. We have about $34 billion now. I started in 1977 with $1.3 million from friends and family.
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David Rubenstein2:19
You grew up in Teaneck and Manhattan, went to University of Rochester and Harvard Law. You practiced law in New York. Was it hard to give it up?
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Paul Singer3:10
My dad was a retail pharmacist. We traded stocks and lost money in every conceivable way. When I started Elliott in 1977, I used convertible bond hedging to make money consistently. Over time, I added distressed securities and equity activism.
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David Rubenstein4:26
When did you realize you were better than average? What would you describe your investment technique as?
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Paul Singer4:33
I never thought of it that way. I was focused on absolute return. We call our approach multi-strategy or absolute return. A key part is doing manual activities to control risk, which led to bankruptcy distressed and activism.
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David Rubenstein6:15
You bought bonds from Argentina and held on for a long time. Was it hard to hold on?
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Paul Singer6:38
It was not hard in a portfolio sense because the previous governments never negotiated. The claim mounted up. No investors told me to move on. My mother stayed invested from the beginning and saw a 13.5% net compound return over 40 years.
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David Rubenstein8:41
You like to invest retroactively. Your image of striking fear in CEOs bothers you?
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Paul Singer9:02
It's good when a corporate executive listens with the understanding that we are real and have the capacity to carry through. I've learned not to care too much about opprobrium.
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David Rubenstein10:08
Do you ever do research and call up a CEO with suggestions? Do they sometimes agree?
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Paul Singer10:19
Sometimes we are knocking on an open door. We do thorough work, test ideas privately, and generate dialogue. I have about 120 investment professionals. My co-CIO John Pollock has been with me since 1989.
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David Rubenstein13:18
You have an image of striking fear. Does that bother you?
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Paul Singer13:32
I've learned not to care too much about unfair press. It doesn't bother me anymore.
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David Rubenstein14:12
How do you see the economy right now? Are you worried?
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Paul Singer14:15
I'm very concerned. After nine years of distorted monetary extremism and oppressive fiscal policies, the recovery has been incomplete. The financial system is as leveraged as before 2008. If confidence is lost, it could cause a ruckus in bond and stock markets.
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David Rubenstein16:25
You've given a lot of money to Republicans. Do they listen to you?
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Paul Singer16:30
They are subject to many forces. The right policies don't always make the final cut, but it's important for informed citizens to try to assist.
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David Rubenstein17:05
In the political world, you became well-known in the Republican Party. Who was your favorite candidate in the last election?
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Paul Singer17:15
I stood aside for most of 2015, then supported Marco Rubio. When he dropped out, I stood aside. I voted for Donald Trump as the nominee because I wasn't going to vote for Hillary Clinton. I became optimistic about economic growth and tax reform.
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David Rubenstein18:00
Donald Trump invited you to visit him. Did you know him before?
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Paul Singer18:04
I did not. I invested in his bonds a couple times. I visited the White House once and we chatted about taxes and economic policy.
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David Rubenstein19:51
You have made a lot of money and are involved in philanthropy. What propelled you to get involved in human rights and marriage equality?
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Paul Singer20:03
I apply activism to philanthropy. My younger son came out to me in 1998. I started funding gay rights groups, initially anonymously. We partnered with the governor of New York to make gay marriage legal, which required Republican state senators.
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David Rubenstein22:03
What gives you pleasure outside of investing and philanthropy?
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Paul Singer22:13
I'm a musician. I play piano and keyboards. I've been in reggae, blues, and rock bands. My family has a band. I started playing at age 10.
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David Rubenstein23:08
What would you like as the headline of your life's accomplishments? Are you happy?
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Paul Singer23:16
He tried to make a difference. He protected a lot of people's capital over a long period. I'm pretty good. This is a form of therapy, David. Thank you for the conversation.