Common Sense Due Diligence with David Young
David Young is the Founder and Chief Executive Officer of Anfield Capital Management, LLC. With over 30 years of investment experience, David has worked with many of the largest and most sophisticated institutional and private investors in investment strategy, portfolio management, and asset allocation.
At the end of 2008, he retired as Executive Vice President with Pacific Investment Management Company to rejoin the U.C. Irvine Merage School of Business as Adjunct Professor of Finance and created Anfield Capital Management, LLC. From 1999 to 2006, David was head of PIMCO’s account management group in London where he built a team of 25 investment professionals managing over 200 client accounts and approximately $50 billion in assets across the UK, Europe, the Middle East, and Africa.
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Brett:
I’m excited about our repeat guest. He is in Southern California. He’s the former VP at a really well-known place that you might know about called PIMCO, one of the most respected wealth groups in the world. He spent a number of years there with a guy named Bill Gross and learned a lot and help grow PIMCO to one of the largest and most respected firms in the world. He’s now with Anfield Capital, where he focuses and helps financial advisors, institutions and endowments, and manage their money or help financial advisors be a money manager for them. Please welcome the show with me, David Young. David, how are you, sir?
David:
Doing great, Brett, thank you so much. Appreciate the opportunity to be with you all again. And I guess I’m officially now a repeat participant or contributor. So that’s great. You did give me a material demotion. I started at PIMCO as a VP. But when I took the PIMCO retirement, as we call it, which is a good thing. I was the Executive Vice President, but that’s okay.
Brett:
Okay, I got to get those titles. Thank you for that correction. So, for our listeners, who want to get to know you for the first time, although there are previous episodes, you can go back, and I highly encourage you to go check those out. We talked about overcoming false beliefs at the deferred sales trust. And we go through a number of different things. But for those who are getting ready for the first time, would you give them a little bit more about your story and your current focus?
David:
Sure, happy to do so. Yeah, the long and the short of it is, and actually, before we dive into that, Brett, I am reminded by my compliance team that I should read a brief disclosure, it’s now a good time for that.
Brett:
It’s a great time, go for it.
David:
All right. So apologies here, I will read. We have lawyers and compliance folks that make sure that we do the very best job we can for our clients and are able to work with people at the highest stature like Brett and with that comes you know in the modern world. Anfield Capital Management LLC is a registered investment advisor with the SEC. Registration as an investment advisor does not imply a certain level of skill or training, and no inference to the contrary should be made. This interview is for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any securities. While many of the thoughts expressed in this podcast are stated in a factual manner. The discussion reflects only Anfield Capitals’ beliefs about the financial markets in which you invest portfolio assets at this time and may change at any time. Well, that was a long one I need to take a breath in there. The descriptions I make are in summary form, are incomplete, and do not include all the information necessary to evaluate any prospective investment partner who prospective investors are referred to our form add to a for a more detailed discussion of risk factors which can be(a) found on the SEC’s Investment Adviser Public Disclosure website at: http://adviserinfo.sec.gov, or (b) provided upon request.
Brett:
Thank you for sharing that. David is gonna bring the wisdom right now. So we are talking about common sense due diligence with David Young. We’re gonna dive into that. By the way, Anfield Capital, you can find them at anfieldcapital.com. But David, would you give us a little bit more about your story and your current focus before we dive into the subject today?
David:
Sure, happy to do so. So I’ve been in the business now for GE ways we just get did it all the BIOS in the marketing materials. It’s 35 years going on where the time went, but it’s been a crazy time to be in the markets over that very long period of time. So, I’m starting off on the really like, I would call it the private financial advisory side. That was way back in the 80s. I went to business school, went to what we call the buy-side, which is where you have a pool of assets and you’re managing money on behalf of institutions, or endowments or foundations work for a boutique firm. I think I mentioned got the MBA there, went on to PIMCO, which we discussed briefly earlier, for sort 15 years I met my current colleagues here at Anfield had the opportunity to move overseas and help build pinkos business in Europe, Middle East Africa, came back here sort of in the 2006, seven timeframes. You still with PIMCO saw an opportunity to take a form of early retirement with the Express goal of returning to the finance faculty at the University of California at Irvine Merage School of Business. Currently, I’m on extended hiatus, if you will, the business is all-consuming in a good way. But then also to create a firm that allowed us to work with networks of financial advisors and trustees and other financial intermediaries and advisors like Brett and his group. And yeah, maybe just you know, kind of the goal of the mission was to rediscover our passion for the art and science of managing money. The very big firms are great, they’re wonderful PIMCO wonderful, firm, love them, good friends and all that. But at that point in our career, it felt like we just wanted to go in a somewhat different direction. So that was 10, 12 years ago. And since then, we’ve been working with financial intermediaries, and then in turn their underlying clients trying to bring that institutional quality to a market that maybe didn’t have such easy access to it before. Before and feel capital.
Brett:
Amazing, so much. Yes, so much there, and so much wisdom to share with our audience say, so thank you so much for being on the show. So let’s dive right into common sense due diligence. What would be the first question or step or process for you, David, as you’re looking at something that requires some due diligence, whether it be a stock, whether it be maybe real estate, maybe just a general asset? What would be the first common sense thing to do for you?
David:
For me, and lots of people will have different views on it. It really comes down to understanding the people if it’s a registered stock of IBM, or Apple or whatever, it’s understanding management, I think management matters. You don’t notice them in good times. You might notice them more in bad times. But good management can get companies through tough times. We’ve just seen some tough times herewith with COVID. Certainly. So to me, I tried to look through the wrapper of Is it a stock or a bond or a private placement or a pooled? You know, real estate Limited Partnership? Or is it up to 40, sales trust type of instrument, and look inside and say, Who are the people behind it? What is their experience? What is their credibility? What are their credentials, if they are relevant credentials are always part of the mix? You know, can I trust in this management team? Are they transparent, so for me, people are big, because numbers tell a certain story? Numbers can be manipulated, unfortunately, it happens. So we always want to be on the lookout for that. But to me, it’s about management and our sponsors, depending on the nature of the instrument, get to know them, get to understand them, check them out thoroughly. And I think you’re a big step towards being where you want to be. So that’s job one for us.
Brett:
Excellent. So the people, right, the background, how transparent their numbers, their credentials, getting to really understand their management style, how they’ve done things, what they’re doing. So start with the people. So that’s step one, which would be step number two.
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