Episode 18: Sebastian Evans – Concentration
On this episode:
Sebastian Evans is the Managing Director and Chief Investment Officer of NAOS asset management. Sebastian spends most of his time sifting through the smallest companies on the stock market and, when he finds the right opportunity, is willing to take a very big stake and hold the shares for many years.
Sebastian takes us through what he looks for in businesses and management teams, the benefits of running listed investment companies, tricks and traps for small company investing, his favourite podcasts, and we talk about passive investing in small caps. My favourite story is him asking friends and family for some help to buy NAOS, a decision which set him on a path to becoming one of Australia’s most respected small company investors.
Sebastian doesn’t like the spotlight much, so I was thrilled he decided to join me for this chat.Considering he is in his early 30’s, I was impressed with his level of insight, but also his transparency and humility.
I think you’ll enjoy this conversation with Sebastian Evans of NAOS.
- 7:00 – Sebastian first investor presentation
- 8:30 – Lessons from the GFC
- 13:00 – What the heck is a LIC?
- 15:30 – Why did Sebastian start a LIC?
- 17:40 – How does Sebastian invest? (“… we haven’t added one new stock in a year and a half”)
- 22:30 – What does Sebastian look for in management?
- 26:00 – Is NAOS an Activist Investor?
- 27:00 – Why it’s important to “average up”
- 30:00 – 5 tailwinds for ASX small caps
- 32:00 – Are ETFs a good way to invest in small cap shares?
- 35:00 – Do ETFs pose ‘systemic risks’ to the market?
- 36:30 – How does NAOS go about getting an ‘edge’ and beat the market?
- 40:00 – Which podcasts Sebastian listens to and why he started one of his own