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Turnaround Letter
Out-of-Favor Stocks with Real Value

November 4, 2022

This note includes the Catalyst Report, a summary of the November edition of the Cabot Turnaround Letter, which was published on Wednesday and earnings updates on 12 recommended companies.

This week’s update includes commentary on earnings from Conduent (CNDT), ESAB (ESAB), Gannett (GCI), Goodyear Tire & Rubber (GT), Holcim (HCMLY), Ironwood Pharmaceuticals (IRWD), Kaman (KAMN), Molson Coors (TAP), Organon (OGN), Volkswagen (VWAGY), Warner Bros Discovery (WBD) and Western Union (WU).

Seatmaker Adient (ADNT) reported this morning with encouraging results – we’ll include more detailed commentary next week.

Next week, TreeHouse Foods (THS), Viatris (VTRS), Elanco Animal Health (ELAN), ZimVie (ZIMV), Brookfield Re (BAMR) and Toshiba (TOSYY) report earnings.

Earnings Updates

Conduent (CNDT) – Conduent was spun off from Xerox in 2017. After a promising start, the company’s revenues fell sharply due to management problems, leading to a collapse in its share price. In late 2019, the company replaced the CEO, who began a major overhaul that is starting to show progress. Activist investor Carl Icahn owns 18% of Conduent’s shares, while Darwin Deason (who sold his business to Xerox, which later was spun off as Conduent) holds a 3.3% stake.

The company reported another weak quarter but still beat more pessimistic estimates. Conduent is grinding forward at a snail’s pace with its new business contracts while its total contracts (which include renewals) are directionless. The balance sheet showed incremental improvements and free cash flow jumped higher although much was driven by better working capital. We are wondering if there is much of a turnaround ahead for Conduent, or if it will be a chronically marginal company.

Revenues fell 6% but were in-line with estimates. Adjusted earnings of $0.09/share were above the $0.08/share estimate. Adjusted EBITDA of $105 million fell 12% but was about 6% above estimates.

ESAB Corporation (ESAB) – This company produces specialty welding, cutting and flow control equipment. In April 2022, ESAB was spun off from highly regarded Colfax, which retains a 10% stake. Investors worry about the company’s cyclical revenues in a slowing global economy as well as its asbestos liabilities. But, the company has a strong leadership team with a credible plan that is likely to succeed, follows the impressive Colfax “business excellence” philosophy, and has steady revenue growth with strong profits and free cash flow. Its balance sheet carries a readily manageable debt balance. While the asbestos liabilities are a risk, most of the claims have been dismissed with no payment, and insurance and other mitigants appear to cap the company’s maximum burn.

ESAB reported a decent quarter that was in-line to ahead of estimates. Its profit margin expanded and the company provided some encouragement that it continues to incrementally move forward. It incrementally raised full-year core sales growth, tightened its EBITDA guidance and raised its adjusted earnings per share guidance by 5%. All-in, the ESAB story remains on track.

Revenues rose 2% and were in-line with estimates. Adjusted earnings of $0.88/share fell 13% from a year ago and were about 10% above the consensus estimate. Adjusted EBITDA of $95.5 million rose 5% and was about 1% above estimates.

Debt remains elevated but should be whittled down to 3x EBITDA by year end, even after the somewhat expensive (14.1x trailing EBITDA) purchase of Ohio Medical for $127 million.

Gannett (GCI) – Gannett, publisher of the USA Today and many local newspapers, is racing to replace its declining print circulation and ad revenues with digital revenues. It is also aggressively cutting costs to maintain its profits and help cut its expensive and elevated debt. The biggest challenge for Gannett is to overcome investors’ perception that the company is not viable.

Gannett reported a weak quarter but showed some mildly encouraging indicators. Revenues fell 10% from a year ago and were 3% below estimates. Adjusted EBITDA of $52 million fell 50% from a year ago and was 17% below estimates. Adjusted earnings of $48.4 million rose 82% from a year ago, although this excluded $33 million in reorganization costs. The improved adjusted results plus guidance being reiterated across the board, despite the sloppy advertising environment, helped drive the shares higher.

Another source of share price strength was that there was likely heavy re-buying of shares by short-sellers. Gannett is still on a downward trajectory as consumers pull back on expensive paper subscriptions (secular) and advertisers pull back on ad spending (cyclical). The fact that the company is able to generate positive free cash flow in the quarter (helped immensely by better working capital management) is a confidence-booster and buys the company time until more cost-cutting kicks in (more coming in the fourth quarter and 2023) and the ad cycle recovers. Gannett said it had another $90 million of asset sales in its divestiture pipeline.

Digital-only subscriptions rose 29% from a year ago, an encouraging indicator of the franchise’s value. Also, Digital Marketing Solutions revenues rose 3% from a year ago, with user and profit metrics also improving. Any signs that this segment continues to succeed will help support investor confidence in the management’s strategy.

Gannett generated $19 million in cash flow in the quarter and retired $54 million in debt in the quarter and shortly after quarter end.

Goodyear Tire & Rubber Company (GT) – An investment in Goodyear is an opportunistic purchase of an average company whose shares have fallen sharply out of favor for what look like short-term reasons. Investors aggressively sold the shares following the company’s disappointing outlook provided during its fourth-quarter earnings call. However, demand and pricing will likely remain robust, more than enough to offset rising input costs. And the benefits from Goodyear’s acquisition of Cooper Tire provide additional value. The company’s balance sheet is sturdy.

Goodyear reported a disappointing quarter as operating cost inflation and slippage in volume dragged down results. Elevated inventory is consuming cash, leading to incrementally higher debt. Goodyear is seeing daylight in its fight for higher pricing vs. tire cost inflation, but the battle for higher total profits is still undecided. The company appears to be under-earning compared to a more balanced cost environment and the shares are overly discounting a dark future yet remain high-risk.

Revenues rose 8% and were in-line with estimates. Adjusted earnings of $0.40/share fell 44% from a year ago and were 28% below the consensus estimate.

Goodyear’s recovery stalled in the quarter, as segment profits fell 15% from a year ago, even as the company’s previous commentary and trend suggested improvements were in store. Revenues rose 15% in local currencies, comprised of 16% higher pricing and 3% lower unit volume. Higher prices more than offset higher raw materials costs (very encouraging) but the lower volumes, higher wage, transportation, energy and other costs drove segment profits lower. Much of Goodyear’s weak results can be attributed to Europe with its inflation and a weakened economy.

In the fourth quarter, the company expects pricing will continue to lead inflation in tire costs but we believe that non-tire costs will continue to rise. Goodyear will continue to realize cost savings from the Cooper acquisition through next year.

Goodyear is consuming cash through increases in working capital, which is raising its debt level. We anticipate that this will flatten out or reverse over the next year.

Holcim (HCMLY) – This Swiss company is the world’s largest producer of cement and related products. After its troubled 2015 merger and a payments scandal, Holcim hired Jan Janisch, a highly capable leader whose turnaround efforts are showing solid results, particularly by expanding the company’s profit margins and cash flow. A possible overhang on the shares is the carbon intensity of cement production, but the company’s efforts in reducing its carbon footprint are impressive. (CHF is Swiss francs, CHF1.00 = US$1.00).

Holcim reported a reasonably decent quarter and announced a new share buyback of up to CHF 2 billion. We have not been fans of Holcim’s diversifying acquisition strategy, we have to grudgingly admit that it is going quite well and could perhaps result in a re-valuing of the shares when the recession worries fade. The company is far along with its expansion into lower-margin but faster growth businesses and shift to developed country markets. It also generates strong free cash flow, maintains an underleveraged balance sheet, and has shares that trade meaningfully below their underlying value. A remaining unknown is how much in additional fines and penalties the company will have to pay relating to the Syria corruption issue. The company’s guilty plea could open it up to larger fines than the $780 million settlement with the U.S. government. Nevertheless, we are staying with our Buy rating.

Revenues rose 16% like-for-like (equivalent to organic rates which include adjustments for acquisitions and currency changes) and was about 5% above the consensus estimate. Recurring operating profits rose 8%. This resulted in a lower operating margin, at 19.3% from 21.1% a year ago. Margins in the cement/agg/concrete businesses were 15.5%, still higher than the 13.2% margin in the new Solutions & Products (S&P) segment, although the S&P margins nearly doubled from a year ago. Holcim is reaching its carbon sustainability goals, which will help drive sales into the growing number of carbon-sensitive construction mandates.

Holcim lifted its 2022 outlook to sales increasing by at least 12% (was 10%) and recurring earnings increasing by at least mid-single digits (was for only positive growth). Free cash flow excluding U.S. Justice Department settlements relating to the Syria corruption case were guided to at least CHF 3 billion. The buyback is for about 6.5% of total shares – encouraging but we would like to see a much higher repurchase given the low valuation, the company’s solid profits and its underleveraged balance sheet.

Ironwood Pharmaceuticals (IRWD) – After years of weak leadership, Ironwood has one remaining product, Linzess, so investors view the company as a failed business. However, Linzess is a steady revenue producer with growing volumes that offset its slow per-unit price decline. As cash accumulates on the balance sheet and now exceeds its debt, Ironwood is repurchasing its shares. Respected activist investor Alex Denner, who now holds a board seat, is exerting his influence, including ousting the CEO and slashing spending. Ironwood’s shares trade at a highly discounted valuation.

Ironwood reported a reasonable quarter. Revenues rose 5% but were 2% below estimates. Adjusted earnings of $0.28/share fell 15% from a year ago but was 1 cent above estimates. Adjusted EBITDA rose 5% and was about 1% above estimates.

Ironwood continues to grind forward, as the Linzess prescription count (volume) rose 10%, but price erosion pulled down sales growth to 3%. The company is advancing its additional uses for the underlying linaclotide compound but this is lifting expenses incrementally. The balance sheet has $574 million in cash against $396 million in convertible debt. We would like to see more share buybacks with this excess cash.

Kaman Corporation (KAMN) – Based in Connecticut, Kaman is a high-quality defense and aerospace company. A reconfigured board along with a new CEO and several other new senior executives are prioritizing Kaman’s high-value precision engineering operations, and are emphasizing higher margins and shareholder returns while exiting/de-emphasizing the company’s lower value businesses. The company is profitable and its sturdy balance sheet provides a solid foundation.

The company reported better results than a year ago that were nevertheless well below consensus estimates. Kaman trimmed its full-year sales guidance but cut its adjusted EBITDA guidance by 23% and its adjusted earnings-per-share guidance by 45%, leading to a sharp sell-off in the shares. We see the value of the Engineered Products group but wonder if the other two segments realistically have better futures. We hope to learn more on the conference call.

Revenues fell 4% and were 10% below estimates. Adjusted earnings of $0.32/share rose a cent from a year ago but were half the consensus estimate. Adjusted EBITDA rose 25% but was 30% below estimates.

Engineered Products profits were flat compared to a year ago but margins slipped. Precision Products revenues and profits tumbled on weaker fuze results, while Structures results slid on supplier problems. The reduced guidance is driven by an ongoing weak outlook for fuzes.

Molson Coors Beverage Company (TAP) – Molson Coors is struggling with weak growth, yet is working under a new CEO to more aggressively develop specialty/higher end beverages and reduce its reliance on mainstream and value offerings. Also, the company is increasingly focusing on its cost structure. Molson Coors continues to trade at a discount to its peers and its fundamental prospects.

Coors reported a reasonable quarter but one that was below the consensus estimate. Forward guidance was generally maintained although full-year underlying profits will likely increase around 7% or so compared to the prior guidance of perhaps 9%, due to weaker demand in Central and Eastern Europe (impact of Ukraine war?) and higher cost inflation. The earnings “miss” plus the guidance trim drove the decline in the shares.

Revenues rose 4% and were about 2% above estimates. Coors generates considerable sales in Europe, so the strong dollar weighed on revenues, Ex-currency, revenues rose 8%. All of the revenue increase came from stronger pricing across both the Americas and the rest of the world, as volumes slipped fractionally.

Underlying net income of $1.32/share fell 25% from a year ago and was about 2% below estimates. Underlying EBITDA fell 8% and was 6% below estimates.

The Americas segment (about 80% of sales and includes Canada, the U.S. and Central/South America), performed reasonably well. Sales grew 7% on favorable pricing and mix. Volumes slipped marginally due an ongoing strike in Canada but helped by decent growth in Mexico. Underlying pre-tax profits rose 11%. Coors has been able to implement price increases that more than offset higher materials, transportation and energy costs.

The rest of the world (technically, called EMEA & APAC) is struggling. Sales rose 10% in constant currencies but fell 6% as reported. Volumes slipped about 3%. The average price rose over 14% (about twice that of the Americas’ increase) helped by both higher pricing and a pricier mix, but costs rose faster, cutting profits nearly in half.

Overall, Coors remains a stable, dull-ish company that generates considerable free cash flow, has a strong-enough balance sheet, pays a respectable dividend yield with shares that are undervalued.

Organon & Co (OGN)Spun off from Merck in mid-2021, Organon specializes in patented women’s healthcare products and biosimilars. It also has a portfolio of mostly off-patent treatments. Investors have ignored the company, but we believe that Organon will produce at least stable and large free cash flows with a reasonable potential for growth. At our initial recommendation, the stock traded at a highly attractive 4x earnings.

The company reported a weak third quarter with flattish revenues but a narrower profit margin. While the results were ahead of estimates, this essentially reflects a company that is seeing a slower erosion relative to expectations, but a company that is eroding nonetheless. Organon raised its EBITDA margin guidance for the full year and its other guidance remained largely unchanged.

Revenues fell 4% (+3% ex-currency changes) and were about 1% above estimates. Adjusted earnings of $1.32/share fell 16% from a year ago but was about 20% above estimates. Adjusted EBITDA of $546 million fell 11% from a year ago and was about 17% above estimates. The company excludes stock-based compensation from its adjusted earnings numbers. We frown upon this, especially in an era when options are likely to be underwater and may need to be reissued at lower strike prices.

Volumes rose nearly 5% but local pricing eroded 2%, producing the +1% revenue growth ex-currency. Gross profit margins are improving to a respectable 64.2% (not adjusted) but the EBITDA margin continues to slide as Organon is spend more on selling and product promotions while also investing more heavily in research and development. Another disappointment not reflected in adjusted EBITDA is the $70 million of costs associated with the spin-off. This event occurred over a year ago and Organon should be completely finished with this transition.

Organon’s balance sheet carries $600 million less debt than on its spin-off date but also less cash, such that net debt is essentially unchanged from the spin-off date. Working capital has absorbed close to $600 million of cash year-to-date, nearly all of which is spin-off related. Another $263 million in cash has been lost to one-time spin-off payments. Again, the spin-off was over a year ago and these flows and costs should have been sorted out by the last year-end. We are wondering what is going on with Organon’s financial function that they can’t manage to convert more profits into cash.

Volkswagen AG (VWAGY) – Volkswagen is one of the world’s largest car makers, with a portfolio of brands including Volkswagen, Audi, Porsche and Lamborghini, as well as commercial trucks and a major financial services unit. China is Volkswagen’s largest market, (38% of vehicle unit sales), followed by Western Europe (32%) and North America (10%). Investors worry about the sizeable China exposure, large but unsettled bet on electric vehicles and complicated governance structure, as well as the likely effects of a recession. We acknowledge the numerous headwinds, yet the market is over-discounting these while over-looking the company’s strengths including its sizeable profits and free cash flow and sturdy balance sheet that give it plenty of time to execute its plans. Several important catalysts look primed to unlock value within the company, including the Porsche IPO and new leadership.

Volkswagen reported a strong quarter. Revenues rose 24% while adjusted operating profits increased 53% to €4.3 billion. Revenues were fractionally above estimates while profits were significantly above estimates. Free cash flow was sturdy at €3.3 billion. VW has €44 billion in cash on its Automotive segment balance sheet against only €11 billion in Automotive debt, resulting in a remarkably strong financial position. The company will pay a €19/share special dividend ($1.90/VWAGY ADR) in early January. The new leadership appears to be determined to improve execution and accountability within VW.

Thankfully, Ford shut down its Argo AI group which spent heavily to develop self-driving cars and related technologies. Volkswagen was a primary partner, so this closure saves it from future spending that would almost certainly have been a complete waste. VW took a €1.9 billion write-down of its Argo AI investment.

On a YTD basis, Passenger Car operating margins reached 8.5%, up from 7.4% a year ago and are o -track to at least reach the company’s 7.0-8.5% target for the full year.

Warner Bros Discovery (WBD): Warner Brothers Discovery is a global media company, with properties including the Warner Brothers film studio, HBO, the Discovery Channel, The Learning Channel, CNN, HGTV, DC Comics, TBS and Harry Potter. It generates revenues from distribution fees (49% of total revenues), advertising (28%), content licensing (21%) and various other sources (1%). Investors have taken a dour view of Discovery’s recent acquisition of AT&T’s WarnerMedia operations, given the integration risks, new debt burden and lateness to the streaming game, as well as secular erosion in its network segment and headwinds from a recessionary advertising climate. Acknowledging these issues, we see an investment opportunity rooted in the turnaround of the WarnerMedia assets within a stable and profitable Discovery business, led by an aggressive, determined and highly focused CEO. Warner is healthy and profitable and produces a large and growing stream of cash flow, buying it time for a turnaround while capably servicing its elevated debt.

Warner Bros Discovery reported a reasonable quarter. It’s early days for the TimeWarner turnaround, so there are a lot of parts moving in different directions. The management is making progress and reiterated its targets and guidance even as the advertising market weakens. No change to our recommendation or price target.

Revenues of $9.8 billion fell 11% on a pro forma basis, or 8% on a pro forma basis ex-currency, and fell 5% short of the consensus estimate. Adjusted EBITDA of $2.4 billion fell 8% ex-currency from pro forma year-ago results but was 8% above estimates.

Weak advertising revenues weighed on results, but the effects from one-offs like its carriage of the Tokyo Olympics in Europe last year artificially elevated those results, making this year’s comparison less favorable. Losses in the direct-to-consumer business (HBO, HBO Max and streaming) doubled to $(634) million.

Offsetting much of the revenue weakness were large cost cuts. Expenses fell 17% in the Studios segment and 18% in the Networks segment. Costs in the DTC segment rose only 5% as higher programming costs were nearly offset by lower marketing spending. Management raised its total synergy target to $3.5 billion+ by 2024.

The launch of the combined HBO Max/Discovery+ streaming service was moved forward to spring of 2023 rather than the earlier-planned summer of 2023. Subscriber metrics improved as the number of global subscribers increased 3% from the second quarter and 19% from a year ago. Both of these items are encouraging.

Free cash flow was negative but the company reiterated its guidance of $3 billion this year. Discovery chipped $6 billion from its debt burden and maintained its target leverage of 2.5x-3.0x by the end of 2024 (compared to 5.1x today).

The CFO said he is working toward his goal of $12 billion in EBITDA in 2023. This is a stretch given the weak ad market but even coming close to this number would be an impressive positive for the story.

The Western Union Company (WU) – This widely-recognized money transfer company is facing secular headwinds from the transition to cheaper digital forms of money movement. Prior efforts to diversify away from the core retail business using the company’s sizeable cash flows were unsuccessful, but a new CEO with impressive fintech experience brings the real possibility of a meaningful improvement in both execution and strategy as it makes its transition to the digital world. Investors have aggressively sold WU shares, ignoring the company’s relatively stable revenues, sizeable free cash flow and valuable intangible assets as well as its generous dividend yield.

The company reported a weak quarter that nevertheless was in-line with estimates. Western Union maintained its full year guidance. Its strategic turnaround has started – we want to see a few quarters of results before fully assessing its prospects.

Revenues fell $15 billion, but only 6% on a currency-adjusted basis and were in-line with estimates. Adjusted earnings of $0.42/share fell 33% from a year ago but were in-line with estimates. The adjusted EBITDA margin slipped to 25.4% from 28.8% a year ago. Management said the company remains on-track to meet its full year guidance for a mid-single digit revenue decline and adjusted per share earnings for an 18% decline.

Third-quarter results were dragged down by fewer money transfers, particularly in Russia and Belarus. These two countries are being shut out, so they will remain a drag until the effects are lapped. Latin America results stayed relatively strong. The balance sheet remains solid, as does free cash flow (albeit weaker than a year ago). The divestiture of the business services segment is being shifted to a three-part close rather than a two-part close. We see this change to an already-signed deal as merely a formality for tax and other purposes.

Friday, November 4, 2022 Subscribers-Only Podcast:

Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.

Today’s podcast is about 15½ minutes and covers:

  • Earnings updates
  • Comments on other recommended companies:
    • Walgreens Boots Alliance (WBA) – tentative agreement in broad opioid settlement.

Please know that I personally own shares of all Cabot Turnaround Letter recommended stocks, including the stocks mentioned in this note.

Market CapRecommendationSymbol



Price at





Rating and Price Target
Small capGannett CompanyGCIAug 20179.22 1.75 - Buy (9)
Small capDuluth HoldingsDLTHFeb 20208.68 8.61 - Buy (20)
Small capDril-QuipDRQMay 202128.28 24.61 - Buy (44)
Small capZimVieZIMVApr 202223.00 8.33 - Buy (32)
Mid capMattelMATMay 201528.43 17.70 - Buy (38)
Mid capConduentCNDTFeb 201714.96 3.81 - Buy (9)
Mid capAdient plcADNTOct 201839.77 33.24 - Buy (55)
Mid capXerox HoldingsXRXDec 202021.91 13.947.2%Buy (33)
Mid capIronwood PharmaceuticalsIRWDJan 202112.02 11.36 - Buy (19)
Mid capViatrisVTRSFeb 202117.43 9.675.0%Buy (26)
Mid capOrganon & Co.OGNJul 202130.19 25.884.3%Buy (46)
Mid capTreeHouse FoodsTHSOct 202139.43 49.16 - Buy (60)
Mid capKaman CorporationKAMNNov 202137.41 20.094.0%Buy (57)
Mid capThe Western Union Co.WUDec 202116.40 12.437.6%Buy (25)
Mid capBrookfield ReBAMRJan 202261.32 38.861.4%Buy (93)
Mid capPolarisPIIFeb 2022105.78 99.92 - Buy (160)
Mid capGoodyear Tire & RubberGTMar 202216.01 9.90 - Buy (24.50)
Mid capM/I HomesMHOMay 202244.28 38.37 - Buy (67)
Mid capJanus Henderson GroupJHGJun 202227.17 21.467.3%Buy (67)
Mid capESAB CorpESABJul 202245.64 37.88 - Buy (68)
Large capGeneral ElectricGEJul 2007304.96 78.380.4%Buy (160)
Large capShell plcSHELJan 201569.95 55.733.6%Buy (60)
Large capNokia CorporationNOKMar 20158.02 4.222.2%Buy (12)
Large capMacy’sMJul 201633.61 19.753.2%Buy (20)
Large capToshiba CorporationTOSYYNov 201714.49 17.173.7%Buy (28)
Large capHolcim Ltd.HCMLYApr 201810.92 9.024.9%Buy (16)
Large capNewell BrandsNWLJun 201824.78 12.717.2%Buy (39)
Large capVodafone Group plcVODDec 201821.24 11.548.8%Buy (32)
Large capKraft HeinzKHCJun 201928.68 37.994.2%Buy (45)
Large capMolson CoorsTAPJul 201954.96 49.483.1%Buy (69)
Large capBerkshire HathawayBRK.BApr 2020183.18 283.85 - HOLD
Large capWells Fargo & CompanyWFCJun 202027.22 45.542.6%Buy (64)
Large capWestern Digital CorporationWDCOct 202038.47 33.71 - Buy (78)
Large capElanco Animal HealthELANApr 202127.85 12.86 - Buy (44)
Large capWalgreens Boots AllianceWBAAug 202146.53 35.745.3%Buy (70)
Large capVolkswagen AGVWAGYAug 202219.76 16.354.6%Buy (70)
Large capWarner Bros DiscoveryWBDSep 202213.13 11.97 - Buy (20)
Large capDowDOWOct 202243.90 46.496.0%Buy (60)
Large capCapital One FinancialCOFNov 202296.25 98.822.4%Buy (150)

Disclosure: The chief analyst of the Cabot Turnaround Letter personally holds shares of every Rated recommendation. The chief analyst may purchase securities discussed in the “Purchase Recommendation” section or sell securities discussed in the “Sell Recommendation” section but not before the fourth day after the recommendation has been emailed to subscribers. However, the chief analyst may purchase or sell securities mentioned in other parts of the Cabot Turnaround Letter at any time.Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at or to our friendly customer support team at Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.

Bruce Kaser has more than 25 years of value investing experience in managing institutional portfolios, mutual funds and private client accounts. He has led two successful investment platform turnarounds, co-founded an investment management firm, and was principal of a $3 billion (AUM) employee-owned investment management company.