Tony Davis is the CEO and Chief Investment Officer of Inherent Group, a value-oriented hedge fund that invests across the capital structure and uses ESG factors to source and underwrite its investments. Prior to founding Inherent Group, Tony was co-founder, President and portfolio manager at Anchorage Capital, a multi-billion dollar hedge fund.
Our conversation covers Tony’s early career experience at Goldman Sachs, key lessons from twenty years at Anchorage Capital, his retirement and philanthropic work in impact investing that led to the formation of Inherent Group. We then turn to his activities at Inherent, including his rationale for taking in outside capital, sourcing longs and shorts, incorporating E, S and G factors in underwriting, quantifying sustainability, constructing the portfolio, and engaging with portfolio companies. We close with a few investment examples, potential opportunities in distressed debt, and tips for allocators researching ESG managers.