Matthew Malgari

Matt is a co-founder of Kailash Capital. He is also a portfolio manager, the Managing Member, and co-founder of L2 Asset Management. Matt spent 14 years at Fidelity working as an Assistant Portfolio Manager on the Diversified International Fund, sector analyst, diversified analyst, and trader. In 2010 Matt became the Managing Director of Equity Research for Knight Capital Group. Matt received his MBA from Cornell University and BA from Middlebury College. Matt has 24 years of experience in the industry.

December 8, 2022

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Russell 2500 Growth Index vs Russell 2500 Value Index

February 2, 2022|

Past Performance Does Not Guarantee Future Results…. Particularly the RECENT Past. This paper makes the following three points: 1) The mean reversion in the 2500 benchmarks will continue, with growth falling sharply relative to value, 2) The reason for this is painfully simple in our view and 3) Allocators should move from index funds to active managers in the R2500G sector

A Good Price to Sales Ratio is Tough to Find in Software Stocks

January 28, 2022|

The Chart Below Shows: • the market cap of just software stocks valued at over 10x price to sales is over $6 trillion • that means that software stocks priced at preposterous levels are now worth ~30% of US GDP • KCR thanks Scott McNealy for making investment decisions on stocks valued like this simple

Quantamental Investing: A Brief Primer on KCR’s Toolkits

January 21, 2022|

In our Chart for the Curious about Apple Computer, we document the challenges faced by investors who follow forecasters. For those seeking compelling evidence based on robust quantitative methods, please see our White Paper The Persistence of Profits. That piece builds on work done by a legendary professor of behavioral finance...

AAP Stock Chart: Did You Miss a Profitable Secular Grower?

January 14, 2022|

• The chart shows the performance of aftermarket automotive products supply and distribution firm Advanced Auto Parts, over the last 3 years • Since 2018 the stock has risen over 50% • We have been proponents of investing in companies that make what you need, not what you want, particularly in times like today, as explained in our...

Stocks Most like Enron Today, Free Enron Hat & Summary of Disaster

January 7, 2022|

Remembering the Risks of “The Smartest Guys in the Room”. We recently put out a two-part summary of Bethany McLean and Peter Elkind’s brilliant book The Smartest Guys in the Room. In an earlier piece, we quoted legendary financial historian John Kenneth Galbraith, who quipped that investors’ memories last “...at a maximum, no more than 20 years.” The KCR team agrees.

Enron Scandal Explained by Peter Elkind and Bethany McLeans’ The Smartest Guys in the Room

January 5, 2022|

Summary of Enron Smartest Guys in the Room: Bethany McLean and Peter Elkind wrote the national bestseller “The Smartest Guys in the Room.” The book catalogues the rise of Enron, the financial crisis that would eventually consume it and exposes the subsequent accounting scandal. We do not write this missive to celebrate the devastating losses created by Enron Corporation...

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