Dr. Sanjeev Bhojraj

Sanjeev is a co-founder of Kailash Capital. He is also a portfolio manager and co-founder of L2 Asset Management. Dr. Bhojraj is widely published in the top journals in finance and accounting and specializes in behavioral finance. With 19 Years of total experience, Dr. Bhojraj is also a Chaired Professor in Asset Management and the co-Director of the Parker Center for Investment Research at Cornell University’s Business School. Dr. Bhojraj has a Ph.D, ACA, ACMA and B.Com.

September 25, 2023

The Refinancing Wall Looms Large: When Algebra & Optimism Collide

September 21, 2023|

In our August piece, The Solvency Debate Continues, KCR updated our 2021 missive Junk Stocks Funded by Junk Bonds. We observed that 2023 had seen speculators return with a ferocious appetite for low-quality stocks. Our focus in that piece, and again today, will be on a group of companies that failed the Federal Reserve’s test for financial fragility as defined by interest coverage ratios (“ICRs”).

Equal Weight S&P 500 Indexes: A Panacea for Concentration Risk?

September 7, 2023|

KCR has written a blizzard of material on the increasingly dire investment implications of market capitalization weighted index funds due to the outsized performance of large stocks that now sit at brutally high multiples. This is hardly a new topic for us. In 2014, as “smart beta” strategies became wildly popular, we penned Indexing Dilemmas, which laid out the following facts:

“The Unified Field Theory of Overpriced FOMO Nonsense”: Financial Follies, This Time is Different & Other Rubbish

August 24, 2023|

In a single Tweet on the demerits of a “fund of crypto hedge funds,” the legendary Cliff Asness managed to interweave the madness of meme-stocks and the volatility-suppressing valuation methods of some private asset managers. He dubbed this troika of financial turpitude “the unified field theory of overpriced FOMO nonsense.” How he merged all these financial tropes into one hilarious tweet is beyond our comprehension. But we are glad he did.

The Solvency Debate Continues: A Quick Tour of the Financially Fragile

August 17, 2023|

In August of 2021, we published Junk Stocks Funded by Junk Bonds, which noted that high-yield spreads had hit record lows. Our view was that record low-spreads on record-low nominal yields were a recipe for ruin. Using the Fed’s definition of financial fragility, we highlighted a group of equities that scored poorly on the Fed’s durability test and ranked poorly in our models.

Warren Buffett: Bond Investing, Private Markets & Complacency

August 3, 2023|

"The private credit market has grown to the size where there is no edge other than the fake attraction of not having to mark their assets accurately and showing artificially low volatility. The space is competing for the same deals as the public market. So, the original concept where it was smaller specialty deals and the lenders had to pay up and give special terms is simply gone.

AI, Oil and Gas: Misadventures in Capital Allocation

July 6, 2023|

Our recent pieces, How to Value Tech Companies and External Obsolescence: Tech Investors’ Newest Nightmare?, discussed how AI algorithms, big data, and machine learning could be undermining the moats of tech stocks that now sport multiples last seen during the dot.com mania. We noted that our empirically

A Nod to America’s Oldest Living World War II Vet

June 29, 2023|

So often in the world, darkness takes over. Traumatizing events rock our foundations. Unexpected tragedies shock the world. And when these things happen, it affects people. We often grow a little darker. Cynical. Hardened. But some people—often the best of us—have the exact opposite reaction. They go through the worst and come out of it with a positive attitude and a sense of gratitude.

How to Value Tech Companies Everyone Loves?

June 22, 2023|

“Disturbing research warns AI may be the ‘Great Filter’ that wipes out human civilization” -The Independent “…artificial general intelligence or AGI is AI’s ‘big brass ring’ and will become a trillion-dollar industry by the 2030s…it will also do good in the world.” -Business Insider “What is certain is that creating [artificial general intelligence] AGI is the explicit aim of the leading AI companies, and they are moving towards it far more swiftly than anyone expected...

External Obsolescence: Tech Investors’ Newest Nightmare?

June 8, 2023|

The definition of external obsolescence principally applies to real estate. One real-estate firm explains that “...external obsolescence is something outside of a property, off-site, that negatively affects its value. Definitions of external obsolescence often include the chilling term “incurable,” and examples are trains, traffic, commercial properties, institutional properties, geologic conditions, and industrial installations.”

Mega Cap Stocks: Making Money in Large Cap Growth

June 2, 2023|

“Didn’t we just learn that pouring trillions of dollars into technologies with uncertain profit profiles we didn’t fully understand was a bad idea? Tech investors seem to be most aggressive when they have the least visibility on the IP and valuation provides them with no margin of safety.” -Zac M., KCR Subscriber After the entirely predictable and crushing losses in novelty tech stocks and the collapse of the market’s leaders post the Covid peaks, both groups are ripping in 2023.

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