We caught up with the brilliant and insightful Stefan Lingmerth a few weeks ago and have shared our conversation below.
Stefan, thanks for joining us, excited to have you contributing your stories and insights. We’d love to hear about the early days of establishing your own firm. What can you share?
I had a long hedge fund career in NYC starting with me landing at a firm after college in Sweden, England and Australia. The day I arrived in Manhattan from Sweden was Sep 10, 2001 and the day before what was the 9/11 attack. My career’s beginning was tumultuous and insane. However, through adversity and hard work, I learned a lot. After a few years, I ended up at Phoenix Investment Adviser, a small but growing hedge fund. Since 2020, I have been in Miami, pursuing various ventures and projects. However, I have finally established my own firm which is a registered investment adviser in the state of Florida called Sunshine Kapital. The hardest part of doing your own business is going from the convenience of having most things taken care for you outside your specific role. Now with my own firm you have to deal with a lot of paperwork and admin work and of course there are no benefits like health insurance etc. However, the decision making will be entirely up to you and you can freely go for it with no one holding you back or making you life miserable. I think when you have expertise in an area and ready to be your own boss the admin work will only be a small nuisance in the bigger picture of doing what you love to do. The pleasure of creating your own world is very rewarding to me. Outside the firm I have also founded the Miami Business Club (@miami_business_club) and the Miami Mile (@themiamimile) plus I’m a partner at Lira, a Lebanese restaurant in Wynwood (@liramiami). Since moving to Miami and working independently, focusing on building small businesses within the local community, I have found it to be incredibly rewarding. I feel more content than ever before. My advice to younger professionals would be that while building something may seem intimidating, the rewards will far exceed the initial challenges, often by multiple folds. The journey itself will be rewarding, and even if the first business doesn’t work out, you will likely have learned valuable lessons that will increase the chances of success in your next venture. My motto since day one of being on my own in Miami has been to have fun. In the worst-case scenario, if I’m having fun with a venture or business (beyond just the financial aspect), I believe I set myself up for success. Your energy and passion will carry you through the work.
Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers.
The expertise I have acquired through more than 20 years of being an investment professional will make my firm succeed and eventually thrive. This I have no doubt about. The confidence needs to be there in yourself to being able to give up a salary and invest in yourself and your business. My business is set up as separate managed accounts.. I help my clients manage their accounts through Interactive Brokers and I use a strategy I have adjusted and worked on for many years. My background in the investment world comes from the distressed corporate debt market where you have to analyze highly leveraged entities that have run into trouble for various reasons. The analysis is highly focused on cash flow and the ability to service its debt. Also the restructuring part of the debt is a big factor to consider and how the company can liquidate its assets. I also managed an equity fund for 10 years betting on the equity of highly leveraged companies. The concept of not only surviving but thriving after overcoming adversity can present a lucrative opportunity when considering investing in a stock that has gone through or is facing potential. Having studied situations like this for many years my strategy has evolved to be more of a value investor including other catalysts coming or a trend reversing. The highly leveraged balance sheet can be a tough obstacle to overcome for a company. The investments we are focusing on at Sunshine Kapital are also focused on other reasons for adversity and seeing a trend reversal either company specific and/or industry wise can be very powerful, specially for a stock which is counted out and now trading very cheap on earnings/cash flow or based on assets on the balance sheet
What do you think helped you build your reputation within your market?
The two main skills you need managing money in my view is the investment expertise and the trust built with your clients. I have managed money for many years and I have had some real success in finding some big rewarding investments. The trust in my professionalism and expertise have been built over many years. This is about continuity and playing the long game. You need to stay consistent and not falter when times get tough. Keep building the trusts with your clients and prospects through tough times. Don’t give up when it really matters. Most great investment times are when the market is down and people are hurting.
Let’s talk about resilience next – do you have a story you can share with us?
I have stayed in the game through many cycles now and to start my own firm now is a blessing with all the knowledge and experience I have. The first day in the U.S. being the day before 9/11 and starting work in such a tough time helped me stay humble and work hard. I also lived through the financial crisis in NYC and saw my best financial year coming out the crisis. However, in the crisis many people give up and leave for other work careers. I saw the opportunity.
Contact Info:
- Website: https://Www.sunshinekapital.com
- Instagram: @miami_business_club
- Linkedin: https://www.linkedin.com/in/stefan-lingmerth-02baa0175?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_app
- Twitter: @lingmerthStefan
- Other: Www.liramiami.com and www.themiamimile.com
