Freddie Lait: Fund Manager Sold His House to Start £1 Billion Fund | The Risk That Paid Off | #21

In this episode, I sit down with Freddie Lait, founder of Latitude Investment Management, who went from studying mathematics at Oxford to working at Goldman Sachs and Rothschild, before taking the ultimate leap - selling his house to start his own fund management business in 2016.

Today, Freddie manages a £1 billion portfolio with a disciplined, long-term investment philosophy that has generated exceptional returns. In this conversation, we dive deep into:

Key Topics Covered:

Why Freddie sold his house to start his fund (and the financial risk involved)
The investment philosophy behind Latitude's success
How to construct a portfolio for long-term wealth creation
Why earnings growth and dividends matter more than valuation multiples
The 6.5% free cash flow yield strategy explained
How 75% of his portfolio is positioned for inflation
Portfolio management vs. stock analysis - which matters more?
Why patience is the rarest commodity in investing
The 10-year rule for judging fund managers
Building a team of exceptional analysts
Managing a concentrated portfolio of 24 global stocks
The difference between investing before and after COVID
His 30-year vision for the fund

About Freddie Lait:
Freddie is the founder and CIO of Latitude Investment Management, launched in 2016. With 16 years of fund management experience, including roles at Goldman Sachs Asset Management and Rothschild, Freddie has built a reputation for disciplined, long-term value creation. His fund focuses on global equities with strong earnings growth, solid free cash flow, and inflation-resistant characteristics.

00:00 - Introduction to Freddie Lait
02:00 - When Did Fund Management Become Your Career?
04:51 - What Is Financial Modeling?
06:22 - The Scary Decision to Start Your Own Fund
10:01 - Investment Philosophy Behind Latitude Investment Management
13:45 - Why Patience Is a Rare Commodity in Investing
18:30 - Finding High-Quality Companies with Strong Returns
23:15 - The Importance of Free Cash Flow in Stock Selection
28:40 - Portfolio Construction: Concentration vs. Diversification
33:20 - Managing Risk in a 24-Stock Portfolio
38:50 - Sector Preferences and What to Avoid
42:30 - Understanding Free Cash Flow Yield (6.5% Strategy)
47:15 - Inflation Protection: 75% of Portfolio Positively Linked
52:40 - Technology Adoption and Portfolio Transformation
56:20 - Google and the Magnificent Seven Discussion
1:01:30 - The 80/20 Rule in Portfolio Management
1:04:45 - Building and Leading an Investment Team
1:09:20 - Personal Weaknesses: Being Too Logical
1:12:50 - The 10,000 Hour Rule and 16 Years of Experience
1:16:40 - What Time Period Should Fund Managers Be Judged Over?
1:21:30 - Current Fund Size: £1 Billion and Growing
1:24:15 - Managing Cash Inflows Operationally
1:26:45 - Final Thoughts and Closing Remarks

Subscribe for more conversations with successful investors, entrepreneurs, and product leaders!

#investing #fundmanagement #portfoliomanagement #stocks #finance #stockmarket #wealth #wealthbuilding