Mar 5, 2024,06:30am EST
Gregg Hymowitz, the CEO and founder of EnTrust Global, leads an alternative asset management firm overseeing $18.7 billion in assets. A native of Long Island, Hymowitz, 58, pursued political science at the State University of New York at Binghamton, graduating Phi Beta Kappa in 1987. He continued his education at Harvard Law School and briefly worked in mergers and acquisitions at the prestigious law firm Skadden. In 1992, he joined Goldman Sachs, where he played a key role in expanding the firm’s ultra-high-net-worth management business.
In 1997, Hymowitz, along with Goldman colleagues Michael Horowitz and Mark Fife, ventured out on their own, establishing EnTrust Capital with 125 clients and $750 million in assets. Over the years, Hymowitz acquired full ownership of the firm in 2008 and 2013. In 2016, he merged EnTrust with Legg Mason’s hedge fund, divesting 65% of his stake for $400 million. However, he repurchased the stake in 2020. Notably, Hymowitz sold a 20% share of the business to Brunei’s sovereign wealth fund, which also invests in EnTrust’s fund. His estimated net worth stands at $1.7 billion, reflecting his 80% stake in EnTrust and personal investments in EnTrust funds and other assets.
A significant innovation credited to Hymowitz is event-driven co-investments, where EnTrust collaborates with billionaire activists to finance their initiatives. For instance, in 2016, EnTrust partnered with billionaire Dan Loeb’s Third Point LLC, investing $650 million in Nestlé SA to pressure the food giant to restructure its operations. The firm has also worked alongside Nelson Peltz’s Trian Fund Management and has excelled in fund-of-funds investments in other hedge funds. In recent years, Hymowitz has seized opportunities in the private credit market, particularly in maritime lending.
In an interview with Forbes, Hymowitz discussed his journey into investment and the evolution of EnTrust. He emphasized trust as the cornerstone of their business, highlighting the importance of aligning personal investments with those offered to clients. He outlined the firm’s transition from traditional equity investments to hedge funds and event-driven co-investments, demonstrating a commitment to adaptability and innovation.
Reflecting on lessons learned, Hymowitz shared insights into successful investments, including EnTrust’s involvement in SeaWorld and the challenges encountered with Quibi, a short-form video streaming platform. He underscored the importance of clear vision and alignment between management and shareholders in driving investment success.
Hymowitz acknowledged influential figures in his career, such as Warren Buffett, whose annual letters he admires for their clarity and common sense. He also cited Nelson Peltz as a valuable partner, emphasizing the significance of straightforward investment principles.
Addressing macroeconomic risks, Hymowitz expressed concerns about the rise of indexing and excessive leverage in the financial system, emphasizing the need for vigilance and risk management.
Looking ahead, Hymowitz encouraged aspiring investors to prioritize legal and accounting knowledge, essential for navigating complex investment landscapes. He recommended the book “Blue Ocean Strategy” for its insights into identifying differentiated market opportunities.
Throughout the interview, Hymowitz’s experiences and perspectives underscored his commitment to innovation, trust, and strategic foresight in the ever-evolving world of investment management.