Julian Salisbury, Global Co-Head of Asset Management at Goldman Sachs

Pandemic Response Strategy (Jan–Apr 2020)

• Initial market data from China (early 2020) was deemed a "head fake," as economic indicators briefly improved by late February before full global consequences emerged in March.
• Primary strategic focus for the first two months of the crisis was strictly "liquidity, liquidity, and liquidity," prioritizing survival over business model optimization.
• Secondary focus shifted to business model agility to extend the duration of available liquidity.
• Defense became the "first, second, and third order of priority" for the portfolio through March and April.

Investment Opportunity Hierarchy & Fund Deployment

• Opportunity sequence followed a specific order: credit initially, followed by growth equity (favoring businesses less reliant on leverage), then private equity and real estate.
• Private equity and real estate markets were identified as "laggards," with interest levels only re-emerging in the most recent month or two.
• Goldman Sachs launched the "Strategic Solutions Fund" with a capital raise of $14 billion, designed specifically to provide liquidity via junior debt, preferred equity, and structured equity.
• The $14 billion capital was raised in six months from a standing start with zero in-person meetings.
• Capital deployment targets include recapitalizing corporates and private equity portfolio companies to repair balance sheets.

Emerging Markets Investment Philosophy

• Success requires balancing strong, localized teams (who understand regional politics and economics) with a global overlay for cross-market valuation comparison.
• The global team must possess the authority to overrule local teams if a local deal is priced at "twice the price" of better opportunities elsewhere.
• Conversely, the global team may instruct local teams to "lean in" when they identify the best global risks in a specific region.

Key Investing Lessons & Methodology

• Julian Salisbury asserts that career learning is derived more from mistakes than successes, as errors trigger rigorous root-cause analysis.
• A specific lesson involved acquiring a company via debt where key supplier payment terms shifted within three days, increasing leverage 1.5 turns higher than anticipated.
• The lesson from this error: do not trust management narratives or consultant reports; verify facts through multiple independent sources rather than relying on adjusted pro-forma financials.
• Success methodology involves "hard work," "grilling" management, and repeatedly "peeling back the onion" to reject the first or second answer.
• Career progression moves from deep specialization in one sector (e.g., cable/telecom) to layering additional industries and regions into a broad "Rolodex of experiences."

Advice for New Investors

• New professionals are advised not to fear asking "dumb questions" or challenging established figures.
• A practical test for a subject matter expert's understanding: if they cannot explain a concept in a way the beginner understands, the expert likely does not understand it well themselves.