Hohn is in fact well known for carrying around what he calls a “quality list” of target companies, including each company’s enterprise value, leverage, and margins; what he would pay for it; and the potential IRR over three to five years, among other information. These days, the list is on a spreadsheet on Hohn’s computer.
In a 2015 interview with Institutional Investor, Hohn looked back at the 2008 debacle and the ensuing mediocre years and conceded, “We had strayed from being heavily invested in stocks, with a high barrier to entry and a bulletproof franchise to weaker industries. Then we weren’t fully invested in 2009. The team and the fund got too large.”
“What’s the point of making lots of money if not having the joy of giving of service, meaning, and purpose? I still stick to the original goal: Do well for investors and encourage philanthropy through example.”