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Investment Strategy and Fund Management

Jul 22, 2025

Summary

  • The meeting focused on the investment rationale and fund management approach related to Opendoor, with comparisons drawn to Carvana.
  • Key discussion points included reasons for optimism about Opendoor, lessons learned from previous investments, and the current fund structure following major investor changes.
  • No formal business decisions were made, but the speaker outlined their strategy for fund allocation and explained their long-term investment philosophy.
  • Attendees included Carol and Tim, with the main speaker providing insights from their experience managing MJ Capital.

Action Items

  • (none identified; no explicit tasks or follow-up assignments were discussed.)

Discussion: Investment Thesis in Opendoor

  • The speaker described Opendoor as a fundamentally stronger business than 2021-era "meme stocks" (e.g., AMC, GameStop, BlackBerry).
  • Opendoor was selected due to its real platform and market positioning, despite current negative sentiment and steep stock declines.
  • The speaker drew parallels to Carvana, highlighting how overly pessimistic market sentiment previously presented lucrative investment opportunities.
  • The belief was expressed that Opendoor should currently be valued much higher ($40–$82/share), similar to Carvana's turnaround.
  • Emphasis was placed on Opendoor's potential to disrupt a large, fragmented market, akin to Carvana's impact on used car sales.

Discussion: Investment Approach and Fund Structure

  • The speaker intends to approach Opendoor as a long-term “buy and hold” investment, avoiding emotional, short-term trading decisions.
  • Historical reflection on previous successful investments (Alibaba, Carvana) illustrated the importance of holding through volatility.
  • The fund, MJ Capital, previously relied on one major investor (a billionaire), who has since withdrawn, leading to a restructuring of the fund's client base and strategy.
  • The speaker currently manages a smaller fund, deploying a few million in capital across five key positions (including Opendoor, Cipher Mining, BTG Technologies, and Ethereum).
  • There is a renewed focus on leveraging AI models to identify potential “100 bagger” investments.

Decisions

  • (No formal decisions recorded in this transcript.)

Open Questions / Follow-Ups

  • No amounts or percentages were given regarding the precise allocation to Opendoor or the other positions, leaving fund composition details incomplete.
  • No specific next steps or follow-up actions were identified during the discussion.