D1’s Dan Sundheim on Inspiration From Bezos, Risk Management, Shorting & Career Advice

In a recent interview with David Rubenstein, Dan Sundheim, the founder and Chief Investment Officer of D1 Capital Partners, discussed his hedge fund career, his firm's investment philosophy, and lessons learned from challenging market cycles, most notably the 2021 GameStop short squeeze. Sundheim told Rubenstein that "the GameStop short squeeze of 2021... if you're D1 Capital Partners founder and chief investment officer Dan Sundheim, you would call it the worst two weeks of your career"

A Career Forged in Finance

Dan Sundheim's journey in the investment world began after graduating from Wharton. Born outside Philadelphia, he grew up around stocks, influenced by his father's interest in investing outside of his medical profession, despite his father being a doctor and his mother an occupational therapist. Sundheim shared that he was initially "intimidated" when he went to Wharton, coming from a public school where only a couple of students went to Ivy League schools, but ultimately felt his education was "sufficient". He started his career in investment banking at Bear Stearns for three years, initially moving into private equity within the firm.

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He then transitioned to Viking Global Investors, a famed Tiger Cub firm, where he spent 15 years. Sundheim detailed his progression there: "I started out as an analyst covering banks. And over time, I picked up every other sector and became co-CEO and then CIO". He states that Viking, similar to D1, was primarily focused on fundamental research in equities.

In 2018, Sundheim struck out on his own, founding D1 Capital Partners. The firm's name was inspired by Jeff Bezos's "Day One" philosophy for Amazon, embodying a desire to maintain entrepreneurial energy and avoid becoming slow or bureaucratic. The firm's name was inspired by Jeff Bezos's "Day One" philosophy for Amazon, which Sundheim adopted to embody a desire to maintain entrepreneurial energy and avoid becoming slow or bureaucratic.