Josh Friedman – Master Class in Credit Investing at Canyon (Capital Allocators, EP.263)

Career Beginnings

Josh Friedman's journey into investing was serendipitous, beginning with an unexpected recruitment by Goldman Sachs. Initially a physics major with aspirations in the tech industry, he was drawn into the world of finance, working in the merger and acquisition department at Goldman Sachs before moving to Drexel Burnham Lambert 1. Friedman's entrepreneurial spirit was influenced by his father's advice to forge his own path, leading him to leave Goldman Sachs for Drexel, where he was exposed to groundbreaking financial innovations like high-yield bonds 2. He describes both firms as talent magnets, with Goldman Sachs being a particularly intellectually stimulating environment, thanks to leaders like John Whitehead and John Weinberg 3.

I was very fortunate that I was in such an intellectually engaging, fun, creative place. And Goldman just had a lot of smart people who were really nice.

--- Josh Friedman

This foundation set the stage for his future endeavors in the investment world.

   

Canyon's Formation

The founding of Canyon Partners was marked by challenges and a steep learning curve. Josh Friedman and his co-founder Mitch Julis ventured into entrepreneurship with limited knowledge of running a business, focusing instead on their strengths in securities analysis 4. Despite initial struggles, they capitalized on market opportunities during the savings and loan crisis, eventually establishing a hedge fund structure that suited their investment style 5. Their persistence paid off as they navigated through financial crises and learned to adapt their strategies, such as avoiding sovereign debt after the Russian crisis 6.

We were nothing if not persistent. We were super persistent. We called all sorts of people. We had no idea the right way to do it.

--- Josh Friedman

This resilience and adaptability were key to Canyon's growth and success.