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CNBC PRO Talks

Palihapitiya of Social Capital on hedge-fund investing

Chamath Palihapitiya, founder and CEO of Social Capital, shared his views on hedge-fund investing, his investment style and favorite stock ideas in an exclusive CNBC PRO interview with Kate Kelly from the sidelines of the Sohn San Francisco Investment Conference.

On his investing philosophy: "A lot of these financial market investors ... rely way too much on Excel and their models. And the reality is these models are generally incorrect over quarters and really incorrect over years and decades," Palihapitiya said Wednesday.

He added, "But what can stand the test of time is a more logical framework. There is some numbers, but there is also a better qualitative and quantitative assessment of product and technology."

Palihapitiya, previously former senior member of the investment team at Facebook, also discusses:

  • Why he started a hedge fund.
  • His investment thoughts on Amazon and Workday.
  • Why mergers and acquisitions often fail.
  • Other favorite stock ideas.
  • Why Salesforce.com should not buy Twitter.

Wednesday's event is the West Coast version of the prominent conferences which began in New York. The Sohn conferences, which are known for hedge-fund managers making market-moving presentations to their peers, benefit causes including pediatric cancer. The conference is presented in partnership with CNBC.