The Discipline of Betting Against the Crowd — Bill McMorrow, CEO of Kennedy Wilson
It is a long-form interview with the head of a large real estate manager on how contrarian positions were identified across four decades of cycles and how institutional relationships were built. Useful context for allocators thinking about real assets managers and how real estate firms describe their own history and strategy.
Summary
By the real estate & infrastructure deskBill McMorrow, CEO of Kennedy Wilson, joins Brandon Sedloff on The Distribution to trace the firm's path from a small real estate auction business in 1988 to a global investment firm managing nearly $38 billion in assets. He describes how relationships with early banking mentors, George Graziadio and Fairfax Financial's Prem Watsa shaped that trajectory, and how the firm found opportunities in Japan in the 1990s, in Ireland and the UK after the Great Recession, and in US multifamily housing when regional banks pulled back in 2023. McMorrow also explains why the firm now concentrates exclusively on housing across the US, Ireland and the UK after having owned every asset type.
- Kennedy Wilson began as a $57,000 real estate auction company in 1988 and now manages nearly $38 billion in assets.
- McMorrow describes a half-hour conversation at a Berkshire Hathaway meeting that led to $20 billion in joint ventures over sixteen years with Prem Watsa and Fairfax Financial.
- The firm identified opportunities in Japan in the 1990s and in Ireland and the UK following the Great Recession, including a Bank of Ireland deal.
- After owning every asset type, Kennedy Wilson now focuses exclusively on housing in the US, Ireland and the UK, including multifamily acquisitions made as regional banks retreated in 2023.
Chapters
From the publisher’s description| Time | Chapter | Length |
|---|---|---|
| Intro | 2 min | |
| Bill McMorrow's early life and formative years | 3 min | |
| Banking career and move to Philadelphia | 3 min | |
| Acquiring Kennedy Wilson in 1988 | 2 min | |
| Expanding to Japan in the 1990s | 1 min | |
| The Great Recession and meeting Prem Watsa | 3 min | |
| Kennedy Wilson's culture and growth to $38 billion | 2 min | |
| Growing up in a family of nine | 6 min | |
| Building relationships with foreign investors | 2 min | |
| The Ireland opportunity and Bank of Ireland deal | 7 min | |
| Kennedy Wilson's business model today | 1 min | |
| Focus on housing and recent acquisitions | 8 min | |
| Staying focused and tuning out the noise | 5 min | |
| The importance of starting the journey | 1 min | |
| Taking chances and betting against the crowd | 2 min | |
| Looking ahead: opportunities and strategy | 7 min | |
| Closing thoughts | 1 min |
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