[Interview] Caroline Lembck | LemVega Capital CEO
Introduction:
Caroline Lembck, a native of Philadelphia, Pennsylvania, excelled academically from an early age. Indeed, she was expedited through school and began studying at West Chester University at the age of sixteen. After earning her bachelor’s degree at the age of nineteen, Caroline enrolled in the Master’s of Business Administration program at St. Joseph’s University. While pursuing her MBA, she completed two internships: one in medical devices and another in biopharmaceuticals. Caroline Lembck earned her MBA at St. Joseph’s in less than a year. She then opted to continue her study by enrolling at Cabrini University and pursuing a PhD in Business and Organizational Development with an emphasis on female entrepreneurship.
Caroline began her professional career with Genmab, a biotechnology multinational corporation with a market valuation of $25.9 billion, where she worked in the alliance management and business development department. Currently, she consults for a number of biotech and pharmaceutical firms. Caroline Lembck founded and started her own hedge fund, LemVega Capital, in January 2022. The fund is headquartered in Puerto Rico, where she is now residing.
Outside of managing her business, Caroline Lembck enjoys training in the gym, cooking, and spending time with friends and family. She is also a sports car enthusiast, with a particular fondness for Porsche.
How did the idea for LemVega Capital begin?
LemVega Capital was founded to seize the current market opportunity. Whether you have a bullish or bearish viewpoint, it is an irrefutable reality that there are inflated and undervalued enterprises. As a result, we established the fund as a multi-strategy long/short fund.
We research these organizations’ technical and fundamental characteristics and make investment decisions based on how much we believe they will be worth in the future. Additionally, because of Puerto Rico’s government structure, our partners may benefit from the island’s tax benefits, as well as pay less tax on any profits earned through the fund.
What does a typical day look like for you, and what do you do to increase your productivity?
As CEO of LemVega, my typical day is absorbed with market analysis. I follow a precise schedule in the mornings before the market opens, during which I assess numerous aspects affecting the fund’s positions. I monitor companies that have announced earnings, various initial public offerings (IPOs) or earning reports, as well as the market’s general momentum and trends.
Following that, I evaluate our portfolio and either enter, add to, or sell positions in order to improve the fund’s overall performance. Simultaneously, throughout the day, I also verify that we’re communicating properly across the business to ensure that everything functions efficiently. Additionally, I communicate with clients to confirm that their needs are being met. There are several administrative documents to complete, which adds time to the process. Finally, a large portion of my daily efforts are devoted to growing the fund’s existing clientele, and attracting new limited partners.
How do you bring something from "idea" to "reality"?
After careful consideration of a new idea, I analyze its advantages and disadvantages. If I decide to pursue it, I’ll prepare a thorough to-do list and step-by-step plan outlining the steps necessary to implement the concept. If it’s an investment strategy or a business idea, I study it and consider several elements. Then I consult with my staff, solicit their opinion, and we choose the best plan of action for bringing the concept to life.
Is there a certain trend that excites you right now?
A trend that interests me is projecting the markets’ near-to-mid-term forecasts, whether six months or a year from today. I look at which companies have the potential to genuinely improve society, which are popular, and what other knowledgeable investors are considering doing with their assets. Ultimately, the most exciting aspect of starting a fund is delivering flawlessly and witnessing our partners and investors earn fantastic returns.
What is one habit that you would credit with making you a more productive entrepreneur?
I’d argue that mastering tiny habits is critical for productivity. I’m referring to fundamentals such as proper nutrition. This includes not just eating nutritious foods, but also measuring macros and ensuring that you receive the proper balance of fat, protein, and carbs to feel energized.
I abstain from sweets and limit my caffeine intake during the day to prevent feeling drained. I make a point of getting adequate sleep, being hydrated, and moving my body throughout the workday, whether it’s a quick exercise during lunch or a short hike. It is critical to exercise in order to maintain full mental capability throughout the day.
Additionally, I would emphasize the need to take notes of everything. When I get an idea, I make a point of writing it down because, nearly often, I want to move on to the next one as quickly as possible. By maintaining comprehensive records, I can go back when I’m not as busy and ensure that I didn’t miss anything important during the day. This enables me to be highly productive.
If you could give advice to your younger self, what would you say?
You really can accomplish everything that you set your mind to. Being a woman from a Middle Eastern background and not really fitting in with my peers, I think it’s important to have that sense of security and the self-esteem to know that you can accomplish anything that you want in life, and you shouldn’t let anyone or anything stop you.
Is there something you consider an "absolute truth" that people may disagree with you on?
I’ve spent a lot of time studying cryptocurrency. It is a very different beast than other financial products or instruments, owing in part to the fact that it is a novel concept. After investing in cryptocurrency last year, I’ve developed a strong affinity for Dogecoin. It is, in my opinion, the greatest cryptocurrency available. While some may believe it is not the best, preferring Bitcoin or Ethereum, Dogecoin provided me with a significant return last year. I ended up profiting about twenty-thousand dollars as a result of it.
I believe that it will swiftly gain widespread adoption as a result of its functionality—most notably the speed with which transactions may be completed. Businesses that accept Dogecoin as a payment method, already know the transaction speeds are far faster, and it makes a lot more sense for our society to utilize it as the primary cryptocurrency when it becomes widely used.
As an entrepreneur, is there a habit you would credit with helping in your success, that you would share with our readers?
Each day, I set aside around an hour to switch off all my technology, remove all distractions, and simply sit with myself and reflect. Whether it’s about work, academics, or my future ambitions for the company, I believe that taking time to genuinely ponder on what’s essential and how to resolve particular difficulties is one of the finest practices I have.
After that hour, I jot down any thoughts that occur to me. I’d estimate that this technique increases my performance tenfold and enables me to solve difficulties more quickly. I utilize this time to assimilate information and come up with new questions and ideas to explore later.
Is there a particular strategy that has greatly helped you grow your business?
One of the primary techniques we take at LemVega is to expand our existing capital. As the market has been more negative in recent months, we’ve been hedging our long-term holdings through a combination of shorting and option trading. That is the more technical method through which we increase the size of our investment fund.
Another tactic for expansion has been to recruit new partners. We provide some really exceptional tax advantages. The fact that we are headquartered in Puerto Rico is a big interest for many investors, as they must pay between twenty-five to thirty-five percent tax on any short-term capital gains if they employ hedge funds based in the mainland United States. Capital gains taxes are significantly lower for funds domiciled in Puerto Rico. That concludes the two minute tactics we’ve been employing to develop the fund.
As an entrepreneur, what was one failure you had to face & learn from ... and how did you overcome it?
I’ve been entrepreneurial since a very young age, and as a result, I’ve founded a variety of enterprises. The one hurdle I would name as a recurring issue is beginning ventures in fields in which I am not really passionate. I formerly owned an e-commerce firm, but I’m not as passionate about it as I am about investing, trading, and being a hedge fund manager.
Thus, the primary failure was in failing to choose the right industry for me and my interests, as well as in failing to recognize where the best opportunities are located. That is a significant aspect of becoming an entrepreneur. You can have the strongest product in the world, but if the timing or opportunity are not ideal, the business will almost certainly fail. A critical component of every business’s success is determining the optimal time; determining when opportunity meets preparedness. The convergence of these two qualities is frequently what distinguishes an enterprise as a success.
What is one business idea or sector that you are watching, that you could clue our readers in on?
I recently had the chance to consult with a biotechnology and pharmaceutical company specializing in cell and gene therapy, and it was a really fascinating experience. In the biotechnology industry, a new procedure enables scientists to tweak genes determining eye and hair color, resulting in what are referred to as “designer babies.” Of course, gene therapy is not limited to changing eye or hair color. It may be feasible in the near future to change genes to prevent individuals from developing cancer or other uncommon diseases.
I truly believe it will alter the course of human history. Biotech businesses are developing products that will benefit people who suffer from a variety of ailments. I believe that these incredible achievements will help everyone, from the elderly to young folks and infants. Creating a firm that leverages these new technologies in some manner strikes me as an incredible concept.
Is there one software or service that has helped you be more productive (or focused)?
I’m a big fan of Google’s Business workspace platform. I’d spent my whole career using Microsoft software, but I just switched to the Google workspace. As a result, I’m now storing all of my documents in Google Docs, Google Forms, and Google Drive.
It’s ideal for maintaining organization and tracking all of my files. Whether they are legal documents, government paperwork, or grant records, they all require proper organization and filing. I’d say that the Google Business workspace considerably assists me in doing this and keeps me connected to my colleagues.
Could you recommend a book to our readers that helped you along your entrepreneurial journey ... and explain how it did so?
While this is not a specific book, I believe it is critical to read about organizational development. As a business owner or CEO, it is essential to understand how an organization develops and functions, as well as how to maximize its efficiency and productivity to ensure success.
Organizational development is concerned with the culture, management, and psychology of a business, in order to ensure that while managing a large number of varied people, each with their own individual personality, you can keep them happy and operating at their best.
What is your favorite quote?
It’s a phrase from Warren Buffet, one of the world’s richest investors. “Be fearful when others are greedy, and greedy when others are fearful,” he remarked. That statement is applicable to any market. It’s almost as though reverse psychology is involved.
What I take from the phrase is that when others are buying, it could be a good time to sell, and when others are selling, it might be a good time to purchase. Indeed, it is a guiding concept that enables me to draw conclusions about how individuals will invest in any given circumstance.
Most Important Lessons Learned:
1. Developing simple routines, such as exercising and eating a balanced diet, is critical for overall productivity.
2. The investment management, biotechnology and pharmaceutical sectors, as a result of breakthrough techniques, provide a conducive environment for startups and investors alike.
3. It is critical to demonstrate to coworkers and colleagues that you recognize their abilities and efforts.
