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Rank #163 in Investing category

Business
Investing
Management

Capital Allocators

Updated 9 days ago

Rank #163 in Investing category

Business
Investing
Management
Read more

Meet the people who allocate vast pools of capital and the processes they employ. New episodes release on Monday's

Read more

Meet the people who allocate vast pools of capital and the processes they employ. New episodes release on Monday's

iTunes Ratings

439 Ratings
Average Ratings
399
20
9
5
6

Exceptional

By CRH 91 - Nov 22 2019
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Very strong content and excellent discussions

Always learning

By gswarni - Nov 22 2019
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Very interesting. Great content with practical use.

iTunes Ratings

439 Ratings
Average Ratings
399
20
9
5
6

Exceptional

By CRH 91 - Nov 22 2019
Read more
Very strong content and excellent discussions

Always learning

By gswarni - Nov 22 2019
Read more
Very interesting. Great content with practical use.
Cover image of Capital Allocators

Capital Allocators

Latest release on Jan 20, 2020

Read more

Meet the people who allocate vast pools of capital and the processes they employ. New episodes release on Monday's

Rank #1: Michael Mauboussin – Active Challenges, Rational Decisions and Team Dynamics (Capital Allocators, EP.36)

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Michael Mauboussin currently is the Director of Research at BlueMountain Capital, a multi-billion dollar hedge fund and asset manager.  He spent the majority of his professional career thinking and writing about decision making, behavior and complex systems, with long stints at Credit Suisse and nearly a decade alongside Bill Miller at Legg Mason.  Michael has been an Adjust Professor at Columbia Business School for 24 years.

Our conversation covers Michael’s early career, the paradox of skill, academic research more favorable to active management, decision-making, optimal size and composition of teams, unsettling features in the market, data analysis in sports, career risk, the Santa Fe Institute, and Michael’s new research on the horizon.

Every time I speak to Michael I come away thinking better and feeling smarter, and this time was no exception.

For more episodes go to CapitalAllocatorsPodcast.com/Podcast

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Show Notes

1:48 - What was Michael like as a kid

2:26 – How Michael found his way to Wall Street

6:18 – His start as an analyst in consumer and packaged goods

7:52 – Why there are no .400 hitters in active management and the paradox of skill

            8:15 – Full House: The Spread of Excellence from Plato to Darwin

14:26 – Why have there been massive flows into index funds over the last 3-4 years

15:44 – Academic research supporting active management

            16:09 – Mutual Fund Flows and Performance in Rational Markets

            16:25 - On the Impossibility of Informationally Efficient Markets

            22:52 - Indexing and Active Fund Management: International Evidence

23:12 – Do these trends also apply in global markets

            24:01 - The Mutual Fund Industry Worldwide: Explicit and Closet Indexing, Fees, and Performance

25:22 – What has Michael discovered in his new role at Blue Mountain through his new credit lens

            27:49 – Amazon, the world’s most remarkable firm, is just getting started

30:02 – What are some of the lenses that Michael uses when dealing with allocators

35:02 – How does Michael go about interviewing for a team while taking into account their biases

            36:19 – The Rationality Quotient: Toward a Test of Rational Thinking

36:37 – Biggest risks in the markets today

            37:31 – Banks to Funds: Have Some Leverage With That Deal

39:45 – Liquidity in the markets

41:26 – What’s most interesting to Michael about the merging of data and sports

            41:34 – The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing

            43:42 – Big Data Baseball: Math, Miracles, and the End of a 20-Year Losing Streak

            44:32 – Scorecasting: The Hidden Influences Behind How Sports Are Played and Games Are Won

45:57 – Psychological bias in sports

 46:16 - Malcom Gladwell Podcast: The Big Man Can't Shoot

47:23 – Psychological bias in investment management

            47:40 – Scott Malpass on Capital Allocators

48:44 – Michael’s work with the Santa Fe institute

            53:08 – Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life in Organisms, Cities, Economies, and Companies

54:40 – Next big piece of research Michael is working on

            57:53 – The End of Theory: Financial Crises, the Failure of Economics, and the Sweep of Human Interaction

57:59 – Should Michael be using his skills elsewhere in the context of a world where so many advocate for just indexing

            1:01:36 – Charley Ellis on Capital Allocators

1:02:31 – CLOSING QUESTIONS

Jan 08 2018

1hr 11mins

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Rank #2: Scott Malpass – The Fighting Irish’s Twelfth Man (Capital Allocators, EP.25)

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Scott Malpass is the esteemed Vice President and CIO of Notre Dame, where he oversees the University’s $12 billion endowment. Scott earned his B.A. and M.B.A. degrees at Notre Dame, and returned to South Bend at the ripe age of 26 following a brief stint on Wall Street. His track record for almost 30 years, as defined by both performance and impact, place him indisputably in rare company at the very top of the field.

Among his many accolades, Scott received Institutional Investor’s Endowment Manager of the Year award, NACUBO’s Rodney H. Adams Award, and CIO Magazine’s Lifetime Achievement Award.  He has taught students at Notre Dame since 1995 and among other directorships and advisory councils, he serves on the Boards of the Vatican Bank, Vanguard, and TIFF, and previously served on the Investment Advisory Committee for Major League Baseball.

In 2014, Scott became part of the founding group for Catholic Investment Services, Inc., a not-for-profit offering top tier investment solutions to Catholic organizations nationally.

Our conversation is a full-blown master class on endowment management, including the benefits of a long tenured team, asset allocation frameworks, passive management, preparing for dislocations, the state of venture capital, sourcing, monitoring and exiting managers, incremental process improvements, professional and personal development, and education and alignment across constituencies. It’s hard not to be in awe of Scott’s combination of humility, experience, and success.

For more episodes go to CapitalAllocatorsPodcast.com/Podcast

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Show Notes

3:26 – How Scott got started at Notre Dame 

6:22 – Why tenure of the staff is so long on Scott’s team 

8:26 – How did he handle bad hires among such a tight knit team 

9:37 – Committee makeup 

11:18 – How the continuity and depth of institutional knowledge allowed them to make better decisions 

12:51 – Their first single asset real estate investment 

14:21 – What is the best use of time for the investment team, managing a direct investment or researching new managers 

15:07 – Core investment beliefs from Scott’s past that drive the portfolio 

17:28 – Core investment beliefs that drive the portfolio today 

20:43 – How does Scott think about portfolio construction techniques 

22:49 – Factors they like to tilt towards 

23:36 – Any concerns about the focus on active managers in a world that is moving towards passive 

26:02 – How much of the US investing market should be indexed-based 

27:37 – The baseline that Scott has to consider when making investment decisions 

29:43 – Their focus on emerging and middle markets, particularly Europe 

34:01 – Pricing in the venture capital markets today 

36:31 – Implications of all of this new money moving into private market investing 

37:40 – Do private equity owners make better decisions for businesses 

39:52 – Scott’s manager selection process 

41:44 – How much time does Scott spend with managers before making a decision to invest with them

            43:14 – Jim Dunn podcast episode

44:04 – What has Scott learned about the behaviors of making that final decision on a manager

45:39 – Mistakes that Scott has learned from and corrected over the years

49:36 – Creative ways to monitor managers in the portfolio

52:08 – Scott sharing how special the managers in the portfolio are to them

54:49 – How would Scott think about an investment portfolio of $1,000,000,000 of cash

56:57 – Benefits and drawbacks of direct vs co-investments

59:43 – Biggest current subject of debate on an investment topic in the office

1:01:47 – Lessons from their annual offsite meetings

1:04:31 – Biggest concerns about the markets today and over the next 10 years

1:07:52 – Closing Questions

Sep 18 2017

1hr 20mins

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Rank #3: Patrick O’Shaughnessy – O'Shaughnessy Asset Management (First Meeting, EP.01)

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Patrick O’Shaughnessy is the CEO of O’Shaughnessy Asset Management, the host of the Invest Like the Best podcast, and a great friend.  Patrick’s podcast and widely read monthly mailing list of books, available at investorfieldguide.com, have made him a celebrity of sorts in the investing world. Those familiar with his voice will already know how wide his curious mind travels, but I image far fewer know much about his daily investing activities.

Our conversation begins with Patrick’s early start in the business and discovered passion for research. We turn to investing at OSAM, covering four core quantitative factors, how those factors work, the research process to dive deeper into each factor and explore new ones, machine learning, differentiated portfolio construction, and the impact of quants on the market.  We then turn to Patrick’s experience as a podcaster, discussing his conceptual learning loop, lessons from interviewing, and the ways he has applied lessons from the podcast to OSAM’s asset management business. We close by discussing investing in external managers, including a great nugget on probing quantitative strategies.

Patrick and I both finished this conversation feeling that we had just scratched the surface, which might be fodder for a Part B down the road.  Regardless, I’m indebted to Patrick for being the catalyst behind the creation of Capital Allocators two years ago, and it was my great pleasure to get him on the other side of the microphone.

Learn More Discuss show and Read the Transcript Join Ted's mailing list at CapitalAllocatorsPodcast.com Join the Capital Allocators Forum Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Jun 10 2019

1hr 13mins

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Rank #4: Deep Dive into Hedge Funds (Capital Allocators, EP.34)

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I’ve received several emails over the last bunch of months asking for my take on the investing world and the topics we cover on the show. Fortunately, I’ve had a chance to appear as a guest on a few other podcasts, and thought I would share some of those conversations from time to time.

About a year and a half ago, Patrick O’Shaughnessy interviewed me to discuss the book I wrote on his amazing podcast, Invest Like the Best. The discussion quickly turned to a deep dive on hedge funds - past, present and future.

We subsequently recorded two other conversations.  For the first, I asked him to interview me about the Buffett Bet. You can find that conversation on Episode 5. In the second, Patrick interviewed me alongside our friend and star micro private equity investor, Brent Beshore. You can find that entertaining conversation at Invest Like the Best, Episode 30.

For more episodes, go to capitalallocatorspodcast.com/podcast

Follow Ted on twitter at @tseides

Dec 18 2017

1hr 17mins

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Rank #5: Michael Mauboussin – Who’s on the Other Side (Capital Allocators, EP.99)

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Michael Mauboussin is the well-known investment strategist currently plying his wares at Blue Mountain Capital.  He joined me for the second time to discuss his new research entitled “Who’s on the Other Side?” 

Our conversation dives into the work, discussing how investors can focus on process over outcome, the four types of investment edges, behavioral traits of single and group portfolio managers, portfolio position weighting, informational edges available from paying attention and complexity, the principal-agent issues that create cycles and opportunities during dislocations, the growth of private markets, and implementing his research.  We close with a discussion of data analytics in the game of lacrosse.

Learn More Discuss show and Read the Transcript Join Ted's mailing list at CapitalAllocatorsPodcast.com Join the Capital Allocators Forum Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast

May 13 2019

57mins

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Rank #6: Annie Duke - Improving Decision Making [Capital Allocators, EP.39]

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Annie Duke is a renown public speaker and decision strategist. For two decades, she was one of the top poker players in the world, including winning a World Series of Poker bracelet and the $2 million winner-take-all WSOP Tournament of Champions. Her study of the science of smart decision-making began with a National Science Foundation Fellowship, which she used study Cognitive Psychology at the University of Pennsylvania.  Among her charity work and television appearances, Annie was a runner-up to Joan Rivers on Celebrity Apprentice, during which she raised $700,000 for Refugees International. She is a natural teacher and storyteller with an active mind that constantly searches for accurate truth.

I highly recommend Annie’s new book, Thinking in Bets, which comes out this week. In her life after poker, she is a featured speaker, writes a newsletter and a blog, and advises companies on improving their decision-making process. Have a look at her website, annieduke.com, for more information.

Our conversation discusses Annie’s path from an Ivy League education to professional poker, the nature of a bet, how we form beliefs, why we make bad decisions, and what we can do to improve our decision-making process. Towards the end, we also talk about bankroll management, poker faces, and advice she would give the President on how to make better decisions.

For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Write a review on iTunes

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Show Notes

2:30 – Annie’s path through the poker world 

6:05 – Her transition into teaching and the lesson of tilt 

11:57 – How do you apply the concepts of betting and gambling broadly to decision making 

13:35 – What is it about the science of the brain that prevents us from making good decisions

            14:17 – Stumbling on Happiness

            14:19 – Dan Gilbert Ted Talk

            15:44 – Kluge: The Haphazard Evolution of the Human Mind

18:50 – Motivated reasoning 

21:10 – Is there anything we can do to fix our decision-making biases (wanna bet) 

28:05 – Other devices to improve our decision-making 

32:29 – Value of a decision group

            33:16 – Superforecasting: The Art and Science of Prediction

34:00 – Mertonian Norms, CUDOS

40:27 – Mental time travel (Marty McFly from Back to the Future)

            42:55 – Jerry Seinfeld – Night Guy vs Morning Guy

44:55 – Applying these tools and the parallels between poker and investing 

48:59 – Reading poker faces

            49:21 – Joe Navarro books

            49:34 – Joe Navarro Psychology Today

52:50 – What advice would Annie give President Trump in terms of improving his decision-making process 

53:52 – Favorite sports moment 

55:45 – What teaching from Annie’s parents has most stayed with her 

56:08 – What information does Annie read that a lot of people might not know about that is valuable

            56:18 – The Greatest Show on Earth: The Evidence for Evolution

            56:19 – Why Evolution Is True

56:58 – What life lesson does Annie wish she knew earlier in life

58:28 – Looking ahead, what advice would Annie give herself today from a ripe old age

Feb 05 2018

1hr

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Rank #7: Paul Black - Gratitude, Fun, and Growth Stocks (Capital Allocators, EP.51)

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Paul Black is Co-CEO and portfolio manager at WCM Investment Management, a $26 billion manager of global equities that he joined when it was a $200 million boutique in 1989.  With so much of the institutional world, including my own training, focused on value investing, I was pleasantly surprised to learn about a large, high performing growth stock manager located in a non-descript building in Laguna Beach, California.

Our conversation starts with Paul’s trial-by-fire entry into the business and turns to growth stock investing, including defining a great growth company, searching for widening moats, assessing a culture tied to competitive advantage, creating a positive culture, learning from mistakes, identifying tailwinds, and protecting the downside.

Paul embodies the principals he preaches and offers some tasty food for thought.

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Show Notes

2:54 – How Paul got started in the business

4:52 – Lessons learned in the early years of his career

            5:56 – Common Stocks and Uncommon Profits and Other Writings

            6:01 – Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

            6:05 – The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

7:49 – What works about growth stock investing

9:01 – What constitutes a great growth company

13:47 – Defining and measuring a company’s competitive advantage

17:50 – How does he assess a company’s culture

            19:41 – The Culture Cycle: How to Shape the Unseen Force that Transforms Performance

20:26 – Questions that help assess company culture

21:57 – Any data to back up claims that companies with good cultures perform better over time

22:46 – Culture aligning with competitive advantage

24:30 – Looking at WCM’s moat and culture

31:23 – The landscape for active management

33:53 – Weathering tough periods for the firm

37:02 – How do they think about culture in other countries

39:01 – Why does growth stock investing work when the data shows otherwise

40:47 – What is he excited about in growth stocks

43:45 – Tailwinds at the sector level

45:10 – Downside protection in the portfolio

46:38 – Patterns of positive and negative allocator behavior

48:35 – How do they manage the change in the portfolio going from 200 million to 26 billion

49:53 – Closing questions

May 07 2018

55mins

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Rank #8: Dawn Fitzpatrick – Multi-Faceted Investing at Soros Fund Management (Capital Allocators, EP.112)

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Dawn Fitzpatrick is the Chief Investment Officer at Soros Fund Management, where she manages $25 billion in Soros family and philanthropic assets. Dawn started her career as a trader at O’Connor and went on to serve as the global head and CIO of O’Connor. In 2016, UBS Asset Management promoted her to Global Head of Equities, Multi-Asset and O’Connor, where she oversaw more than $500 billion in assets. Dawn regularly appears on lists of the most powerful women in finance, most recently getting named to the 2018 Worth Power 100.

Our conversation starts with Dawn’s development in the industry from trading in option pits to navigating the Global Financial Crisis at O’Connor and leadership roles at UBS. We then turn to her taking the helm at Soros Fund Management, including creating a long-term strategy tied to the needs of the Foundation, building in short and medium-term targets to allow flexibility, blending internal and external management, connecting the dots across asset classes, sharing perspectives on public markets, private credit and private equity and measuring and managing risk.

Dawn contends that Soros has a uniquely attractive platform for the right type of leading investors to apply their trade, and I would agree. If you’re a manager interested in having a look, reach out to Brenda Formes at Brenda.Formes@soros.com

Learn More Read the Transcript Subscribe to the Capital Allocators Blog or Monthly Mailing List Don't Subscribe, but Let Us Know Who You Are Write a review on iTunes Follow Ted on twitter at @tseides Review past episodes of the Podcast

Nov 04 2019

52mins

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Rank #9: Michael Cembalest – Eye on the Market (Capital Allocators, EP.49)

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Michael Cembalest is the Chairman of Market and Investment Strategy for J.P. Morgan Asset & Wealth Management, a global industry leader with $2 trillion of client assets under management. Michael is also a member of the Investment Committee for J.P. Morgan Asset & Wealth Management and the Investment Committee for the J.P. Morgan Retirement Plan that covers the firm’s 250,000 employees. Before taking on his current seat in 2012, he spent eight years as Chief Investment Officer of J.P. Morgan’s powerhouse Global Private Bank. Prior to his work on the buy side, Michael worked on the sell side at J.P. Morgan Securities as head strategist for Emerging Markets Fixed Income. He started his thirty-year tenure at the firm as a member of the Corporate Finance division.

Our wide-ranging conversation begins with Michael’s early career that included watching a financial crisis unfold in the late '80s and side-stepping another in the late '90s, and turns to his role as CIO of a large, global private bank. We discuss differences in asset allocation and implementation between private clients and institutions and along the way come across his evaluation of Bernie Madoff, the creation of his strategy piece - Eye on the Market, the chart that everyone hates, the impact of politics, government debt, and energy on the markets, and views about active management. Lastly, you won’t want to miss an amazing story Michael tells in answer to a new closing question.

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Show Notes

3:14 – Michael’s start at J.P. Morgan

4:12 -  The creation of the first Brady Bond

6:14 – How did starting his career during a crisis impact his views on the world

8:10 – Early career roles

10:07 – Transition to the buy side

16:30 – Differences in managing money for a public company from managing money as an independent asset manager

17:25 – Transition to CIO

18:30 – First steps in changing the private bank investment structure from a closed model

22:21 – Overseeing a diverse group of clients

29:15 – How does he stay informed about everything impacting the markets

27:54 – Assessing Bernie Madoff

28:19 – Hedge funds and the tax difference they provide

30:28 – Differences in how Michael views various asset classes between taxable and tax-exempt pools

31:40 – Shift to strategy work and writing

34:09 – How does Michael describe Eye on the Market

35:20 – Domestic politics and geopolitical impact on the markets

38:52 - Looking at the high corporate profit landscape against the enormous debts of governments, nationally and locally

42:31 - Any way out of the debt problems we are seeing at state and local government level

47:31 – Entitlement spending in other countries

48:33 – Research on energy and consumption

51:44 – Use of technology to distribute his research

53:43 – Thoughts on active management

56:30 – Closing questions

Apr 23 2018

1hr 3mins

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Rank #10: Matt Levine – Money Stuff (Capital Allocators, EP.97)

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Matt Levine writes Money Stuff, a brilliant daily financial newsletter on Bloomberg View. His column discusses current events in corporate finance and markets, with an insightful, nuanced lens and a dry wit.  As Matt describes it in his bio, he writes about the financial industry on the internet, and on the Bloomberg terminal, which is sort of like the internet but oranger. 

If you receive my monthly email, you’ll already know that I’m a huge fan of Matt’s and that Money Stuff has become my go to source of business news.

Our conversation covers Matt’s path to journalism through law school and investment banking, his daily routine, and some of his favorite writing topics, including why everything is securities fraud, stock buybacks, the CDS market, index funds, private markets, quantitative investing, and beating benchmarks.

Learn More Discuss show and Read the Transcript Join Ted's mailing list at CapitalAllocatorsPodcast.com Join the Capital Allocators Forum Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Apr 29 2019

40mins

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Rank #11: Charley Ellis - Indexing and Its Alternatives (EP.62)

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Investment luminary Charley Ellis is the founder of Greenwich Associates, author of 16 books, and one of the most sought-after industry advisors worldwide.  He also believes deeply in the paradox of skill and his latest book, The Index Revolution: Why Investors Should Join It Now, presents a compelling case for indexing for most investors..

Charley was an early guest on the show and we reconvened to talk through the full case of indexing for individuals and some of its constraints for institutions.  Our conversation covers the case for indexing, smart beta, the retirement problem, investing in alternatives, private equity, and indexing challenges in emerging markets.

After we turned off the recording, Charley proffered that we offer a prize for anyone who can find valid fault with the case against active management for most investors. Any takers can drop me an email, and I’ll be happy to put them toe-to-toe with Charley to debate the issue.

Discuss the show and Read the transcript

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Jul 30 2018

1hr 14mins

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Rank #12: Josh Wolfe – Seeing the Lux (Capital Allocators, EP.65)

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Josh Wolfe is the co-founder of Lux Capital, a $1.5 billion venture capital firm formed to support scientists and entrepreneurs who pursue counter-conventional solutions to the most vexing puzzles of our time. Josh’s innovative thought process across his activities offers frameworks and insights applicable across the spectrum of investing.

Our conversation covers Josh’s early passion for science and finance, building a competitive advantage in venture capital from scratch, sourcing ideas, conducting due diligence, making investment decisions, constructing portfolios, making exits, learning from mistakes, navigating a challenging private equity environment, posting on Twitter, active vs. passive management, dinner table conversation, and life lessons.

Discuss the show and Read the transcript

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Aug 20 2018

1hr 9mins

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Rank #13: Steve Rattner – Overseeing Michael Bloomberg’s Family Office (Capital Allocators, EP.113)

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Steve Rattner is the Chairman and CEO of Willett Advisors, which invests former New York Mayor Michael Bloomberg’s personal and philanthropic assets. Steve’s career has ranged from a journalist for the New York Times to investment banking at Lehman Brothers, Morgan Stanley and Lazard Freres, to founding private equity firm Quadrangle Group, and lastly to serving in the Obama Administration as head of the successful restructure of the automobile industry after the financial crisis. He returned to oversee Willett Advisors after his work in the government.

Our conversations starts with a quick tour through each of Steve’s careers, and then turns to his work investing the assets of Michael Bloomberg’s family office, including selecting an investment model, building a team of specialists, using internal management to supplement external managers, and thinking through private equity, hedge funds, public equity, and the manager selection process. We close with Steve’s perspectives on China and his ongoing engagement in politics.

Learn More Read the Transcript Subscribe to the Capital Allocators Blog or Monthly Mailing List Don't Subscribe, but Let Us Know Who You Are Write a review on iTunes Follow Ted on twitter at @tseides Review past episodes of the Podcast

Nov 18 2019

53mins

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Rank #14: Dan Ariely – Investing in Irrationality (Capital Allocators, EP.93)

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Dan Ariely is a renowned behavioral economist, author, entrepreneur, and investor.  He is the James B. Duke Professor of Psychology and Behavioral Economics at Duke University and a founding member of the Center for Advanced Hindsight.  Dan is the author of six books, most of which have the word “Irrationality” in the title and has a weekly column in the The Wall Street Journal called “Ask Ariely.” Dan’s TED Talks have been downloaded more than 10 million times.

Dan also is a Founding Partner of Irrational Capital, an investment firm that identifies and quantifies the nuanced relationship between companies and their employees, and invests in human capital factors that are linked to long-term stock price performance.  Last month, Irrational Capital announced a strategic partnership with Jeff Ubben’s ValueAct Capital, a firm that shares their belief in the importance of the impact of corporate culture on long-term enterprise value.

Our conversation starts with Dan’s journey studying pain and intuition and turns to applications of his research in the corporate setting.  We discuss his research process, measurement of human capital, applying experiments to an investment strategy, employee motivation and compensation schemes as investment factors, and constructing a portfolio of factors based purely on human capital.  We close by touching on Dan’s projects in government and with start-ups.

Learn More Discuss show and Read the Transcript Join Ted's mailing list at CapitalAllocatorsPodcast.com Write a review on iTunes Follow Ted on twitter at @tseides For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Apr 01 2019

1hr 9mins

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Rank #15: Thomas Russo – Buy and Hold...and Then What (Capital Allocators, EP.16)

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Tom Russo is the Managing Member of Gardner Russo & Gardner, where he manages $11 billion in a long only, global value strategy. Tom buys the stock of global consumer businesses with great brands and holds them for a really long time. He looks for businesses with a capacity to reinvest free cash flow and a capacity to suffer through short-term pain in order to achieve long-term gain. Tom started his investment career at the Sequoia Fund in New York, where he worked from 1984 to 1988. His first partnership, Semper Vic Partners, has compounded at 14.6% per year for 33 years, besting the S&P 500 by 3.6% per annum.

Tom is a graduate of Dartmouth College (B.A., 1977), and Stanford Business and Law Schools (JD/MBA, 1984). He has served on Dean's Advisory Council for Stanford Law School, Dartmouth College's President's Leadership Council, and the Advisory Board for the Heilbrunn Center for Graham & Dodd Investing at Columbia Business School, as well as on the boards of the Winston Churchill Foundation of the U.S., Facing History and Ourselves, and Storm King Art Center.

Our conversation covers how Tom created an investment strategy by personalizing early lessons from Warren Buffett, the capacity to re-invest, the capacity to suffer, and what it takes to own a stock for decades.  Tom’s time horizon and fortitude as an investor parallels those of institutions with permanent capital. Listeners will get a fresh perspective on what it means to be a long-term investor

For more episodes go to CapitalAllocatorsPodcast.com/Podcast

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Show Notes

3:20 – How the spark got lit for Tom to become a value investor

            3:54 – The Sharpe Ratio 

6:26 – Family and personal background

8:03 – Move to consumer brands

12:06 – Key tenants to investing in consumer brands

            12:26 – Family controlled

            14:04 - Capacity to reinvest

            15:17 - Capacity to suffer

19:10 – Portfolio turnover and the investment in Heineken

22:46 – Position sizing when portfolio turnover is so low

25:08 – Opportunity costs and behavioral finance

28:58 – Benefits of insider insights

31:02 – The capacity of Tom's investors to suffer

34:00 – What is happening today with the investor base and their capacity to suffer

36:07 – The structure of Tom's strategy vs. a more a diversified portfolio

37:28 – Sitting on investment committees

38:02 – Comparing Tom's decision-making process to Warren Buffett's

40:29 – Case study of Wells Fargo

44:21 – Does reputational damage impact the ability to reinvest

47:04 – Tom's research process and the importance of listening

49:46 – How Tom keeps track of nuggets in everyday conversations

51:00 – Closing questions

Jul 10 2017

59mins

Play

Rank #16: James Williams – Curating The Getty’s Assets (Capital Allocators, EP.50)

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Jim Williams is the Vice President, Chief Investment Officer, and Treasurer of the Getty Trust, where he oversees a $7 billion portfolio for the Getty Museum. Before joining the Getty in 2002, Jim spent three years as the President of Harbor Capital Advisors and prior to that, was manager of the Ford Motor Company pension department.

Our rich conversation covers all aspects of managing a significant pool of non-profit assets including modeling liquidity, creating a specialist team structure, sourcing managers, discerning between talented managers, co-investing, sizing manager positions, investing in venture capital, viewing hedge funds like a basketball point guard, working with a constructive board, and finding opportunities in the current “least dirty shirt” market.

This conversation ranks way up there in the breadth, depth, and quality of discussion. I hope you enjoy listening as much as I enjoyed speaking to Jim.

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Show Notes

2:40 – A look at Jim’s background and how he got to the Getty Museum

8:23 – A look at the pool of capital at Getty

9:47 – How does the high dependence of the endowment on the institution impact asset allocation

12:17 -  How do they think about liquidity

14:29 – What happens when they find a priceless work of art to acquire

17:52 – What beliefs did Jim bring to the table in shaping how Getty allocated capital

22:46 – How does Jim think about asset allocation vs manager selection

24:17 – Their approach to China

24:55 – Finding good managers in China

27:29 – What are underlying factors when choosing between two similar managers

30:34 – What are some ways Jim determines if people have the “stuff” to manage capital

34:23 – Deep dive into the co-investment program

36:07 – How do they underwrite co-investments in a short period of time

37:53 – Why do they pass on co-investment opportunities

40:58 – How does Jim size investments

42:24 – Number of manager relationships across the portfolio

44:14 – Thinking about the level of diversification their strategy creates

48:35 – Jim’s take on public equities and hedge funds

51:15 – Exploring the working relationship with the board and trustees

53:19 – Why do endowment and foundation trustees seem to have more success than other groups of trustees

54:24 – How does Jim exercise his decision-making authority

56:06 – Example of when Jim pushed back on an idea from a senior member of the team

1:00:47 – How have they found and retained team members

1:03:35 – Other competitive advantages that Jim brings to the table

1:05:20 – What is Jim most excited about and most worried about in the markets/his portfolio

1:09:28 – Closing questions

Apr 30 2018

1hr 16mins

Play

Rank #17: Thomas Russo – All About Berkshire Hathaway (Capital Allocators, EP.89)

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Tom Russo is the Managing Member of Gardner Russo & Gardner.  Tom and I sat down in Episode 16 to discuss his background and investment strategy in what was one of the most popular episodes on the show.  He oversees $13B in a global value strategy focused on family-operated public companies.

Our second conversation is a two-part episode for this week and next.  First, we talk solely about his holding in Berkshire Hathaway, a stock he first bought 38 years ago.

The conversation covers Tom’s initial purchase of Berkshire, company meetings, reaffirming his thesis and search for disconfirming information, the genius of Warren Buffett, research on Mitek, cross-fertilization of Berkshire’s CEOs, the subdivisions of insurance, public market investments and regulated businesses, valuation, compensation, Berkshire after Warren, and Tom’s sell discipline.

We close with a teaser for next week’s episode, as Tom reveals the name of the first significant stock he’s bought for his clients in eight years.

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Mar 04 2019

55mins

Play

Rank #18: Brett Barth – Asset Allocation for Families (Capital Allocators, EP.03)

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Brett Barth is a founder and the CIO of BBR Partners. BBR manages north of $12.5B on behalf of 125 families in its multi-family office. In this episode, we start talking about raising twins, a family issue close to both of our hearts. From there we learn about how Brett came to form BBR. We spend a lot of time going into depth on his firm’s asset allocation process and on the decision-making process of manager selection.  Along the way we touch on inefficiencies in Asia in the early days and in music royalties today.  Brett offers nuggets of practical substance for allocators of all types – from financial advisors to large institutional managers. For more episodes, go to capitalallocatorspodcast.com/podcast Follow Ted on twitter at @tseides

Apr 20 2017

53mins

Play

Rank #19: Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82)

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Jean Hynes is a Managing Partner at Wellington Management, where she one of three people responsible for the governance of Wellington’s storied partnership.  Jean also is the sector leader of the firm’s healthcare team that manages the Vanguard Healthcare Fund, three global healthcare hedge funds, and global healthcare sector portfolios. She joined Wellington after graduating from college in 1991 and has been at the firm ever since. 

Our conversation covers Wellington’s humanistic culture, its evolution from a U.S. value shop to a global federation of boutiques, talent recruitment, the successful merit-based partnership structure, and the Wellington of the future.  Along the way we touch on Jean’s progression from an administrative assistant to a Managing Partner, the healthcare team’s investment philosophy and process, a day in her work life, and topical issues of active vs. passive, public and private investing, and large vs. small firms.

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Discuss show and Read the Transcript

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For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Jan 14 2019

52mins

Play

Rank #20: The Bet with Buffett (Capital Allocators, EP.05)

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Today’s show is a little different from my ongoing series of conversations with Capital Allocators.  As you probably know, about 9½ years ago I made a bet with a certain Oracle, in Omaha, that pitted the performance of a group of five hedge fund of funds against the S&P 500. In this year’s annual letter to Berkshire Hathaway shareholders, Warren wrote extensively about his views. You can find that letter at www.berkshirehathway.com/letters. Now I haven’t said a lot about the bet, although fairly often I’m asked how it came about, why I made the bet, what I really think about hedge funds and the market, and of course, who's winning. I thought long and hard about whether to share my views publicly, and had been leaning towards staying out of the limelight.  But my guest on Episode 2 of this podcast, André Perold, convinced me that I should share the many other investment lessons the public can learn from this exercise. I thought a podcast would be a perfect venue to discuss my thoughts, so I asked my friend Patrick O’Shaughnessy to discuss the bet with me, and that conversation follows. Before we dive in, I thought it might help to let you know where to find answers to some of those common questions I’m asked. For starters, Carol Loomis, the legendary and recently retired Fortune columnist, wrote a wonderful piece called “Buffett’s Big Bet” back in 2008 that described in detail how the bet came to pass.  You can find her piece at www.capitalallocatorspodcast.com/bet. On that same page, you can find links to some of my written thoughts – both at the time of the bet’s inception and two years ago. Next week, I’ll add another link with some concluding thoughts.

For more episodes go to CapitalAllocatorsPodcast.com/Podcast

Follow Ted on twitter at @tseides

May 02 2017

1hr 10mins

Play

Beezer Clarkson – Sapphire Gem of Early Stage Venture (Capital Allocators, EP.120)

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Beezer Clarkson is Managing Director at Sapphire Ventures where she is responsible for the management of Sapphire’s fund investments in early stage venture funds globally.  Her career through direct and fund investing has left her with unusually deep knowledge and insights in the space.

Our conversation starts with Beezer’s meandering career and turns to her work at Sapphire, including its structure and unique relationship with SAP, Series A investing, winnowing through a massive funnel of fund opportunities, the due diligence process and re-underwriting process, implications of companies staying private longer, and #OpenLP, a public forum to hear the voice of VC LPs that Beezer created with past podcast guest Chris Douvos.

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Jan 20 2020

57mins

Play

Gregory Zuckerman – Decoding Renaissance Medallion (Capital Allocators, EP.119)

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Gregory Zuckerman is a special writer at the Wall Street Journal and the author of five books, including his most recent, The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution.  Greg joined the Journal in 1996 and writes about big financial trades, firms, and personalities.  He’s a three-time winner of the Gerald Loeb award, the highest honor in business journalism, and his work has included breaking the stories of the discord between Bill Gross and PIMCO, the London Whale trade, subprime mortgage collapse, and meltdown of hedge fund Amaranth in 2007. Our conversation starts with Greg’s path to journalism, touches on the aftermath of his book The Greatest Trade Ever about John Paulson and the subprime meltdown. We then turn to his recent tome on Jim Simons and Renaissance, including the formation and evolution of the Medallion fund, precarious moments in its history, the human element of a quant shop, differences between Renaissance and other quant competitors, leadership, impacting the world with vast wealth, and why Renaissance has been so special.

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Jan 06 2020

1hr 2mins

Play

The Best of 2019 (Capital Allocators, EP.118)

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Our annual rundown of the most downloaded shows of 2019.  Wishing you a new year filled with wealth, health, and joy.

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Dec 30 2019

4mins

Play

Dr. Sarel Vorster – Conducting Brain Surgery (Capital Allocators, EP.117)

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Dr. Sarel Vorster is a practicing neuro surgeon at the Cleveland Clinic, where he performs procedures on the brain and spinal cord. Sarel has a cross-disciplinary interest in the effect of stress and risk on cognition and decision-making.  He attended Yale to study for an MBA at the ripe age of 50 to pursue that interest.

Our conversation covers the process of conducting surgery, offering an thorough example in a high stakes field. We discuss communicating with patients, making the decision to operate, preparing, using checklists, assessing outcomes, managing risk in a life or death situation, managing a team, improving skills, coping with stress, and seeing similarities between surgery and finance.

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Dec 23 2019

54mins

Play

Neal Triplett and Kim Lew – Issues of Management at Duke and Carnegie (Capital Allocators, EP.116)

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Neal Triplett is the CIO of DUMAC, the organization that oversees Duke University’s $19 billion endowment, and Kim Lew is the CIO of the Carnegie Corporation, where she manages the $3.5 billion foundation created by Andrew Carnegie. A few weeks ago, Institutional Investor named Kim its CIO of the Year.  She also appeared on the show last year in Episode 52, which is replayed after this one on the feed. I had the chance to interview Neal and Kim at the 2019 TIFF Annual Investment Forum.  Neal and Kim are Board members of TIFF, a non-profit organization founded in 1991 as The Investment Fund for Foundations, that today manages $7.5 billion on behalf of only other non-profit pools of capital.

Our conversation covers a number of topics relating to Neal and Kim’s respective day jobs, including the evolving of their investment approach, integrating macroeconomic risk, defining their own competitive advantage, managing a team, countering behavioral biases, using data in manager evaluation, and tackling the most challenging part of their jobs.

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Dec 16 2019

38mins

Play

Kip McDaniel – How to Get an Allocator’s Attention (Capital Allocators, EP.115)

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Kip McDaniel is the Chief Content Officer and Editor-in-Chief at Institutional Investor.  In the early days of Capital Allocators, Kip joined me to share his insights about the CIOs he covers as a journalist. You can find that show in the feed right after this one.

This time, we got together to talk about II’s business and the lessons he’s learned in producing content for allocators.  We cover the four key characteristics of a well-written story, the increasing use of PR firms by asset managers, and the essential importance and tricks of the trade of effectively packaging content. Kip stays true to his roots as a storyteller and offers a few great ones here again.

On the intro, I recorded Please enjoy twice - use the second one (Please enjoy my second conversation with Kip McDaniel)

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Dec 09 2019

57mins

Play

[REPLAY] Kip McDaniel – CIO Whisperer (Capital Allocators, EP.20)

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Kip McDaniel is the Chief Content Officer and Editorial Director at Institutional Investor.  Prior to joining II a year ago, Kip spent seven years as the Founding Editor and Editor-in-Chief of CIO Magazine, a media platform that led him to interview 2,000 Chief Investment Officers across every type of asset base around the world. Kip is a graduate of Harvard College, received a Master’s at Cambridge University, and was an elite crew rower, culminating in bringing home bronze medals for Team Canada in two World Championships.

Kip is inordinately well-liked in the community, and I had a hunch I would learn a lot from getting his perspective on the people who make capital allocation happen. Suffice it to say, I wasn’t disappointed.

Our conversation starts with an inside look at Chief Investment Officers – how Kip finds them, ranks them, and discovers what makes them tick. Over the back half of the discussion, we turn to the lessons he’s learned about investment success, incentives, fads, and issues that permeate capital allocation. Kip’s modus operandi is story-telling, and this conversation is chock full of good ones.

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Dec 09 2019

1hr 7mins

Play

Anne Martin - Pulling the Oars as CIO of Wesleyan University (Capital Allocators, EP.114)

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Anne Martin is the Chief Investment Officer for Wesleyan University, where she manages the school's $1 billion endowment. Anne's career started in the tech world and shifted to endowment management at Yale's famed investments office. She took over at Wesleyan a decade ago, as one of a handful of Yale Investment alumns serving other institutions.

Our conversation covers Anne's path from competitive rowing to the tech world and a fortuitous connection with David Swensen. We cover the transferable skills from private equity to endowment management, key lessons learned at Yale, experience taking on a "start-up" at Wesleyan, application of knowledge to a smaller pool of capital, development of a team and a portfolio, perspectives on natural resources and venture capital, and Wesleyan's competitive advantage as an allocator.

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Dec 02 2019

53mins

Play

Drew Dickson – Blending Behavior and Fundamentals at Albert Bridge Capital (First Meeting, EP.13)

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Drew Dickson is the founder of Albert Bridge Capital, and CIO of the Alpha Europe funds, where he manages $350 million in European equities.

Our conversation covers Drew’s early career across the Chicago school, Fidelity and Och-Ziff, and his perch in Europe. We then go through Albert Bridge’s investment process, portfolio construction, assessment of risk-reward, and client communication through blogging and tweeting. All told, Drew offers a deep dive on how to blend fundamental research and behavioral finance in taking on the stock market.

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Nov 25 2019

53mins

Play

Steve Rattner – Overseeing Michael Bloomberg’s Family Office (Capital Allocators, EP.113)

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Steve Rattner is the Chairman and CEO of Willett Advisors, which invests former New York Mayor Michael Bloomberg’s personal and philanthropic assets. Steve’s career has ranged from a journalist for the New York Times to investment banking at Lehman Brothers, Morgan Stanley and Lazard Freres, to founding private equity firm Quadrangle Group, and lastly to serving in the Obama Administration as head of the successful restructure of the automobile industry after the financial crisis. He returned to oversee Willett Advisors after his work in the government.

Our conversations starts with a quick tour through each of Steve’s careers, and then turns to his work investing the assets of Michael Bloomberg’s family office, including selecting an investment model, building a team of specialists, using internal management to supplement external managers, and thinking through private equity, hedge funds, public equity, and the manager selection process. We close with Steve’s perspectives on China and his ongoing engagement in politics.

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Nov 18 2019

53mins

Play

Jason Karp – From Hedge Funds to Health and Wellness at HumanCo (First Meeting, EP.12)

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Jason Karp is the Founder and CEO of HumanCo, a mission-driven, disruptive holding company focused on investing in healthier living. Before diving into this endeavor, Jason had a very successful twenty-year career in the hedge fund industry, culminating in a six-year run as founder of Tourbillon Capital.

Our conversation covers Jason’s career in hedge funds across quant research, quantamental investing, and entrepreneurship.  Along the way, we touch on lessons derived from checklists, poker, and chess, and discuss Jason’s sobering take on the hedge fund industry today.

We then turn to changes in his life, including moving from NYC to Austin and focusing on his lifelong passion for health and wellness. We discuss Jason’s autoimmune disease, testing the limits of human performance, and the sickness that led to the creation of Hu Kitchen with his wife and brother-in-law.

Lastly, we discuss the formation of HumanCo, a holding company investing in food and consumables that create clean solutions to common problems using only the highest quality ingredients. We cover the attractive attributes of consumable businesses, use of data and AI to source companies and improve inventory management, efficiency of a holding company structure, incubating companies, leveraging data science, and an example in the cannabis space to work on the controversy surrounding vaporization.

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Nov 11 2019

1hr 8mins

Play

Dawn Fitzpatrick – Multi-Faceted Investing at Soros Fund Management (Capital Allocators, EP.112)

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Dawn Fitzpatrick is the Chief Investment Officer at Soros Fund Management, where she manages $25 billion in Soros family and philanthropic assets. Dawn started her career as a trader at O’Connor and went on to serve as the global head and CIO of O’Connor. In 2016, UBS Asset Management promoted her to Global Head of Equities, Multi-Asset and O’Connor, where she oversaw more than $500 billion in assets. Dawn regularly appears on lists of the most powerful women in finance, most recently getting named to the 2018 Worth Power 100.

Our conversation starts with Dawn’s development in the industry from trading in option pits to navigating the Global Financial Crisis at O’Connor and leadership roles at UBS. We then turn to her taking the helm at Soros Fund Management, including creating a long-term strategy tied to the needs of the Foundation, building in short and medium-term targets to allow flexibility, blending internal and external management, connecting the dots across asset classes, sharing perspectives on public markets, private credit and private equity and measuring and managing risk.

Dawn contends that Soros has a uniquely attractive platform for the right type of leading investors to apply their trade, and I would agree. If you’re a manager interested in having a look, reach out to Brenda Formes at Brenda.Formes@soros.com

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Nov 04 2019

52mins

Play

Ash Fontana – Investing in Artificial Intelligence at Zetta Ventures (First Meeting, EP.11)

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My guest on today’s First Meeting is Ash Fontana, a Managing Director at Zetta Ventures, a venture capital firm that backs Artificial Intelligence companies with B2B business models.  The firm invests in early-stage companies with unique data sets and models, and rolls up their sleeves to help founders by using a playbook Zetta created specifically for AI companies.  Ash started his career as an entrepreneur and investor, and before joining Zetta started and built the money side of AngelList alongside Naval Ravikant. Our conversation covers Ash’s background, Zetta’s thesis, team, and strategy, and turns to Zetta’s sourcing, due diligence, decision making, portfolio construction, working for portfolio companies, and investment examples.  Along the way, we cover the evolution of AI, assessing data sets, misperceptions about AI, competing with the tech giants, and the future of investing in the space.

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Oct 28 2019

1hr 8mins

Play

Ana Marshall – Applied Direct Investing at the William and Flora Hewlett Foundation (Capital Allocators, EP.111)

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Ana Marshall is the Vice President and Chief Investment Officer for The William and Flora Hewlett Foundation, where she oversees a $10.5 billion pool of capital. Ana joined Hewlett in 2004 after spending eighteen years as a direct investor in high yield credit, emerging market debt, and international equities.

Our conversation covers Ana’s lifelong passion for investing, joining the “super buy side,” conducting company meetings to inform the manager selection and allocation process, portfolio structure, manager selection, monitoring and measuring risk, perspectives on peers, internal dynamics, and working through a big mistake.

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Oct 21 2019

52mins

Play

Jay Girotto – Farmland Opportunity (First Meeting, EP.10)

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Jay Girotto is the President of Farmland Opportunity, a $400 million investment manager that provides direct ownership of high quality, consistently productive row crop farmland in the U.S.  Like many managers in traditional asset classes, Farmland Opportunity searches for inefficient transactions, value-added improvements, and an aligned structure to maximize the benefits of farmland for the long-term. Our conversation covers Jay’s path from software engineer to farmland investor and discusses the attractive features of the asset class, including macro characteristics of uncorrelated returns and inflation hedging, and micro features of supply-demand imbalances, labor-intensive sourcing, unprofessional operations, and land value appreciation.  We then turn to Farmland Opportunity’s strategy in the area incorporating a specific regional focus, operational partners, aligned incentives, risk assessment and exit strategies.

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Oct 14 2019

38mins

Play

Jonathan Tepper - Variant Perception of Capitalism (Capital Allocators, EP.110)

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Jonathan Tepper is the founder of Variant Perception, an economic research group that works with institutional managers, hedge funds, and allocators to provide objective and comprehensive data to form actionable ideas from leading indicators and emerging trends. He is also the author of three books, the most recent of which, The Myth of Capitalism: Monopolies and the Death of Competition, received widespread acclaim earlier this year. Our conversation covers Jonathan's unusual upbringing, learning about currencies from Big Macs, building economic and liquidity forecasting models, and catering Variant Perception's research to investors. We then turn to The Myth of Capitalism, discussing the history, causes, and ramifications of the absence of competition in U.S. industries, natural and unnatural monopolies, examples in the tech giants, funeral home operators, airports, and hospitals, and what can be done to counter this negative trend.

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Oct 07 2019

53mins

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Joe Lonsdale – Entrepreneurship and 8VC (First Meeting, EP.09)

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Joe Lonsdale is a founding partner at 8VC, a leading venture capital firm that partners with top founders and entrepreneurs to build lasting technology platforms.  He began working at Peter Thiel’s PayPal while Joe was an undergraduate at Stanford, and upon graduation became an early executive at Thiel’s Clarium Capital, which became a multi-billion dollar global macro hedge fund.

From within Clarium, Joe went on to become a co-founder of Palantir, and later founded Addepar and OpenGov. After operating this series of successful start-ups, he turned to early stage venture investing for himself and then as a founding partner of Formation 8, the precursor to 8VC.  In 2016 and 2017, Joe was the youngest member of the Forbes 100 Midas List.

Our conversation begins with Joe’s dive into entrepreneurship out of school, the founding of Palantir and Addepar and his shift from operator to venture capitalist.  We discuss the venture landscape, 8VC’s competitive advantage, building new companies within 8VC, price competition for deals, the due diligence process, adding value to portfolio companies, and new ideas on the horizon in venture investing.

Although we were pressed for time, Joe packs the conversation with great nuggets of wisdom from his incredible success.

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Sep 30 2019

29mins

Play

Gary Klein with Paul Sonkin and Paul Johnson – Conducting Pre-Mortem Analysis (Capital Allocators, EP.109)

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Gary Klein is a noted cognitive psychologist with an innate ability to see what others don’t. Over his 40-year career in the field, he’s pioneered the field of naturalistic decision making, the Pre-Mortem method of risk assessment, and the ShadowBox training approach. Gary is the author of five books and editor of three more, and most recently, founded Shadow Box, LLC in 2005 to train decision makers on his technique. You can learn all about Gary at gary-klein.com.

Paul and Paul, you may recall, were guests on the show discussing their book that I greatly enjoyed, Pitch the Perfect Investment. Both are former investors and professors of finance.

Together Gary, Paul and Paul co-authored a paper entitled Rendering a Powerful Tool Flaccid: The Misuse of Premortems on Wall Street. The paper is a detailed look at how properly conduct Pre-Mortem analysis.

Our conversation covers Gary’s background studying expertise with fighter pilots, tools to improve decision-making, including the Shadow Box technique, Cognitive After-Action Reviews, and Pre-Mortems. We then do a deep dive on Pre-Aortem analysis, including its history in the Air Force, what it is, how it works, when it falls short, and the benefits of reducing overconfidence, time efficiency, increasing candor, making groups smarter. We discuss views on other risk mitigation techniques as well, including devil’s advocates, red teams, risk assessment, and critiques.

I found the conversation an incredible door opener to one of the most effective and time-efficient sources of value in improving investment decision-making processes. I’m privileged and excited to share this conversation with you.

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Sep 23 2019

49mins

Play

[REPLAY] Paul Johnson and Paul Sonkin – The Perfect Investment (Capital Allocators, EP.32)

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Paul Sonkin and Paul Johnson are investors, professors, and co-authors of Pitch the Perfect Investment.  Paul Sonkin is an analyst and portfolio manager at GAMCO Investors and has researched small, micro, and nanocap companies for a quarter century. He taught for 16 years at Columbia Business School. Paul Johnson runs advisory firm Nicusa Investment Advisors, and previously was a top-ranked sell side analyst, hedge fund manager, and an investment banker across 35 years.  He also taught 2,000 students across 40 classes at Columbia Business School and Fordham University, and has received a host of awards for his prowess in the classroom.

Their recently released book is the first I’ve come across that reverse engineers a portfolio manager’s thought process. It starts with crystal clear first principles of business analysis and covers everything an analyst needs to know to identify a great stock. Then, Paul and Paul describe how portfolio managers assess ideas. Their framework is targeted for analysts starting their careers in the field, but seasoned portfolio managers and allocators both will also learn a lot about communication with their teams from the clear descriptions and colorful examples in the book.

Our conversation covers the concept of the book, the wisdom of crowds, getting an ‘edge’, the four questions every portfolio manager needs to answer, and the role of creativity in investing. These gifted professors offer clear terminology for investment first principals and along the way offer a renewed appreciation for how difficult it is to beat the markets.

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Sep 23 2019

58mins

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Michael Schwimer - Sports Betting at JAMBOS (First Meeting, EP.08)

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Michael Schwimer is the CEO of Big League Advance (BLA) and JAMBOS.  Last year, I sat down with Michael and discussed his playing career and the formation of BLA.  That conversation, which you can listen to on the feed right after this one, has been the most downloaded episode of Capital Allocators. Our second conversation starts with an update on BLA, the private equity fund that takes stakes in the future earnings of minor league baseball players.  We touch on the implementation of the strategy and the development of the BLA sports analytics team since last year. We then discuss other ideas Michael brainstormed with his team to deploy their unparalleled horsepower in sports analytics.  That exercise led to the formation of a new sports betting service called JAMBOS.  We walk through the business of predicting the outcome of sporting events, the disruption of tout subscription services for sports betting through transparency and accountability, and the potential impact of predicting game outcomes on the future of sports and sports entertainment.  You can find out more about the service at www.jambospicks.com.

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Sep 16 2019

37mins

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iTunes Ratings

439 Ratings
Average Ratings
399
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Exceptional

By CRH 91 - Nov 22 2019
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Very strong content and excellent discussions

Always learning

By gswarni - Nov 22 2019
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Very interesting. Great content with practical use.