Changes in the Institutional Investing World and the Impact of Greed

A discussion on the changes in the institutional investing world over the years, with a focus on the theme of greed, the rise of hedge funds and private equity, and the challenges of outperforming in a competitive landscape.

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Our teacher today is Harvard Business School legend, Andre Perold. Born and raised in South Africa, Andre taught at HBS for over 30 years, earning numerous awards for both his research and teaching excellence. If you were an aspiring investor attending HBS, Andre's class felt like the only class that mattered.

He co-founded HighVista Strategies, a now leading investment firm that has $10 billion of AUM and focuses on investing in structurally inefficient opportunities across both public and private markets.

In this session, Andre deconstructs the concept of compounding with an appreciation for both the academic and practical components. It was such a privilege to have Andre joined us in class as he represents the pinnacle of investor-teachers. I hope you enjoy our class with Professor Andre Perold.

For the full show notes, transcript, and links to mentioned content, check out the episode page HERE

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Show Notes

(00:00) Welcome to the Art of Investing

(02:51) First Question - Andre's Teaching Philosophy and Approach

(04:42) Historical Perspective on Compounding

(09:41) Investing in Your Human Capital

(14:34) Early Teaching Experiences and Insights

(17:51) The Importance of Networking and Experiences in MBA

(20:20) The Innate and Acquired Aspects of Teaching

(22:51) The Genesis of HighVista Investment Firm

(24:39) The Evolution of Institutional Investing

(27:12) The Shift to Smaller, Inefficient Markets