Calibrating Drawdown Tolerance

How should families think about portfolio construction when traditional diversification breaks down? David Weisburd speaks with Michael Phipps about building New Republic Partners, designing portfolios around growth, income, and diversification, and why open architecture matters in multifamily offices. Michael discusses common portfolio mischaracterizations, the role of alternatives and co-investments, and how families can better align risk, liquidity, and long-term objectives.

Highlights:

• Building a conflict-free, open-architecture multifamily office
• Designing portfolios around growth, income, and diversification
• Why fixed income may no longer provide true diversification
• The role of absolute-return strategies as portfolio ballast
• How families should think about drawdowns and risk tolerance
• Separating hedged equity from true diversifiers
• Opportunistic use of secondaries in private markets
• Benefits and risks of co-investments
• Structural challenges facing sub-$250M family offices
• Endowment model versus total portfolio approach

Guest Bio:

Michael Phipps is a Partner at New Republic Partners, a multifamily office serving families, foundations, and endowments across the Southeast. He has extensive experience in portfolio construction, manager selection, and alternative investments, and previously worked in institutional investing roles including at university endowments. Michael’s work focuses on aligning portfolios with long-term objectives, risk tolerance, and liquidity needs through an open-architecture approach. Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

Stay Connected with David Weisburd:

X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Michael Phipps:

LinkedIn: https://www.linkedin.com/in/michael-phipps-unc2004/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:02) Overview of assets under management and company structure (2:07) Open architecture and due diligence in multifamily offices (4:59) Portfolio building strategies for sizable clients (8:35) Diversification and income-generating assets (11:30) Asset roles and strategic allocation in portfolios (16:51) Co-investment opportunities and selection challenges (18:43) Special considerations for smaller family offices (21:29) Comparing portfolio construction philosophies (23:29) Timing markets and investment cycles (25:33) Lessons from Davidson and UNC Endowments (29:10) Reflective advice for future investors (30:31) Closing remarks