RWH048: Betting Billions On Outlier Talent w/ Adam Shapiro
We Study Billionaires - The Investor’s Podcast Network
Intro
This chapter features a conversation with an investor managing a $4 billion portfolio, offering insights into the operations of family offices. Listeners will discover strategies for identifying investment talent and the risks involved in hedge funds and private equity.
In this episode, William Green chats with Adam Shapiro, Managing Partner at East Rock Capital. Adam oversees billions on behalf of eight vastly rich families, allocating their assets to everything from hedge funds to private equity. Here, he explains how to build & safeguard wealth over the long term; how he identifies the best fund managers; why he’s wary of index funds & ETFs; & how to thrive by building a powerful network & removing excess “filler” from your portfolio & your life.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
07:29 - Why Adam Shapiro stopped investing in emerging markets.
11:26 - Why the U.S. is a great—but potentially perilous—place to invest.
25:31 - What he learned at Goldman Sachs about intelligent investing.
32:02 - How he identifies fund managers who are likely to outperform.
40:01 - Why he favors small funds run by young & hungry investors.
45:56 - What human qualities lead to investment success.
51:53 - How Adam built an investing edge through networking.
1:13:21 - Why Adam is wary of index funds & ETFs.
1:20:05 - How David Swensen’s Yale Endowment Model can be updated.
1:21:31 - Why his #1 financial rule is “never, ever run out of liquidity.”
1:24:20 - How to reduce your risk & ensure survival in extreme conditions.
1:32:22 - Why firms like Millennium & Citadel may be riskier than they seem.
1:43:16 - How to improve your portfolio & life by subtracting excess “filler.”
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Adam Shapiro’s investment firm, EastRock Capital.
- Harvard Business School’s case study of EastRock Capital.
- Adam Shapiro’s articles in his LinkedIn newsletter.
- Check out Institutional Investor’s article on why early life-cycle funds outperform.
- Seth Stephens-Davidowitz’s book, “Don’t Trust Your Gut.”
- David Swensen’s book, “Pioneering Portfolio Management.”
- Roger Lowenstein’s book, “When Genius Failed.”
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
- Follow William Green on X.
- Check out all the books mentioned and discussed in our podcast episodes here.
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