Alex Edelson of Slipstream Investors, sits down with David Weisburd and Erik Torenberg to discuss the four sources of alpha for emerging managers (Sourcing, Picking, Winning, and Value-Add). We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans.
(0:20) Episode Preview
(1:46) Slipstream’s fund strategy
(2:57) What to look for when diligencing a GP
(6:32) The typical Slipstream diligence process
(7:34) What Alex wants to hear on a GP reference call
(10:05) Why does fund performance decline in later vintages?
(12:31) Episode Sponsor: Bidav Insurance Group
(16:00) How should family offices approach venture?
(18:15) Why concentration drives performance
(19:23) Alex’s value add to GPs
(21:47) The folly of optimizing on special economics
(23:30) Generalists vs. Specialists
(26:32) Ranking of Sourcing, Picking, Winning, and Value Add by importance
(28:07) How to be a good sourcer
(30:59) How to be a good picker
(32:25) How to win deals
(33:32) Fundraising and investing are different skills
(39:51) Lessons from working at QED
(47:51) The difference between a good LP and a great LP
(49:40) How to optimize portfolio construction
(57:00) Are GPs penalized for not doing pro-rata?
(58:04) “I want to help venture firms, whether or not I invest.”
