Bringing the Endowment Approach to Emerging Managers | John Felix | Superclusters | S3E1

Jul 1, 2024

John Felix, Head of Emerging Managers at Allocate, discusses building trust in teams, transitioning from bands to investing, managing a concentrated portfolio, evaluating GP commitments, key man risk in VC, and mastering cold emailing for connections.

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ANECDOTE

Trust Through Improvisation

John Felix learned team trust playing in his five-piece band through improvisation.
That trust now helps him read team dynamics when evaluating investment teams.

ADVICE

Plan, Then Improvise

Have a plan but leave room to adapt when things go wrong.
John Felix applies the same flexible execution mindset from music to investing and diligence.

ANECDOTE

Fortuitous Entry Into Endowments

John Felix accidentally found his career path when WashU's endowment hired while Blue Ridge shifted to a family office.
That unexpected hire launched his endowment and allocator career.

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John Felix is the Head of Emerging Managers at Allocate where he leads manager diligence and product innovation within the emerging manager ecosystem. Prior to joining Allocate, John worked at Bowdoin College's Office of Investments, helping to invest the $2.8 billion endowment across all asset classes, focusing on venture capital. Prior to Bowdoin, John worked at Edgehill Endowment Partners, a $2 billion boutique OCIO. At Edgehill, John was responsible for building out the firm's venture capital portfolio, sourcing and leading all venture fund commitments. John started his career at Washington University's Investment Management Company as a member of the small investment team responsible for managing the university's now $15 billion endowment. John graduated from Washington University in St. Louis with a BSBA in Finance and Entrepreneurship. You can find John on his socials here: LinkedIn: https://www.linkedin.com/in/johnfelix12/ Twitter: https://x.com/johnfelix123 And huge thanks to this episode's sponsor, Alchemist Accelerator: https://alchemistaccelerator.com/superclusters

OUTLINE:

[00:00] Intro

[02:35] The band that started it all

[08:43] How did a band of 3 become a band of 5?

[10:39] What bands served as inspiration for John?

[13:37] Lessons on building teams and trust

[19:48] The mischance that led John into the endowment world

[22:34] What John learned under 3 different CIOs

[26:20] What does concentration mean for Washington University's endowment?

[33:53] Portfolio construction perspectives at an endowment

[36:26] The flaws of GP commits

[41:25] How has John's approach to emerging managers changed over the years?

[44:17] What is key person risk?

[47:06] One of the biggest challenges emerging managers face

[50:45] Balancing over- and under-diligencing an emerging manager

[56:28] What are traits that GPs think are unique but actually aren't?

[1:03:36] What makes a great cold email?

[1:08:40] As a sports fan, do the highs or lows hit harder?

[1:11:53] Thank you to Alchemist Accelerator for sponsoring!

[1:12:54] Let me know if you enjoyed this episode with a like, comment or share! Follow David Zhou for more Superclusters content: For podcast show notes: https://cupofzhou.com/superclusters Follow David Zhou's blog: https://cupofzhou.com Follow Superclusters on Twitter: https://twitter.com/SuperclustersLP Follow Superclusters on TikTok: https://www.tiktok.com/@super.clusters Follow Superclusters on Instagram: https://instagram.com/super.clusters