How I Invest with David Weisburd

E181: Why Portfolio Construction Beats Manager Selection w/$7 Billion CIO

19 snips
Jun 30, 2025
T.C. Wilson, CIO of The Doctors Company, shares insights from over 35 years in investment management. He discusses the unique investment strategies for insurance firms, especially how surplus is treated like an endowment portfolio. T.C. emphasizes the importance of portfolio construction over manager selection, innovative asset management techniques, and the value of evergreen structures. He also highlights his cautious stance on large-cap private equity and the lessons of extreme ownership in leadership, providing a compelling guide for both seasoned and aspiring investors.
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ANECDOTE

T.C. Wilson's CIO Journey

  • T.C. Wilson transitioned from Mercer to become CIO at The Doctors Company after 18 years as an external consultant.
  • He built an internal team to manage a growing portfolio now at $7 billion in assets, emphasizing treasury and investment accounting expertise.
INSIGHT

Insurance Investing Uniqueness

  • Insurance companies differ from endowments as taxable entities focused on meeting claims and solvency.
  • Positive cash flow means TDC has never had to sell securities to pay claims, unlike many allocators.
INSIGHT

Surplus as Endowment Model

  • Insurance surplus is crucial for financial health, loss absorption, and competitive advantage.
  • TDC treats surplus like an endowment portfolio with latitude to invest across diverse asset classes.
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