Capital Allocators – Inside the Institutional Investment Industry Mark Sullivan and Roberto Isch – Hedge Fund Investing at Wellington (EP.427)
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Jan 16, 2025 
Mark Sullivan and Roberto Isch are Partners at Wellington Management, with Mark leading the Hedge Fund Group and Roberto focusing on risk and portfolio management. They delve into the evolution of hedge fund strategies at Wellington, highlighting the shift to a structured, market-neutral approach. The duo emphasizes talent acquisition and the importance of collaboration in driving performance. They discuss navigating risks in capital allocation and leveraging market volatility for active management opportunities, while also sharing personal insights on mentorship and defining success.
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Wellington Hedge Fund Origin
- Wellington's hedge fund strategy began to retain Nick Adams.
- CEO Bob Dorn offered to start a hedge fund for Nick, seeded by Julian Robertson.
Post-GFC Hedge Fund Evolution
- Client demand for hedge funds shifted post-GFC towards diversifying strategies.
- Return-seeking allocations moved to private markets, impacting hedge fund portfolio construction.
Assessing Investment Skill
- Assess investment skill by examining portfolio risk alignment.
- If a team excels at idiosyncratic risk, their portfolio should reflect that.