Monetary Matters with Jack Farley Hedge Funds Are a Team Sport | Ilya Zaides on Continuity at 14B Capital
Feb 7, 2025
Ilya Zaides, Founder and CIO of 14B Capital Management, shares insights into the intricate world of hedge funds. He emphasizes that success hinges on team dynamics and stable relationships rather than just past performance. Zaides discusses the importance of effective communication during leadership transitions and how innovative incentive structures can foster collaboration. He also explores the critical role of continuous research in decision-making, particularly during turbulent times, showcasing the need for adaptability in investment strategies.
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The Genesis of 14B Capital
- Ilya Zaides and his partner split KG Funds, the predecessor to 14B Capital Management.
- Zaides retained the hedge fund portion, while his partner kept the sidecar investments.
Investor Reactions to Breakups
- Institutional investors are averse to hedge fund breakups, often waiting years for stability before reinvesting.
- High-net-worth individuals and family offices are more flexible, prioritizing investment continuity.
Institutional Risk Aversion
- Institutional investors' risk aversion stems from bureaucratic processes and box-checking requirements.
- Their definition of risk often leads to eliminating funds undergoing changes, regardless of underlying stability.