10X Capital Podcast E111: KFF’s (Kaiser Family Foundation) CIO on their $700 Million Venture Capital Edge
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Nov 12, 2024 Dean Duchak, Chief Investment Officer at KFF, shares insights from his 13 years managing a $700 million endowment. He discusses the importance of creating a culture of collaboration and the complexities of asset allocation strategies. Dean emphasizes thematic investing in healthcare and AI, leveraging relationships for investment insights, and navigating market cycles. He also touches on the challenges of illiquidity in venture capital and the critical skills for institutional investors, highlighting the role of networking and adaptability in achieving successful returns.
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Venture Capital's Persistence
- Venture capital exhibits persistence of returns, more than other asset classes.
- Accessing top-tier managers is key for exceptional long-term venture performance.
True Diversification
- Underwrite investments and build a portfolio to understand exposures.
- Diversification requires careful consideration of factor, geographical, and sector exposures.
Interest Rates and Correlations
- Low interest rates created a false sense of uncorrelated assets.
- Rising rates revealed true correlations and challenged diversification assumptions.