Jordi Visser – Next Generation of Manager Allocation (Capital Allocators, EP.92)
Mar 25, 2019
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Jordi Visser, President & CIO of Weiss Multi-Strategy Advisers, shares insights from his journey from a blue-collar upbringing to leading a $1.7 billion asset management firm. He discusses innovative strategies in equity market-neutral investments, highlighting the role of data visualization and behavioral alpha. Jordi also dives into the challenges of data analytics outside equities, the impact of high corporate leverage, and exciting opportunities in biotech. His forward-thinking approach offers a roadmap for allocators navigating the evolving hedge fund landscape.
Data visualization is crucial for risk management in multi-manager processes.
Cultural alignment and understanding of factor risks are key when hiring managers.
Adapting to evolving risks and embracing transparency is vital in the hedge fund industry.
Deep dives
Investment Platform Overview
An investment platform called TenEast, led by Michael LaFell, provides sophisticated investors access to private markets similar to having a family office without the associated costs. This platform offers opportunities to co-invest in private credit, real estate, venture and private equity, and idiosyncratic investments not typically available through traditional channels. The platform founders and investment team have a strong track record of over a decade in these investment areas across numerous transactions, ensuring ongoing monitoring and reporting similar to institutional investment standards.
Podcast Introduction and Focus
Hosted by Ted Sides, the Capital Allocators podcast delves into discussions on capital allocation processes and insights with industry leaders. In a recent episode, Jordy Viscer, the President and CIO of WICE Multi Strategy Advisors, shares insights on the firm's innovation in equity market neutral multi-manager processes. From behavioral alpha to improving performance and macro insights, the conversation covers various aspects of hedge fund industry trends and strategic positioning for the future.
Journey through Education and Business
Jordy Viscer reflects on his formative years growing up, influenced by his father's entrepreneurial background in construction and early exposure to data and analytics. His transition from high school to college, and later to a role at Morgan Stanley, highlights his evolution in learning and adapting to the financial industry. The experiences in Mexico during the emerging market crisis and subsequent roles at the firm preparing him for challenges ahead, emphasizing the importance of risk assessment and adaptability in investment decisions.
Risk Management and Decision-Making
The focus on risk management and decision-making becomes pivotal in Jordy Viscer's narrative, particularly post-the financial crisis. He discusses the behavioral alpha aspects, emphasizing the need for predictive risk management, factors driving market changes, and the role of dynamic risk adjustments. Viscer's philosophy underscores the significance of being proactive in risk mitigation, leveraging data visualizations, and behavioral cues to enhance decision-making processes in an evolving investment landscape.
Factors Considered in Hiring and Firing Decisions
When evaluating potential hires, factors beyond just financial acumen are crucial. Besides assessing if a person can generate profits consistently, the focus shifts to cultural fit within the firm and understanding of factor risk. Cultural alignment involves seeking collaborative, independent thinkers who enhance the team dynamic. However, the primary emphasis now lies on gauging candidates' comprehension of factor risk and their ability to mitigate it, transitioning from a mere focus on profitability to a more holistic evaluation.
Future Trends and Challenges in Hedge Fund Industry
Anticipating shifts in the hedge fund industry encompasses adapting to evolving risks and embracing transparency. The landscape is witnessing disruptions propelled by technological advancements and changing market dynamics. Emphasizing emotional intelligence in team composition and customizing products to meet investor needs are emerging priorities. Collaboration through strategic partnerships with key entities like pension plans and insurance firms is identified as pivotal in navigating industry transformations.
Jordi Visser is the President & CIO of $1.7 billion Weiss Multi-Strategy Advisers, an asset management firm with a 40-year history of focusing on innovative investment processes and cutting edge thought leadership.
Our conversation covers Jordi’s decade of learning at Morgan Stanley, and then turns to a deep dive on all aspects of Weiss’ equity market neutral, multi-manager process, including the importance of data visualization to risk management, behavioral alpha, improving portfolio manager performance, blending macro insights with a multi-manager team, factor-based replication, hiring managers, ranking managers, and knowing when to move on. We then discuss issues with the use of analytics outside of public equities, pending problem caused by high corporate leverage, opportunities in biotech and healthcare, the future of the hedge fund industry, and positioning an asset manager for the future.
Jordi leads a rigorous approach to identifying, assessing, and improving an internal multi-manager team using data analytics. The transparency and tools he employs are a few steps ahead of where most allocators find themselves today, and as such, his insights can shine a light on the path where all allocators can develop going forward.
