Other People's Money with Max Wiethe

This episode is brought to you by Fiscal.ai. Sign up for a 2-week free trial and get 15% off any paid tier at: http://fiscal.ai/mm Over the last 8 years, Yaron Naymark, founder and managing partner of 1 Main Capital, has patiently grown his concentrated long-biased hedge fund by outperforming major equity benchmarks like the S&P 500. Any manager who has been in his shoes though will tell you that outperforming the market isn’t enough to attract the institutional capital necessary to seriously scale a fund. Here he discusses the importance of consistency of communication with investors, how his portfolio management has evolved, and the other operational improvements he has made that have helped spur growth. He also discusses a $20m strategic investment from Cannell Capital he took in 2025 and how he thinks about these types of “seed” deals. Sign up for 1 Main Capital’s distribution list: https://www.1maincapital.com Follow Yaron Naymark on X: https://x.com/1MainCapital Follow Max on X: https://x.com/maxwiethe Follow Other People’s Money on: Apple Podcast https://bit.ly/4e7QJ1M Spotify https://bit.ly/3Yhaazi YouTube https://bit.ly/3C63VXR X https://x.com/opmpod Timestamps 00:00 Introduction and Personal Insights on Investing 00:43 Guest Introduction and Fund Background 00:55 Fund Growth and Milestones 02:41 Challenges and Turning Points 03:20 Marketing and Investor Relations 07:41 Economic Considerations and Fund Management 10:51 Investment Philosophy and Strategy 27:08 Podcasting and Public Engagement 28:55 Transparency in Investment Strategies 29:41 Audience Growth and Distribution 31:03 Pitching Ideas and Raising Capital 32:20 Investment Minimums and Investor Relations 33:37 Marketing and Outreach Strategies 36:57 Switching to Jefferies and Other Service Providers 42:57 Strategic Investment from Cannell Capital 51:54 Hiring an Analyst and Future Plans 55:19 Managing Fund Capacity and Performance 58:40 Conclusion and Contact Information

Sam Gaer, CIO of Directional Strategies at Monarq Asset Management and a pioneer in electronic trading systems, shares his insights on outperforming Bitcoin using quantitative strategies. He discusses the implications of recent market volatility and institutional demand for crypto hedge funds. Sam recounts his transition from traditional finance to crypto, emphasizing the importance of relationships in the evolving landscape. He highlights crypto's potential for scalability and offers a comparative analysis of investment strategies between traditional finance and crypto.

James Wang, General Partner at Creative Ventures and author specializing in AI and deep tech investing, dives into the collision of public and private markets. He discusses the challenges of traditional VC metrics and the looming dry powder bubble affecting valuations. Wang offers insights on the future of AI, emphasizing its practical limits and the importance of distinguishing hype from reality. He also critiques fund strategies, urging VCs to focus on meaningful process and team dynamics rather than misleading early performance metrics.

David Stemerman, CEO and co-founder of CenterBook Partners, dives into the challenges facing fundamental long/short equity investing. He highlights the decline in fund launches yet believes in the potential of alpha capture to revitalize this space. David discusses how direct partnerships with single managers can enhance portfolio strategies, while addressing the common criticisms surrounding alpha capture. He also shares insights on how to align manager incentives with allocator needs and the importance of maintaining independence in the investment process.

Corey Hoffstein, CEO and CIO of Newfound Research, shares insights from his journey in investment management. He argues that simply beating the market is no longer enough for success. Instead, he emphasizes the importance of addressing clients' needs and the crucial role of distribution. Corey delves into the differences between quantitative and systematic investing, the impact of market bubbles, and how new strategies like Return Stacked ETFs can enhance client utility. He also highlights the significance of educational content in building advisor relationships.

Anatoly Crachilov, CEO and Co-Founder of Nickel Digital Asset Management, dives into the innovative multi-manager model revolutionizing crypto hedge funds. He shares insights on avoiding a central book to enhance pod performance, discusses the advantages of crypto's unique fractionality for low-cost strategy testing, and explains Nickel's collaborative approach to sourcing external talent. Crachilov also reveals how recent market challenges helped filter strong managers, emphasizing rigorous risk management and the evolution of institutional interest in crypto investments.

Derek Pilecki, the founder of Gator Capital, has an impressive knack for outperforming the S&P 500 by focusing solely on financial sector stocks. He shares insights on why the fears surrounding recent bank credit issues are exaggerated, viewing them more as fraud-driven opportunities rather than economic threats. Derek discusses his strategic approach to managing both a hedge fund and a mutual fund, highlighting how different investor bases influence their operations. He also delves into the importance of thought leadership and building an audience, emphasizing the role of proactive investor outreach.

David Orr, a seasoned long/short equity investor and manager of the Militia Long/Short Equity ETF, dives into the dynamics of blending hedge fund strategies with ETFs. He shares insights on why he launched an ETF alongside a successful hedge fund, discussing liquidity management and compliance challenges. David reveals how ETFs can attract diverse investors and the importance of transparency. He also discusses regulatory hurdles and marketing tactics, while emphasizing the nuanced costs of trading in these structures. A rich conversation for finance enthusiasts!

In this engaging discussion, HF Reflections, an anonymous hedge fund practitioner, delves deep into how analyst compensation shapes hedge fund dynamics. They explore the importance of aligning incentives to promote idea sharing and mitigate mistakes. HF Reflections advocates for stable cash compensation over volatile equity for analysts and emphasizes the need for transparent reward systems. They also highlight the significance of candid career conversations to tailor roles and support entrepreneurial ambitions within teams.

Zach Lindquist and Jeremy Boynton, managing partners at Pure Crypto, dive into the evolving landscape of the crypto market. They discuss how ETFs and treasury companies are reshaping market dynamics and impacting traditional investment flows. The duo shares insights on their selective approach to manager allocation, favoring seasoned operators who have weathered market cycles. They also touch on the implications of regulation changes, their decision to avoid market-neutral strategies, and why understanding real-world crypto use cases is crucial for future success.