Other People's Money with Max Wiethe

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.

David Orr, CIO and founder of Militia Capital, shares insights on his hedge fund's impressive growth from $3M to over $160M since 2021. He emphasizes the importance of risk management and uncorrelated investment strategies, challenging common practices among hedge fund managers. Orr critiques value trap investors and discusses his unique approach to compliance and transparency. He also highlights the impact of market dynamics on trading strategies and the significance of effective collaboration among portfolio managers for finding innovative investment opportunities.

Cullen Rose and Raj Shah, co-founders of Stoic Point Capital Management, dive into their journey of capitalizing on the SPAC boom and adapting their investment strategies. They discuss the significant impact of AI on their research methods and cost structures, revealing how technology reshapes finance. The pair also highlight the complexities of maintaining investor relations amidst evolving market dynamics and the shift towards small-cap investments, all while emphasizing the need for transparency and adaptability in a competitive hedge fund landscape.

Join Brett Caughran, founder of the buyside training academy Fundamental Edge, and David Plon, CEO of Portrait Analytics, as they dissect the AI revolution in the investment world. Discover how AI is transforming decision-making and influencing the roles of portfolio managers and analysts. They explore the current state of AI adoption among hedge funds and the importance of clear communication when using AI tools. With insights on the challenges and opportunities AI presents, this conversation is vital for anyone in finance.

In this insightful discussion, HF Reflections—an anonymous expert from the FinTwit community—shares his transformative journey from analyst to hedge fund founder. He highlights the importance of balancing passion with compliance in finance and offers valuable lessons on personal branding. The conversation touches on the challenges of AI in investment research, as well as the intricate dynamics of launching a hedge fund. HF emphasizes the significance of perseverance, authenticity, and building investor relationships in a competitive landscape.

Tor Svelland, CIO and Founder of Svelland Capital, shares insights from his successful journey in commodities trading, having achieved over 18.5% annualized returns since 2017. He discusses the thrilling current landscape for commodities, fueled by new market entrants and structural undersupply. Svelland highlights the challenges of ESG ratings, the impact of geopolitical factors, and the importance of understanding global supply chain shifts. He emphasizes the need for seasoned traders and offers advice for emerging commodities professionals.

Donald Zilkha, founder of Zilkha Investments joins Other People’s Money to discuss how his deep-rooted DNA in banking and deal making has evolved into an investment strategy focused on deep research and engagement with management to affect change without upsetting the apple cart. He discusses how this strategy has evolved from single name SPVs to the commingled strategy he has today, case studies like Nathan’s Famous Hot Dogs, and why this classical style resonates with investors. 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 Intro 00:34 The Birth of Modern Banking in the Middle East 10:27 Evolution from Venture, to SPVs, to Drawdown, to Vanilla Equity 19:09 Engagement vs. Activism 27:17 Nathan's Famous Hot Dogs Case Study 33:05 Take Private Opportunities 35:55 Investing in a "Classical" Style 38:43 Talking About Process Instead of Positions 45:02 Value Investing in Tech and Old-Line Businesses 50:05 Team Continuity & Incentives 54:18 Marketing After 10+ Years

David Steinberg, founder and CIO of Marlowe Partners joins Other People’s Money to discuss why he believes the operational and capital raising side of the investment business is the most important factor in determining success. He also discusses how he is navigating the capital raising process with a focus on weeding out investors who are not a fit for his concentrated long-term investing style, how that long-term style affects his ability to use AI in the research process, and why it is important not to be too innovative with your investment terms. David would also like to highlight the importance of high quality service providers and has shared three service providers he would highly recommend to other investment professionals. For accounting services David uses: https://rsmus.com For outsourced compliance services David uses: https://www.salusgrc.com For legal services David uses: https://www.akingump.com/en Follow David on Twitter: https://x.com/PeterLakeSounds 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 00:00 Intro 00:30 The Most Important Aspect of Investing 10:16 The Market for Concentrated Investing 13:47 Staying in the Game 17:45 Non-Standard Structures Are a Risk 19:41 New Structures for Individual Investors 27:11 Communicating Investing Process 34:28 Using AI to Cut Investment Research Costs 49:04 The Mission of $1B to $100B