Other People's Money with Max Wiethe

Former fund manager and short seller Russell Clark has always believed that the key to adding value for investors is to solve for the biggest risks in their portfolios. He also argues it’s the key to successfully raising hedge fund assets. In this interview, Clark discusses the biggest risks he thinks investors face right now, why these risks have him considering relaunching his hedge fund after returning capital in 2021, and why if he does relaunch, he’s inverting the long short hedge fund model.You can read Russell's Substack here: https://www.russell-clark.comFollow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRFollow Russell Clark on Twitter: https://x.com/rampagingrussFollow Max Wiethe on Twitter: https://x.com/maxwiethe

Benn Eifert, Managing Partner of QVR Advisors, shares insights from his experience managing $2 billion in assets. He reveals that trading skills alone don't cut it for hedge fund success, emphasizing the importance of operational and interpersonal skills. Eifert discusses the rise of pod shops for attracting talent and assets, as well as the increasing trend of separately managed accounts for sophisticated investors. He also dives into the growing use of derivative strategies in public funds, highlighting their complexities and risks for retail investors.

Kyle Mowery, Portfolio Manager and Founder of Grizzly Rock Capital, dives into the challenges facing hedge fund managers in today’s volatile market. He discusses how small/mid-cap value investors must adapt their strategies to keep pace with changing investor demands. Mowery emphasizes the importance of clear communication and setting realistic expectations. He also shares insights on the advantages of collaborating within a pod versus launching solo and outlines what he would do differently if starting Grizzly Rock today, highlighting the need for adaptability.

Eric Crittenden, CIO and founder of Stand Point Asset Management, shares insights on navigating the changing investment landscape. He discusses how his mutual fund achieved over $1 billion in assets under management in just five years amidst the prevalence of ETFs. Crittenden highlights the importance of an all-weather investment approach and diversification strategies for weathering market volatility. He emphasizes the value of global equity exposure and educating clients about alternative investments, challenging common biases in the industry.

Having raised over $450m in less than 6 months, Warren Pies, Founder of 3Fourteen Research and Portfolio Manager of $FCTE, has had one of the most successful independent ETF launches of all time. Despite the seemingly overnight success of his fund management business, the real story is about the steady growth of his research business that feeds into everything they do.. He explains how his research business has become a pipeline of investor interest in his ETF business and how research relationships flip the traditional client interaction on its head. He also discusses why he chose to focus on setting good expectations with reasonable clients rather than playing the flashy retail newsletter game.Follow Other People’s Money on: Apple Podcast https://bit.ly/4e7QJ1M Spotify https://bit.ly/3Yhaazi YouTube https://bit.ly/3C63VXR Follow Warren Pies on Twitter: https://x.com/WarrenPiesFollow Max Wiethe on Twitter: https://x.com/maxwiethe

Noel Smith, founder of Convex Asset Management has spent most of his career outside of the world of managing other people’s money. Instead, he traded his own capital as a proprietary trader. Prop traders are famed for generating staggering rates of return, but because they have no interest in raising money, their secrets and strategies generally remain behind closed doors. However, he has decided to bring these strategies to the hedge fund world at Convex Asset Management and while they don’t scale to produce the same level of returns their lack of availability outside the prop world gives him differentiation in the product marketplace. In this interview, Smith explains why props can make so much more money, how much harder capital raising is than he anticipated, and why he ranks relationships and likability higher than performance when it comes to hedge fund success.Follow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRFollow Noel Smith on Twitter: https://x.com/NoelConvexFollow Max Wiethe on Twitter: https://x.com/maxwietheTimestamps:00:00 Intro01:16 What is Prop Trading?10:51 Moving to the Hedge Fund World16:36 The Hedge Fund Popularity Contest23:04 Volatility Trading Strategies27:27 Extracting Information From The Options Market32:09 Scaling Prop Strategies34:44 Alpha Degradation39:31 Being Good Is Not Enough48:03 Dealing With Extreme Performance53:28 Long-term Vision For Convex Asset Management

Jamie Carter, Partner and Managing Director at Variis Partners has spent much of his career focused on the world of long-only emerging-market investment boutiques. In this interview with Max Wiethe, Carter discusses the huge differences between building a long only business and a hedge fund business, why launching fund vehicles out of the UK has become more difficult, the differences in raising capital in the US, UK, and Europe, and why he thinks emerging markets are the last hold outs for fundamental active managers. He also explains why EM investors and allocators are holding their collective breath waiting to see how the Trump administration’s policies will impact global markets.Follow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRYou can learn more about Variis Partners on their website: https://www.variispartners.co.ukFollow Max Wiethe on Twitter: https://x.com/maxwiethe

Since Aristides Capital’s inception in August 2008, Chris Brown has returned over 1,000% for their investors with a stunning 16-year track record of no losing years. In this interview with Max Wiethe, Brown explains how they’ve been able to sustain these results and grow their business to over $300m in AUM all while operating far from the typical financial centers where hedge funds cluster. They discuss how accumulating a plethora of lower capacity strategies, hiring and working with “well intentioned nerds,” and maintaining rigorous processes for post-hoc analysis and feedback have been some of the keys to their investment success. They also touch on asset gathering from both HNW and institutional investors, attracting talent, and the reality that for small funds being in the top quartile or even decile of performance is a near necessity for reaching critical mass.Follow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRFollow Chris Brown on Twitter: https://x.com/MidwestHedgieFollow Max Wiethe on Twitter: https://x.com/maxwiethe

Ask anyone and they will tell you it has never been harder to start a hedge fund. That’s why so many of the most successful launches of late have been funds emerging from a prior firm with the backing of the big boss, otherwise known as spinouts. Julian Robertson’s Tiger Cubs are the perhaps most famous spinouts, but it is still an extremely popular trend today. Farid Guindo, CIO and founder of Drill Capital Management is taking advantage of these dynamics to launch his new fund with the backing of his mentor and former boss at Bornite Capital, Dan Dreyfus. In this interview with Max Wiethe, Guindo discusses the ins and outs of fund spinouts, the importance of transparency and relationship building with bosses and mentors, and how his experience working at Tiger Cubs and other spinouts solidified his belief that this was the right path for Drill Capital after deciding it was best to be a separate vehicle outside of the Bornite umbrella.Follow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRFollow Farid Guindo on Twitter: https://x.com/FaridGuindoFollow Max Wiethe on Twitter: https://x.com/maxwiethe

Dan Rasmussen has built his firm Verdad Capital into a billion-dollar asset manager on the back of one core activity, producing high quality research. Since Verdad’s inception in 2014, they have produced almost 500 pieces of research that they publish on their website weekly and distribute both on Twitter and to their large email list of readers. This research serves two functions. It’s both the backbone of the strategies employed at this highly quantitative firm, and a point of connection with existing and potential investors. In this interview with Max Wiethe, Rasmussen discusses how he’s used research to showcase his authentic self and build an audience that provides enumerable benefits. They also discuss the compliance process for publishing research, how he has built out his team and Verdad’s internship program, and why he takes a more SaaS approach to product market fit.Follow Other People’s Money on:Apple Podcast https://bit.ly/4e7QJ1MSpotify https://bit.ly/3YhaaziYouTube https://bit.ly/3C63VXRFollow Dan Rasmussen on Twitter: https://x.com/verdadcapFollow Max Wiethe on Twitter: https://x.com/maxwietheTimestamps:00:00 Intro03:43 The Value of Research and Verdad’s First Big Thesis10:27 The SaaS Approach Product Market Fit20:26 Investing in Human Capital24:21 The Research and Publishing Process28:41 Research as Brand Building33:06 Compliance and Misconceptions About Public Statements41:35 Authenticity and Investor Archetypes46:07 Making Mistakes49:45 Being Early on PE