Capital Allocators – Inside the Institutional Investment Industry

Daniel Mahr, head of the quantitative equity investing group at Federated Hermes, shares insights from his extensive career. He discusses his journey from flipping IPOs to developing sophisticated decision tree models for stock selection. Mahr explains the balance between analytical rigor and human judgment, emphasizing a 'glass box' approach to transparency. He also explores challenges like overfitting and the impact of market changes on strategies, highlighting how quirky factors influence outcomes. Mahr's passion for evolving models fuels continuous improvement in the unpredictable world of investing.

David Lyon, Managing Director at Neuberger Berman, shares his extensive journey through finance, from being an arbitrage analyst to leading hybrid capital solutions. He emphasizes the rising need for flexible financing in private equity, detailing his insights on liquidity challenges and competitive dynamics. Lyon explores the evolution of private credit, the importance of relationship-building in sourcing deals, and his philosophy on managing risks. His candid views on investor expectations, growth versus cost-cutting appetites, and the significance of team dynamics offer a refreshing perspective on the industry.

Sydney Sweeney, an actress known for her compelling roles and public engagements, dives into the world of interviewing techniques with Ted. They explore the importance of open-ended questions and how they encourage depth in conversations. Ted critiques a viral interview featuring Sweeney, highlighting common mistakes like closed prompts and lengthy questions. He emphasizes the power of pauses in communication and redefines interview intent, revealing that sometimes, composure becomes the highlight of the moment.

Jay Ripley, Head of Investments at Global Endowment Management (GEM), shares insights from his journey in investment management. He delves into the nuances of selecting emerging managers across various fund types, highlighting the shift from GP to LP roles. Jay discusses the importance of assessing spinoff motivations, the competitive dynamics of independent sponsors, and the role of network access in venture capital. He also emphasizes the significance of disciplined fund sizing and the intersection of AI and sourcing in identifying future talents.

In this engaging discussion, Matt Bank, the Deputy Chief Investment Officer at GEM, shares insights from managing $12 billion in institutional investments. He dives into the importance of risk tolerance in portfolio construction, detailing dimensions like drawdown and liquidity risk. Matt explains GEM's unique governance model rooted in its Duke endowment heritage. He also discusses the evolution of the OCIO industry, the role of hedge funds, and emerging trends in manager selection. Plus, catch his personal anecdotes on life lessons and hobbies!

Dave Thornton, Co-founder and CEO of Vested, shares insights from his unique journey bridging entrepreneurship and finance. He discusses the misunderstood dynamics of employee stock options and the critical need for liquidity among startup employees. Vested's innovative data-driven selection model targets the top 20% of venture-backed startups by leveraging proprietary signals and robust backtesting. Thornton also delves into how educational outreach and proactive sourcing can empower employees, all while navigating the complexities of funding and portfolio construction in the venture space.

Jeff Aronson, Co-founder of Centerbridge Partners, shares insights from his four-decade career in investing. He discusses his journey from law school to founding Centerbridge and the firm's unique approach, blending private equity and credit with sector-focused teams. Aronson emphasizes the importance of legal skills in credit investing, adapting strategies in changing markets, and recognizing late-cycle warning signs. He also touches on collaborating with insurers, the challenge of alternatives becoming mainstream, and his passion for mentoring the next generation.

Mike Trigg and Sanjay Ayer are key figures at WCM Investment Management, influential in shaping its growth and culture. They delve into how WCM adapted after a challenging 2022, emphasizing the importance of resilience and trust. Topics include integrating AI to enhance research, redefining investment strategies, and expanding into private markets. They also share insights on fostering a strong company culture and their commitment to innovation while navigating changes. This dynamic conversation reveals their vision for the future and the drive to continuously improve.

Paul Black, a key leader at WCM Investment Management, and Mike Trigg, a senior investment professional, share insights on transforming a struggling firm into a $100 billion investment powerhouse. They discuss the importance of culture and unconventional hiring practices, revealing how openness and trust fuel innovation. Paul recounts overcoming significant losses and embracing change, while Mike emphasizes the need for candid communication and fostering a truthful environment. Together, they highlight the role of storytelling in integrating new team members into their unique culture.

Join Paul Black, Co-CEO of WCM Investment Management, as he discusses his unique journey from a $200 million firm to managing multibillion-dollar portfolios. He dives into the art of growth investing, defining great companies by their widening moats and culture, emphasizing the significance of optimism versus traditional value investing. Paul shares lessons from early mistakes and the pivotal shift in WCM's culture, driving home the importance of gratitude and fun in a successful investment environment.