Capital Allocators – Inside the Institutional Investment Industry

Gary Klein, a cognitive psychologist and founder of Shadow Box, is joined by finance experts Paul Johnson and Paul Sonkin. They delve into the Pre-Mortem method of risk assessment, highlighting its origins in the Air Force and its significance in avoiding investment failures. The trio discusses enhancing decision-making through tools like Shadow Box training and Cognitive After-Action Reviews. They critique common risk mitigation techniques and emphasize the necessity of fostering a candid dialogue in teams to improve outcomes and reduce overconfidence.

In this engaging conversation, Paul Johnson, a seasoned investor and professor, joins fellow financial expert Paul Sonkin, a portfolio manager and analyst, to discuss their groundbreaking book. They delve into the art of pitching investment ideas and the pivotal role of creativity in finance. The duo highlights the importance of understanding intrinsic value, competitive advantages, and effective communication between analysts and portfolio managers. Their insights into market dynamics and the wisdom of crowds offer valuable lessons for both novice and seasoned investors.

Michael Schwimer, CEO of Big League Advance (BLA) and JAMBOS, dives into the world of sports betting driven by analytics. He discusses the innovative strategies behind BLA's growth and introduces JAMBOS, emphasizing transparency and accountability in betting. The conversation explores the impact of sports analytics on predicting game outcomes and the evolving landscape of sports entertainment. Additionally, he shares insights into the growing use of data in sports decision-making and its influence on future broadcasting trends.

Michael Schwimer, CEO of Big League Advance and former MLB pitcher, discusses his innovative approach to investing in minor league baseball players in exchange for future earnings. He shares insights from his own career challenges and the harsh realities faced by minor leaguers. The conversation dives into his love for sabermetrics and how data analytics informs decisions on player investments and injury assessments. Michael also offers his predictions for the upcoming World Series, showcasing the intersection of sports and finance.

Matt Whineray, CEO of the New Zealand Superannuation Fund, discusses leading one of the top global investment allocators managing NZ$42 billion. He shares insights into the fund’s innovative investment philosophy, emphasizing risk management and ESG integration. The conversation explores dynamic investment strategies, including a unique 80-20 assets allocation, and the importance of active management in New Zealand's equity market. Whineray also touches on personal interests like snowboarding, illustrating the balance between professional and personal growth.

Scott Kupor, managing partner at Andreessen Horowitz, shares insights from his journey in venture capital. He discusses the unique founder-centric investment model of a16z, emphasizing the importance of nurturing portfolio companies. Kupor also covers the challenges of transitioning from finance to operations and how the venture landscape is evolving. He highlights new frontiers in venture capital, especially at the intersection of tech and life sciences, and critiques common pitfalls in investing while advocating for deeper, authentic connections in the industry.

Eric Ries, founder and CEO of LTSE and creator of the Lean Startup methodology, dives into his entrepreneurial journey starting with a failed venture during the dot-com bubble. He discusses how customer feedback shaped his principles of adaptability in business. The talk reveals insights into the Long-Term Stock Exchange, stressing the importance of sustainable stakeholder relationships and innovative IPO strategies. Ries also reflects on historical lessons in frugality and emotional control that continue to influence today's economic strategies.

David Druley, CEO of Cambridge Associates, brings 25 years of investment experience to the table. He shares insights from his journey in value investing and the evolution of Cambridge Associates. The conversation covers key strategies for generating strong investment returns, the importance of manager selection, and the role of innovation in investment philosophy. David also discusses the challenges posed by passive investing and the impact of AI on the industry, while emphasizing the necessity of transparency and client trust in successful investment management.

Margaret Chen, Head of CA Capital Management at Cambridge Associates, shares her two decades of experience in the investment world. She discusses her transition from management consulting to investment leadership, emphasizing the unique proposition of OCIOs. Margaret highlights the significance of custom strategies in asset allocation and balancing client needs with innovation. She also reflects on the evolution of consulting’s role in investment management and the importance of foundational experiences from her immigrant roots.

Michael Novogratz, CEO of Galaxy Digital, shares his journey from Goldman Sachs trader to a key player in the crypto world. He discusses his adventurous career, marked by fortunes made and lost in Bitcoin. Novogratz talks about the evolution of cryptocurrency, the challenges of institutional adoption, and the burgeoning use cases in privacy and gaming. He also highlights the importance of resilience, his commitment to justice reform, and unique insights gained during his tumultuous trading experiences.