Capital Allocators – Inside the Institutional Investment Industry

Patrick O’Shaughnessy, CEO of O’Shaughnessy Asset Management and host of the Invest Like the Best podcast, shares his journey from a young enthusiast to a leader in quantitative investing. He discusses the four core quantitative factors that drive his investment strategies and explores the role of machine learning in research. Patrick reveals insights from his podcasting experience, shedding light on how interviewing shapes his investment philosophy. He also emphasizes the importance of learning from failures in quantitative research and the intricate dynamics of stock shorting.

Khe Hy, former Managing Director at BlackRock and now a blogger and speaker, discusses his radical shift from Wall Street to pursuing purpose. He reflects on the pressures of his early finance career and how becoming a parent made him reevaluate success. Khe shares insights on the value of asking 'Why?', the implications of sudden wealth, and the marginal utility of money. He emphasizes the importance of emotional resilience, authenticity, and finding joy while balancing personal passions with responsibilities.

Tom DeLong, a Harvard Business School professor and expert on organizational behavior, dives into authentic leadership and the often-overlooked 'soft skills' essential in asset management. He discusses the complex interplay between personal identity and work life, emphasizing the need for transparency and mentorship. DeLong shares insights on the emotional responses that can derail high achievers and the importance of fostering genuine relationships. He reflects on personal growth, emphasizing kindness and self-acceptance as core components of effective leadership.

David "Bull" Gurfein, a decorated Marine Corps combat veteran and business strategist, shares fascinating insights from his military background. He discusses how leadership principles from the battlefield translate to the corporate world, emphasizing accountability and effective communication. Bull recounts personal stories from his experiences in combat and his decision to re-enlist post-9/11, highlighting the personal sacrifices of service. He also reflects on his run for Congress, illustrating the resilience required in both politics and business.

Tim Recker, CIO of the James Irvine Foundation, has an impressive background in private equity and alternative investments. He discusses his transition from GE to various institutional roles, shedding light on the importance of governance and managing concentrated portfolios. Tim shares insights on co-investment strategies, the balance of flexibility and team structure, and the significance of due diligence. He also delves into hedge funds, the role of real estate and fixed income in portfolios, and strategies to prepare for market downturns.

Michael Mauboussin, an esteemed investment strategist at Blue Mountain Capital, dives deep into his research on investment processes versus outcomes. He emphasizes the importance of understanding investor edges, explores psychological biases affecting market strategies, and discusses decision-making dynamics in both public and private markets. The conversation also touches on the intriguing relationship between data analytics and sports like lacrosse, highlighting how analytics can transform both finance and athletics. Prepare for insights that could reshape your investment approach!

Michael Mauboussin, Director of Research at BlueMountain Capital and adjunct professor at Columbia Business School, shares his expertise in decision-making and team dynamics. He discusses the paradox of skill in investing and how cognitive biases affect market decisions. The conversation touches on the interplay of data analysis in sports and finance, and the role of cognitive diversity in teams. Michael also explores the implications of market volatility and the exciting future of research at the Santa Fe Institute, emphasizing the importance of continuous learning.

Jon Hirtle, Executive Chairman at Hirtle, Callaghan & Co., is the pioneer behind the OCIO model in institutional investing. He shares leadership lessons from his Marine Corps days and Goldman Sachs, emphasizing integrity and teamwork. The conversation dives into dynamic asset allocation and risk management strategies, with insights on navigating venture capital complexities. Hirtle also discusses today's public debt landscape, advocating for equities and private credit while underscoring governance in investment decisions and the importance of customized client strategies.

In this engaging conversation, Matt Levine, a talented writer behind Bloomberg's daily financial newsletter Money Stuff, shares his unique journey from law school to journalism. He dives into the complexities of securities fraud and stock buybacks, providing a witty yet insightful critique of corporate practices. Levine also unpacks the credit default swap market and discusses the impact of index funds on corporate governance. With humor and depth, he emphasizes the importance of pursuing passion over prestige in career choices.

Michael Mervosh, Executive Director of the Hero’s Journey Foundation, shares his unique journey of personal growth and self-discovery. He discusses the importance of experiential learning through the framework of Joseph Campbell’s hero’s journey, emphasizing emotional growth and community support. Mervosh also delves into the complex relationship between success and fulfillment, critiquing perfectionism and discussing the power of shared experiences. With anecdotes from his Pittsburgh roots, he sheds light on navigating life's challenges and embracing authenticity.