Capital Allocators Monthly - September 2020

October 1, 2020 by Ted Seides

Hello Fellow Listeners,

We have a lot cooking this fall. Our premium members can access a new premium podcast feed that is advertising-free and has a set of additional closing questions tacked on at the end of each show.
Sign up for a premium account to catch every nugget.

Premium members will get an invitation to our next virtual gathering, an Ask Me Anything with Morgan Housel, on October 29th at 11:30am.

Announcements and Gratitudes

* Big thanks to our new sponsors
iConnections is a new anchor sponsor on the show. It is the company behind the technology at the wildly successful Funds4Food virtual cap intro event and i3, an upcoming cap intro event focused on ESG, Diversity and Inclusion. The robust technology platform is available for managers, allocators and service providers to use for their own events. You’ll be seeing more of iConnections as the backbone of a number of virtual industry events this fall.

We’ve seen a number of companies endeavor to warehouse manager due diligence information over the years. None to my knowledge has made more progress than DiligenceVault. If you send questionnaires to investment managers at any stage of your process, DiligenceVault is an electronic solution created with you and your managers in mind. Check it out for free this fall.

And an equally big thanks to our continuing anchor sponsor

Northern Trust Front Office Solutions brings high-tech and high-touch data management solutions for the front and middle office to help asset allocators efficiently evaluate their portfolios, accelerate their insights and mitigate their operational risk.

Reading (Ordered by reading time: tweets first, books last, and blog posts and articles in between) 

1. Journal of Rearview Portfolio Management. An anonymous allocator started this twitter account to shine a light on examples of some dubious past proclamations. I do not know who is behind these journal covers (I tried), but I can share from some messages that he or she is experienced, smart, and very clever. Use twitter messenger to share your favorites.

2. The death of the small-cap effect. John Authers at Bloomberg summarizes new research casting doubt on the validity of the long-held belief in the superiority of small-cap stocks over the long-term. He cites There Is No Size Effect by Cliff Asness, a new piece incorporating Cliff’s stereotypical wit and quantitative analysis.

3. Noah Feldman on the Supreme Court nomination.  Noah Feldman is a brilliant constitutional law scholar at Harvard and a devout liberal. In this piece, he describes Amy Coney Barrett’s impeccable qualifications to be a Supreme Court justice, despite his diametrically opposed judicial philosophy and opinions. We don’t see this type of honest response these days.

4. Why Bryson Dechambeau Wins. Writing guru David Perell describes how recent U.S. Open golf champ Dechambeau applies Moneyball principles to golf.

5. 10 1/2 Lessons from Paul Marshall. Legendary hedge fund manager Paul Marshall put together this short treatise on what it takes to be a successful active manager in public markets.

6. How to Decide, Annie Duke.  After a frustrating publishing misprint in the first few thousand copies that delayed its release, Annie’s follow-up to Thinking in Bets is once again best-seller material.


Capital Allocators

Episode 155: Morgan Housel – The Psychology of Money. Morgan’s first book already hit the WSJ best-seller list. The podcast gives a little taste of a fantastic read.

Episode 156: Annie Duke – How to Decide. Annie brings her elegant mind back on the show to talk about lessons from her new book.

Episode 157: Paul Marshall – 10 ½ Lessons from 23 years at Marshall Wace.  Paul built London’s largest hedge fund alongside Ian Wace and is a believer in active management. He discusses why.

Episode 158: Luke Ellis and Mario Therrien – Best Practices in Alternatives. Luke and Mario serve as Deputy Chair and Chair of the Standards Board of Alternative Investments (SBAI), the leading industry consortium bringing endorsing best practices.  They discuss the founding and evolution of the SBAI and the current state of hedge funds.

Best of the Rest

Rory Sutherland on Infinite Loops and Invest Like the Best.  Rory is the Vice-Chair of Ogilvy Group and a master storyteller about human nature and marketing.

Will Danoff on Masters in Business. Barry interviews the longtime head of the Fidelity Contrafund.

Have a good one,