Capital Allocators Monthly - April 2022

May 1, 2022 by Ted Seides

“Take the high road. It’s less crowded.”

– Warren Buffett


Premium Sample

Capital Allocators Premium members receive transcripts, Ted’s investment blog, gatherings with show guests, and a weekly email. This month, we’re giving access to Ted’s most recent blog.
The Melvin Dilemma. In the early days of institutional interest in hedge funds, Byron Wien published a paper entitled “The Inherent Instability of Hedge Funds.” He described how strong performance leads to inflows, which can shift the investable opportunity set away from the one in which the manager thrived, and weak performance can lead to concerns over the stability of the organization.

Melvin Capital has experienced both performance extremes and is tasked with figuring out how to move forward. The present dilemma for Melvin, its investors, and the industry is a real-time case study on incentives, option value, and decision making under uncertainty.

Read ‘The Melvin Dilemma’
Subscribe to Premium


Supercharge your Productivity. Khe Hy is launching his 10th cohort to design systems to help identify and implement your most impactful goals. Registration closes May 3rd.

Listen to Khe Hy on Capital Allocators
Learn More!

Check out our Guests Making Waves! As a part of our Premium subscription, we share news about past guests on the show, and it was a heck of a month for our community.

During April, Annie Duke joined First Round Capital, Chris Dixon topped the Forbes Midas list, Homebrew announced Homebrew Forever (without outside capital), Brett Jefferson sold a stake in Hildene to Leucadia, and Ash Williams joined JPM Asset Management. We take no credit for the Capital Allocators boost

Hot Jobs to Share. Send interesting opportunities our way and we’ll share them with the community. For job hunters, our Premium members get an early look at Hot Jobs before the rest of the crowd.

Advocate Aurora Health. The Chicago-based fund overseeing $15 billion in not-for-profit and pension assets is bringing on three Investment Analysts to its 10-person team. Candidates will be considered for senior analyst based on experience.

Investment Analyst
Senior Investment Analyst

Capital Allocators China. An exciting opportunity to grow the Capital Allocators brand abroad! Our Chinese affiliate group is looking for an Entrepreneurial Associate to join their staff.

View Posting


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

1. Decision Education Podcast. Season 3 of the Decision Education podcast from Annie Duke’s Alliance for Decision Education has kicked off with popular Capital Allocators guest Katy Milkman. Listen Here.

2. Dollar Dominance Here to Stay. Sebastian Mallaby takes a contrarian view to the adage that the weaponization of the dollar will end its role as the global reserve currency. Read Here.

3. MIT 15-year letter. Seth Alexander’s thoughtful, infrequent letter shares deep insights into the operations and investing of MITIMCO. Read Here.

4. Yale 2021 Endowment Report. A beautiful ode to the life, career, and impact of David Swensen. Read Here.

5. Streaming Tech Stories. The series on Uber (Super Pumped) and WeWork (WeCrashed) are exceptional tellings of the trials and tribulations of two marquee, venture-backed companies in the sharing economy and their passionate founders. Watch Super Pumped & WeCrashed.


Capital Allocators Episodes

EP.244: Steve Papa – Entrepreneur’s Perspective on Venture (Venture is Eating the Investment World EP. 13)

EP.245: Sebastian Mallaby – The Making of the New Future in Venture (Venture is Eating the Investment World EP.14)

EP.246: Tom Lenehan – Taking the Helm at the Wallace Foundation

EP.247: Louis-Vincent Gave – Macro Consequences of Government Sanctions

Manager Meetings Episode

EP.29: Andrew Milgram – Mid-Market Distressed Investing at Marblegate

A Word from our Sponsors

Janus Henderson Investors. This month from Janus Henderson’s institutional blog, past Manager Meetings guest, Danial Graña, CFA, and his team explain why ESG factors are becoming increasingly important in the analysis of EM companies.

Listen to Daniel Graña on Manager Meetings
Listen to Long-Term Trends in EM

Third Bridge. Third Bridge is a widely used provider of expert interview transcripts whose clients include past Capital Allocators guests across private equity, public equity, and credit. Their coverage is incredibly extensive with over 30,000 company and sector transcripts available on-demand. Each transcript records a 1-hour interview between an unbiased analyst and an industry executive.

Access Free Trial from Third Bridge

Paragon Intel. Paragon Intel has the leading library of in-depth interviews about CEOs and the most sophisticated analytics database on every public company executive. Through a proven process linking executive analysis with company performance, Paragon Intel enables the world’s top asset managers to consistently produce outperforming longs and shorts across dozens of sectors. You can order custom projects or get exclusive access to one set of in-depth interviews and analysis on a CEO of your choice from the link below.

Learn More About Paragon Intel

Canalyst. Clean data. Fundamental models.

Free Trial

Coinbase Institutional. Coinbase is the largest publicly traded crypto company in the world and the trusted bridge to the crypto economy for all institutions. Coinbase Institutional offers clients access to a comprehensive suite of products and services including battle-tested custody, a prime broker, trading tools, analytics, financing, and high-touch support. Access the scale and stability needed to successfully participate in the crypto economy.

Learn More About Coinbase Institutional