Capital Allocators Monthly - May 2022
“Liquidity crises are like dynamite fishing: the explosion wreaks widespread destruction, but it takes a while for the bigger fish to surface.”
– GaveKal Research
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 Problem with ESG. Ted’s latest blog discusses the problematic nature of the label “ESG” and the confusion it creates for investors.
Read Ted’s Latest Here
Announcements
Capital Allocators Job Board. Hot Jobs has become one of the most popular segments of our community newsletters for both employers and job hunters. We created a landing page on the website to access positions still available.
Send new hot job opportunities to us at team@capitalallocators.com!
Matt Spielman’s New Book. Ted’s executive coach and friend of 25 years released his first book earlier this week entitled Inflection Points: How to Work and Live with Purpose. Ted had the honor of writing the foreward to the book.
Listen to Matt Spielman on Capital Allocators
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.
10 East. Ted is an Advisor to 10 East, a New York-based private investment platform that is an affiliate of the family office of former Deputy Executive Managing Member of Davidson Kempner Michael Leffell. 10 East is hiring seasoned investment professionals to join a well-capitalized team focused on reinventing how individuals access high-quality alternative investment opportunities.
Brandywine Group Advisors. Jenny Heller’s adding an Investment Associate to her staff. This person will join the ten-person investment team that manages approximately $12 billion in assets. The Investment Associate will report to a senior-level Investment Managing Director and will have exposure to a broad range of asset classes, including public and private equity and hedge funds, and geographies.
Listen to Jenny Heller on Capital Allocators
HICO Ventures. Ellen Ellison is looking for an investment analyst to join the HICO Investment Team. This person will be instrumental in constructing a green-field endowment model portfolio over the next five years.
Listen to Ellen Ellison on Capital Allocators
Stable Asset Management. The $3 billion backer of alternative asset managers is looking to bring on a Director and Investment Analyst focused on hedge funds.
Listen to Stable Asset Management Founder, Erik Serrano Berntsen, on Capital Allocators
Director- Hedge Funds
Investment Analyst – Hedge Funds
Vanderbilt University. The Office of Investments is looking for someone with a thirst for knowledge, a strong work ethic, a passion for investing, and that is a team-oriented individual. The Investment Manager will focus on the university’s private investment portfolio and will report to the Head of Private Investments.
The New York Community Trust. The $3.5 billion community foundation is bringing on an Investment Director to assist with the oversight of the various investment functions of the trust and their intersection with NYCT’s charitable work.
Reading
Ordered by reading time: tweets first, books last, and blog posts and articles in between.
1. Preparing for a Downturn. Ted remembers the spring day in 2000 when Peter Castleman, the Managing Partner of J.H. Whitney, told the investment team the world changed. He dropped the hatchet on new deals and instructed the investment team to preserve cash at portfolio companies.
Similar warnings abound this week about the public markets from Bill Gurley, venture capital from FirstMark’s Matt Turck, and companies from longtime Amazon and Facebook exec and currently Coatue’s Dan Rose. Read Gurley on Public Markets. Read Rose on Companies. Read Turck on Venture Capital.
2. Private equity saturation. One of this year’s top-of-mind allocator issues is how to manage ever-larger private equity funds coming to market faster. The first signs of saturation are showing up. This tweetstorm from Sami Kaji from Allocate describes how the denominator effect works. Read The Denominator Effect.
3. KKR’s Landmark Sale. KKR exited a garage door manufacturer in its highest returning U.S. deal in 30 years. In the process, it is paying out $360 million to the employees that made it happen. Read KKR’s Windfall for Itself and Employees.
4. Investing in Innovation. In the midst of a massive selloff of high-flying growth stocks, Kai Wu discusses Innovation as a factor and reaches an unexpected conclusion. Read Sparkline Capital Piece.
5. The Business of Baseball. Our National Pastime is a nice diversion from the malaise of markets. Whether Steve Cohen’s data analytics for the Mets, the San Francisco Giants’ uniquely diverse team, or the novel entertainment of the Savannah Bananas, baseball continues to evolve in fascinating ways. Read Data Analytics at Mets. Read Diversity at San Francisco Giants. Watch Savannah Banana Story.
Listening
Capital Allocators Episodes
EP.248: Greg Dowling – Mid-Market Institutional Consulting at FEG
EP.249: Sahil Bloom – Creativity, Investing, and Engineered Serendipity
EP.250: Larry Kochard – From Endowment Professor to OCIO Chief at Makena Capital
EP.251: Billy Libby – Disruptive Venture Funding at Upper90
EP.252: Chris Voss – Listening, Human Nature, and Negotiations
Manager Meetings Episode
EP.30: Steve Drobny – Where the World is Going at Clocktower Group (Interviewed by Paula Volent)
EP.31: John Barber – The Art of Co-Investing at Cohesive Capital
Best of the Rest
Ted Weschler on I Am Home. Ted made a rare public appearance to discuss his experience at Berkshire, the story of how he met Warren Buffet, how he makes investment decisions, and his take on today’s market. May seem a strange fit, but the podcast is from Nebraska Furniture Mart, a longtime Berkshire portfolio company.
Boaz Weinstein on Masters in Business. Hedge fund manager Boaz of Saba Capital discussed some of his great stories and insights in the business with Barry Ritholtz.
Ted on The Investor’s Podcast. Ted recently made his second appearance on TIP to discuss the influence of hedge funds on today’s markets and the impact of ESG policies.
A Word from our Sponsors
Janus Henderson Investors. This month from Janus Henderson’s institutional blog, Portfolio Manager, Jonathan Coleman, CFA, discusses how to navigate the risks that are impacting small-cap growth companies amid current volatility.
Read Market Risks in Small-Cap Growth
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.
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