Capital Allocators – Inside the Institutional Investment Industry

The movement of private wealth allocations to alternatives is one of the biggest questions impacting the future of private markets. Our Private Wealth miniseries shared perspectives from allocators and managers on the space. Since then, an Executive Order opened the door for 401(k) plans to adopt alternatives. I wrote, in a recent Musings for our Premium members, that private market allocations in retirement plans may be a big deal down the road, but there’s no need to worry about a flood of capital hitting the private markets any time soon. To understand why, I asked Eric Mogelof to come back on the podcast and explain how capital flows in the retirement markets. Eric is the head of Global Client Solutions at KKR and joined me on the Private Wealth miniseries. In this hot take, Eric breaks down the retirement market across defined benefit, defined contribution, and IRA plans, the importance of target date funds to 401(k)s, and the decision making process required for these various structures to adopt alternatives. From our sponsor, Morningstar Embrace the global language of investment data Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

My guest on today’s show is Matt Spielman, Founder and CEO of Inflection Point Partners, an executive coaching firm that works with leaders primarily in investment organizations. Matt first joined me on the show four years ago, where we discussed his path into executive coaching, inflection points in his career, and his GPS system that aligns an individual’s goals and helps execute. Our conversation this time builds on that foundation with what Matt has learned since. We explore the challenges of leadership at the top, the personality dynamics that shape investment organizations, and the essential role of feedback, empathy, and appreciation in managing people. We discuss the evolution of Inflection Point from one-on-one coaching to firmwide leadership systems, and the role artificial intelligence may play in scaling his work going forward. From our sponsor, Morningstar Embrace the global language of investment data Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

Matt Spielman is the Founder and CEO of Inflection Point Partners an executive coaching practice he launched after a twenty-year career in the financial and corporate world. Matt partners with high-performing executives and their teams in asset management, media, professional sports, and other industries, and last year was named one of the leading coaches in asset management by Institutional Investor. Our conversation covers Matt’s background and path to executive coaching, inflection points in his own career, and his coaching philosophy. We then turn to frameworks for setting goals, executing on them, aligning interests across an organization, and dealing with inevitable setbacks. We close with Matt’s thoughts on turnover in an asset management firms and advice for senior leaders. I should note that Matt was a classmate of mine from business school and is also my executive coach. Learn More Subscribe: Apple | Spotify | Google Follow Ted on Twitter at @tseides or LinkedIn Subscribe Monthly Mailing List Read the Transcript

Mason Morfit and Rob Hale are the co-CEOs of ValueAct Capital, which manages $11 billion in public equities focused on the US and Japan. Since its founding in 2000, ValueAct has charted a distinctive path in activist investing, eschewing confrontation and publicity in favor of quiet, meaningful partnerships with management teams. But they agreed to join me to reflect as they celebrate the firm’s 25th anniversary this year. Mason helped launch the firm and has driven many of its successful investments, including the turnaround of Microsoft in 2013. Rob joined fifteen years ago and leads the firm’s investing in Japan. He joined the Board of Olympus in 2019 and helped usher in a new era of engagement between global investors and Japanese companies. Our conversation covers their paths to ValueAct, the firm’s history and evolution, and the challenges that great companies face. We cover their philosophy of working with management teams, investment process, governance, long-term value creation, lessons from mistakes, application of their approach to Japan, and the adoption of their principles internally at ValueAct. From our sponsor, Morningstar Embrace the global language of investment data Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

Jack Kokko is co-founder and CEO of AlphaSense, the market intelligence platform often described as “Google for finance.” The company’s 6,000 customers canvass 90% of the top asset management firms, all the world’s leading investment banks, and over half of the Fortune 500 companies. Our conversation covers Jack’s early frustration as an investment banking analyst that sparked the idea for AlphaSense, the evolution of the business from a simple semantic search tool to an AI-powered research platform, the promise and perils of LLMs in high-stakes decision-making, and Jack’s vision of an always-on intelligence machine that will transform how business gets done. Jack offers a fascinating glimpse at the intersection of technology, data, and investment decision-making. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

Herb Wagner is the Managing Partner of Finepoint Capital, a $4 billion opportunistic value hedge fund he founded eleven years ago after spending fourteen years at Baupost and two at Appaloosa under legendary investors Seth Klarman and David Tepper, respectively. Our conversation starts with Herb’s hard work as a youth in small-town Ohio, his fortuitous early entry into distressed investing and hedge funds, and mentors who shaped his investing career. We then dive into the DNA that carried Herb forward to Finepoint, including the evolution of value investing, sourcing miles wide, conducting research and diligence miles deep, constructing portfolios, and current opportunities in Japan and reinsurance. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

Adrian Meli is the co-CIO of Eagle Capital Management, a 36-year-old firm that manages $34 billion using a style-agnostic, long-only strategy. Adrian joined Eagle in 2008 from the hedge fund world and has helped build a team almost entirely comprised of analysts with similar DNA. Our conversation covers Adrian’s early passion for finding value, path to investing, and transition from the hedge fund world to long-only at Eagle. We discuss Adrian’s rationale for moving towards long-only, building a team of similar-minded analysts, finding a right to win, seeing around corners to identify outliers and research non-consensus ideas, and constructing a portfolio. Along the way, we discuss overcoming the challenges of active management, the growing inefficiencies in the public markets, and exciting current and potentially future opportunities. From our sponsor, Morningstar Embrace the global language of investment data Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

Once in a while, I take a turn on the other side of the microphone and share it on our feed when I’ve said something different from what I have in the past. I recently appeared on Michael Sidgmore’s Alt Goes Mainstream podcast, which focuses on the intersection of private markets and wealth management. Michael was the first guest on our Private Wealth mini-series and asked me to share my lessons from that mini-series on AGM when it concluded. Our conversation covers David Swensen’s lasting legacy, perspectives on private market interest from the wealth channel, parallels of private equity and the hedge fund industry, behavioral biases in manager selection, and the power of content in asset management. Please enjoy my turn on the other side of the microphone, with Michael Sidgmore on the AGM podcast. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠⁠https://thepodcastconsultant.com⁠⁠)

This week’s final Summer Series is a mega two-fer, Raphael Arndt from Australia Future Fund and Geoffrey Rubin from CPPIB. We packaged these two leading sovereign wealth funds together to compare their application of the Total Portfolio Approach – with Australia focused on partnerships with external managers and CPPIB on a hybrid of internal and external management. Both have been thought leaders on modern portfolio management and have experienced great success with their innovative approaches. Please enjoy my conversations with Raphael Arndt from 2018 and Geoffrey Rubin from 2022. Geoffrey Rubin EP. 280 – November 14, 2022 Raphael Arndt EP. 70 – September 23, 2018 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s final Summer Series is a mega two-fer, Raphael Arndt from Australia Future Fund and Geoffrey Rubin from CPPIB. We packaged these two leading sovereign wealth funds together to compare their application of the Total Portfolio Approach – with Australia focused on partnerships with external managers and CPPIB on a hybrid of internal and external management. Both have been thought leaders on modern portfolio management and have experienced great success with their innovative approaches. Please enjoy my conversations with Raphael Arndt from 2018 and Geoffrey Rubin from 2022. Geoffrey Rubin EP. 280 – November 14, 2022 Raphael Arndt EP. 70 – September 23, 2018 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is a multi-family office twofer, with Stan Miranda, co-founder and Chairman Emeritus of Partners Capital and Jenny Heller from Brandywine. Both firms started as multi-family offices that have evolved in different ways. Partners Capital has grown and scaled as a leading OCIO, while Brandywine has remained a boutique with a fixed set of family clients. Please enjoy my conversations with Stan Miranda from 2023 and Jenny Heller from episode 7 back in 2017 and a follow-up in 2021. Jenny Heller EP. 7 – May 17, 2017 Jenny Heller EP. 211 – August 29, 2021 Stan Miranda EP. 334 – August 21, 2023 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is a multi-family office twofer, with Stan Miranda, co-founder and Chairman Emeritus of Partners Capital and Jenny Heller from Brandywine. Both firms started as multi-family offices that have evolved in different ways. Partners Capital has grown and scaled as a leading OCIO, while Brandywine has remained a boutique with a fixed set of family clients. Please enjoy my conversations with Stan Miranda from 2023 and Jenny Heller from episode 7 back in 2017 and a follow-up in 2021. Jenny Heller EP. 7 – May 17, 2017 Jenny Heller EP. 211 – August 29, 2021 Stan Miranda EP. 334 – August 21, 2023 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is a multi-family office twofer, with Stan Miranda, co-founder and Chairman Emeritus of Partners Capital and Jenny Heller from Brandywine. Both firms started as multi-family offices that have evolved in different ways. Partners Capital has grown and scaled as a leading OCIO, while Brandywine has remained a boutique with a fixed set of family clients. Please enjoy my conversations with Stan Miranda from 2023 and Jenny Heller from episode 7 back in 2017 and a follow-up in 2021. Jenny Heller EP. 7 – May 17, 2017 Jenny Heller EP. 211 – August 29, 2021 Stan Miranda EP. 334 – August 21, 2023 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is an asset class twofer covering hedge funds and private equity. The first is a hedge fund panel comprised of Dan Fagan from GIC of Singapore, Craig Bergstrom from Corbin Capital Partners, and Adam Blitz from Evanston Capital. The second is with Mario Giannini, Executive Co-Chairman of Hamilton Lane. Both offer deep dives into what it takes successfully invest as an asset class specialist. Please enjoy my panel with Dan, Craig, and Adam from 2023 and with Mario Giannini from 2022. Hedge Fund Master Class EP. 318 – May 29, 2023 Mario Giannini EP. 262 – July 18, 2022 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

This week’s Summer Series is an asset class twofer covering hedge funds and private equity. The first is a hedge fund panel comprised of Dan Fagan from GIC of Singapore, Craig Bergstrom from Corbin Capital Partners, and Adam Blitz from Evanston Capital. The second is with Mario Giannini, Executive Co-Chairman of Hamilton Lane. Both offer deep dives into what it takes successfully invest as an asset class specialist. Please enjoy my panel with Dan, Craig, and Adam from 2023 and with Mario Giannini from 2022. Hedge Fund Master Class EP. 318 – May 29, 2023 Mario Giannini EP. 262 – July 18, 2022 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

This week’s Summer Series is with Ash Williams, the former CIO of the Florida State Board of Administration, where he oversaw one of the largest state pension funds in the US. Ash was an innovator in the space, modernizing the compensation scheme, asset allocation, and governance in a public pension fund – a notoriously tricky political seat. Original Release Date: July 7, 2019 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is Nicolai Tangen, the leader of the largest sovereign wealth fund, Norges Bank Investment Management. Nicolai joined Norway’s $1.5 trillion pool five years ago after a stellar career in the hedge fund world. He has done a remarkable job as a universal owner of assets, dramatically increasing transparency with his constituents, including on his terrific podcast – In Good Company. Original Release Date: December 4, 2023 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is another twofer, Dawn Fitzpatrick from Soros and Steve Rattner from Willett Advisors, Michael Bloomberg’s family office. We packaged these two leading single-family offices together to hear their different approaches to a similar investment challenge, with Soros leaning heavily on internal teams and Willett primarily on external. Please enjoy my conversations with Dawn Fitzpatrick and Steve Rattner, both from 2019. Original Air Dates: Dawn Fitzpatrick EP. 111 – November 3, 2019 Steve Rattner EP. 153 – November 17, 2019 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

This week’s Summer Series is another twofer, Dawn Fitzpatrick from Soros and Steve Rattner from Willett Advisors, Michael Bloomberg’s family office. We packaged these two leading single-family offices together to hear their different approaches to a similar investment challenge, with Soros leaning heavily on internal teams and Willett primarily on external. Please enjoy my conversations with Dawn Fitzpatrick and Steve Rattner, both from 2019. Original Air Dates: Dawn Fitzpatrick EP. 111 – November 3, 2019 Steve Rattner EP. 153 – November 17, 2019 Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

The movies from my teenage years foreshadowed the topsy-turvy world of today’s private equity industry. Back then, we heard of strange things afoot at the Circle K (Bill & Ted’s Excellent Adventure) and dogs and cats living together (Ghostbusters). Today, a lack of distributions and secondary sales from longstanding leaders strange things in the industry and the convergence of public and private assets might feel like dogs and cats living together. I’ve been thinking about how this will play out over time and in particular, where future commitments from LPs will land. Read Ted’s blog here.