YouSaid · the spoken record

Andrew Golden

lines on the record: 106
first: 2020-04-23
most recent: 2020-04-23
sittings or episodes: 1
sources: podcast

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“I would say that my advice would be that you should do 50 push-ups every day for the next 40 years. And if you do that, you'll make it to 98. You may make it to 98 other ways. But the idea of, first of all, you say 98 as if it's a good thing. Like enough already. Yeah, what advice enjoy your grandchildren? I don't have grandchildren now, but that's great.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Same guitar riffs. All right, one last. I am intentionally trying to make this podcast stand out from some of the other ones. And you're doing it.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's hard to articulate. I think you get much more comfortable with the idea that there are multiple solutions. So when you're pressuring yourself to come up with the right way to fix something one over time Gets more comfortable realizing that you don't have to land on the perfect solution. You don't have to worry about the choice that seems to be the best choice not being the best choice, kind of just moving forward can be better. Don't let the perfect be the enemy of the good, you know, but I think the real kick in life is there feels like there's lessons that you learn over and over again, but they're a little bit different. It's kind of like Bob Dylan singing one of his old songs again. It's a little bit different. Listen to Jerry Garcia at age 50 versus 25. There's so much. More there, even though it's the same lyrics.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“On the eve of the crisis, that Princeton would survive. I wish I knew for sure that Princeton would survive my misjudgments”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Those would be great lessons to impart to get the time. Yeah, so to be some kind of coach or a fantasy about being a really good board member to help a CEO who doesn't have that experience”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah I am hoping that there is a way that I can exploit the lessons I've learned that don't relate so much to investing but relate to organizations and in particular what it feels like to be the leader of an organization meaning I don't want to pretend I'm qualified to give any advice on leadership but I am I do have one set of experiences about what it's like to be a leader and you know how to think about how you ask for help when you ask for help you know when It's an okay sign when you're feeling a little overwhelmed and when it's a sign that kind of more quickly get the confidence to defy You know, some pressure and how to quickly get the confidence to go in the same direction as the pressure is pushing you because you don't have to prove that you can stand up to the pressure”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, I do have dreams of getting back on the professional shark wrestling circuit. Short, a very short-lived career that was.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sorry to offend. I think it's Richard Dawkins, the selfish Jane concept. So that thought of instead of thinking about genes as the way entities reproduce, as the way organisms reproduce, if you think about organisms as the survival mechanism for genes, that was a moment that blew my mind.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're pretty fun. I think I learned a lot about what it's like to actually be the weak player on the field and learn about teamwork in a different way that there were times that even though I was likely to drop the ball of pass to me, it still made sense to pass it to me. And that helps. But I think there's been some Princeton basketball moments that have been pretty good. Recently one that's pretty good. Back in the day, there were some Duke basketball moments. Alum there. There's still full court pass at Kid Christian Leitner call it.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“And, you know, it was like anybody, literally anybody that would show up like we need you on the field. I have some memories on that.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, but I went to an extremely small school. High school. And so I was able to compete in varsity sports. Where did you grow up? I grew up near here near New Brunswick. I went to a very small private school. where I wrestled and was also there was a sport that no one knew about that only like a few schools in New Jersey played called lacrosse”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“My parents would say, whatever you do, do well. And that unfortunately stuck with me because, again, it raises the stakes. And also, it turns out that not everything worth doing is worth doing really well. You kind of want to spend your effort budget wisely. There are some things we're good enough, it's actually good enough. That probably stuck with me.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a particular solitaire game called Spider Solitaire that is a guilty pleasure because every time I'm doing it, I'm thinking, oh my God, I know there's no justification for this. And unlike the classic Klondike Salder or whatever it's called, this one has a little bit more skill to it, Evan a little bit. I would choose that over some other activities because...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“There was a bunch of emotional concerns that weren't necessarily there. I ended up not doing well in that. Well, you know, I'd already not done well in another career. It wouldn't have been new to me. And I think that was an unfair advantage. It's frankly an advantage I don't have anymore because...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“And not try and plan too far in advance. You heard my story. And I think it actually was a source of strength when I finally did get interested in investing, having done things that I had liked along the way, had at least two advantages. One is I learned a lot about a lot of different things that I might not have otherwise learned if I had followed a straight and narrow. But the other issue is it enabled me to develop an ego that was in the early years quite detached from investing. So when I first got involved in investing, I could think of myself not as a person who's destined to be an investor, I could think of myself as a guy who's a guy as a human being who happened to be doing investing now. And that meant that”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Following your passion, I feel that it's true except for I want to modify that and say follow your like. The problem with telling someone follow your passion is it presupposes that they know what passion is. And, you know, it's almost like... Dating situation is like saying, well, you should go out with the person who's going to be your spouse. I don't know that yet, right? And I don't have to figure that out before I go out. And that's right. You should iterate on it. So I think you should really go down path.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“My kids are. Certainly one that's in well past first inning, so I'm going to answer without the presumption that their career is investing. If you want, I can return to that. There is a cliche about...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“As you know, we're pretty circumspect about top down stuff, you know, even if you're really good since you're not making a lot of bets, you know, it's pretty easy to come up short, so to speak. That being said, we have some outsized exposures to things compared to most investors. And some of those areas, one can imagine that it's particularly risky. So we actually have had unusual for us hedge. We've got fewer to dig deep enough you would say, oh, I bet you they've got a lot of investment in China. Yeah, we do. And so maybe we want to take that R&B exposure down a little bit because that's something you could imagine having a real break.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, sure. You know, again, cross-sectionally makes sense. But seriously, shouldn't there be some premium for the world waking up to some kind of shock? It seems that all the time people always feel that this is the most risky time, but you'll find someone who will say that. I'm not saying it's the most risky time, but I'm willing to say, oh, okay, there's some definitely, there's visible some risks that usually aren't visible, and I think that may be because they're usually not as prominent as likely to.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“But wow, it feels like there's a lot of potential volatility in fundamentals in the world. And that doesn't really seem to be in a lot of prices. Prices make more sense if you just simply in kind of your base case assumption, right? Interest rates are so low”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“In the markets, there's the obvious one, and this will make this very dated, you know, I assume that people will be listening to this podcast 30 years from now.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know until they're not, you know, so I think there's some firms that we're pretty excited about and I'm not going to tell you about because I don't want to create competition. I also don't want to let my other son know that this is my favorite son. You know, I think that it's a time again where it may be better prospects a little bit more off the beaten path.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's probably two ways of answering that. Normally that question is, I should be able to tell you, oh, we really like timber or apartments in Brazil or something, you know, some asset-based thing. Again, our business is really about finding great people and partnering with them. We believe that who matters a whole lot more than when you invest and may even matter more than what they actually do. Some horses you want to hit your wagon to. And some of the growing concerns of other customers in the hedge fund world create some opportunities. We were becoming a whole lot more attractive as people who are going to do the intense qualitative work. The managers often have to choose between smart clients and rich clients and rich clients are a lot easier to deal with.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Significance, what I care about isn't the significance of that independent of other analyses, including these qualitative ones. I just want to throw it into the mix. I think there's still this judgment thing which goes beyond just cerebral stuff. There's a kind of emotional assessment being made as well that I don't say in a denigrating fashion. I believe that there's information. I think investing is a science craft and an art. And the important thing is to, A, be willing to use all three pathways, but B, make sure you know which pathway you're using at the time. There's this art to it, but you should really be very explicit to clearing this isn't an art judgment, not a scientific judgment. And I get frustrated when people try and torture some scientists. Judgment to justify their gut feeling.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. So, you know, it's something you throw into the mix, but if you think about how these judgments get made in a qualitatively focused, quantitatively facile group like ours, you know, it's more of a almost a Calculation like here's my, you know, I believe this thing with this much probability, this much certainty, and this new bit of information comes in, how much does it change it? I mean, I can't tell you the number of times when, again, just to kind of noodle on something, I'll say to a relatively new colleague, can you just regress, do a little regression on this information? It'll help me think about it. They'll come back and they'll say, well, that was a complete waste of time. didn't come close to a significant, I don't care. I need to see the number, right?”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a lot of information that's a whole lot easier to get. And so it means that you can kind of test the stories, the arguments that Madras put force because they no longer Information asymmetry that they used to have, or at least you can hone in on the edges that they do have in terms of just having more information. But I think it's not as important to the way we think about investing the long-term horizon, investing in people. You know, the issue is that I say this as a recovering quant. You know, you can't drive the ship. If the ship is to build a roster of managers, you can't get enough data to base a decision without running a foul of a key premise, which is that the engine that produced that is stable and that nothing's changed. Clearly.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“But it's definitely more helpful. As I said, it sounds like a great idea when I've ever told. He said, oh, yeah, it's just really hard to figure out how to execute it. You get these discussions that are orthogonal. Someone says, I believe A and someone else says, I believe nine. Okay.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, it's a B plus, well, maybe it's A minus. Okay, you know, I could be wrong. And it worked the other way as well. I wanted to do something. My colleagues would say, gee, we think it's kind of like an A minus. And when they say that, they mean they think it's a B minus. And I would say, oh, these people, we are agreeing that there's this hair on this thing. There's this risk on this thing, but they're just too risk averse. To depersonalizes to say that you're playing an assigned role. Let's see how strong your argument can be, you colleagues, and take a little bit of the power dynamic out of it. You know, at the end of the day, I'm still counting the votes, so I'm still that last line of defense.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, you know, all right. I think this is probably a B plus A minus, you know, if it's a B minus, forget we're not going to do it, but”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Realize that more than half of them shared this characteristic of there was some kind of political element that, and I want to be careful what that word means, some kind of element in decision process that can be traced back to the old style where I was always the last line of defense. I may still am, but I played the kind of skeptic, you know, I'm going to argue against you proponents. And I realized is that it was easy In that framework for there to be these kind of political or maybe some emotional elements to push back three times in a row on someone's idea creates a risk that they're going to get frustration that is incommensurate with the lack of quality of the idea. So you begin to say, well.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so that is directly connected to the GFC or the global freaking crisis, we like to call it. And the warning is it's a process of that rotating assigned devil's advocate sounds a whole lot better than it actually is. We still haven't cracked a code as to how they're really implemented, but the reason I say it came out of the GFC is because when the dust hadn't sailed yet, but when I was emotionally capable of inward reflection I remember this plane ride, I said, well, let's think about the 10 worst decisions, investment decisions that you, Andy, or Princo has made. And let's see if there's anything that we can figure out in those very careful essays, as always to differentiate between bad decision and bad result. And what I only got to about number seven or eight when I...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Maybe as much as mine, but not as much as my colleague John Erickson, who's been here for 19 years. And so that's that kind of one team, one dream gang tackle to process information efficiently. It's not everything we're doing is all the time everyone involved. So you have to create a deal team. And that gets constructed. There's certain tendencies of people who do more work in a category. mostly representation of that, but there'll be someone else who is getting a Visit into that world”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Present opening arguments as to here's why we should and here's why we shouldn't do it. By the way, everyone walks in the room. The first thing I do is they get a ballot and they have to say what their vote is going into the meeting. And then at the end of the meeting, they write down what their vote is, and then that piece of paper is set aside, and then we all show our votes simultaneously through a set of hand signals. And then there's a super secret, not necessarily stable algorithm that's in my head as to how those votes get counted. So we have a summer intern here. Who is in her second day and she voted, it turns out that her vote doesn't have quite the same weight as...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. So at the senior level, we've divvied up the asset categories so that there's someone who feels ownership that helps avoid cracks. That stuff may fall through. Yet everything's a gang tackle, and I'll explain that in a second. I'll say at the junior level, we've experimented with lots of different ways, and they tend to change depending upon who the athletes are, of giving people broad exposures, not necessarily always cross-sectionally. Sometimes it's serially over time to try and give them the ability to compare and contrast ways of thinking, to make their lives more interesting. It helps us recruit people when they feel that they're at less risk of being pigeonholed into something. But the gang tackling, you know, for the major decisions, we had one this morning. It's all hands on deck. It's all 16 investment professionals sitting around the table. Everyone's gotten a packet for what we're calling the bull bear session. We've assigned not just proponents, but some people that play Devil's Advocate, and they go at it and kind of...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's exciting to see them develop. It's another form of compensation. And what we're really looking for are first principal thinkers as opposed to learn a recipe and just use that recipe, which is one of the reasons why it's often difficult to bring the lateral higher in, because they've got a certain way of doing it. And it's hard to know just through any kind of recruiting engagement whether or not they will be the type that will adapt to a somewhat different set of circumstances when appropriate because all the stories are talking about what they've done in the past all made sense then, but we don't know if they'll make sense going forward.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's most days. Yeah, yeah. Yeah. You know, definitely blessed by having a lot of the great colleagues and where we found them is not necessarily where we think we'll be finding them going forward. Another core belief was that we do a whole lot better by growing our own talent. But when you're at certain stages, you can't wait divines and wait for the grapes and then age. So if you look at people who are here, we're marked by some pretty long tenured people and some of those longest-tenured senior people were lateral or lateral-ish hires. But where we think the future of Princo is...”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“So on the fee side, you mentioned these kind of layering and opacity of where money is going. You know, again, it's a kind of, does this system make sense? We certainly want to have disclosure, but we need to understand it doesn't make sense. If a firm is Providing a lot of value creation services to a company that would otherwise have to be shopped out. Well, let's see, does that compensation make sense? In some cases it does. In some cases, oh, you want a fee for selling a company because you minimally used an investment banker? I don't know. You're already getting your incentive fee slice of that. That feels a little funnier, right? As opposed to, oh, you did this consulting study that said, here's who your customer should be.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you can find folks who are motivated that way naturally, not by contract, then you can start talking about some contractual things that do help to align the interests at that point over the horizon of the contract. You can agree that base level fees really should not be the source of major wealth. We should understand what the compensation market is, the labor market is to get a talented person and tell them that you're going to be unleashed in this wonderful place that's going to get to do what you think makes sense and create a lot of value and be proud of that value created. How much do you have to pay that person to show up to work each day given that if things do break the way they would expect them to, then they will get that lucre raining down on them.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Wouldn't make sense. You know, one of the things that I think we found useful is to kind of reframe some of the ways others talk about this and talk not so much about alignment of interest, although that's important, but there feels like there should be a better word than interest. That feels like there's a contractual element of it. And I've been test driving this phrasing of alignment of appetites. I want to make sure that the natural inclination, the appetite of the managers fits well with our own appetites. And so we're looking for managers who are competitive folks, but they're competing on producing the best possible returns subject to making themselves, as I said, silly rich, as opposed to just trying to make themselves as rich as possible, subject to producing good enough returns that that happens.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“This specific point about fees, we believe it's important to optimize fees, not minimize fees. Sure. And we want to make sure that The firms actually have revenues to the principles that are enough to make them silly rich without having to find some other way to justify themselves like garnering assets beyond the point of being able to execute their strategy where it no longer makes sense as a whole what they're trying to do. So we're a little bit less hawkish on some of these things than others are but we still care a lot and there's this idea that even the low end of the fee scale only makes sense if the firm is really capable of returning excess return right it's like if they're not capable of that then the chances are you could cut the fees you know by a very nice haircut and still”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“And on the private equity side, let's talk a little bit about the buyout portion of the equation. Rates have been low. It's given buyout firms chance to have cheap leverage for a long time. Returns have been great. On the hedge fund world for the last ten years, or returns haven't been great, now you're seeing particularly probably starting with the later movers, the public pensions, a lot of fee scrutiny. And it makes sense, right? If returns are mid-teens, you can extract more in fees when they're mid single digits. Private equity world, people are starting to wake up to, huh? That's a deal fee and it's a monitoring fee and that's an exit fee. And oh, there's a management fee. But the returns have still been high enough that the capital is still strong. What's happening now in the sort of GPLP relationship with private equity firms? And what are the types of firms that you embrace as you look forward for the next 10 years?”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“So some firms scale a lot better than other firms. And I think it's one of the key challenges of investing is how does a firm develop, how does it grow, right? Because it's not just asset size, it's evolution of strategy. And there's a natural tension, there's a lot to be said for sticking with your knitting and doing the thing that got you there. But it turns out that the world may not reward that the same way. And so it isn't a question of are you evolving, the question is, are you evolving smartly in a way that inspires that confidence?”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Versus and how big is it going to be And even if it's not dry powder per se, it's not amazingly great investments while they're waiting. Sure. So this is where you get to the, there are several different ways that the cat can be skinned, several different ways that we're interested in backing, but those ways have to make sense. When viewed as a whole with everything else that's going on.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so you'll hear me talk a lot about vectors, things that push a decision one way or the other. And obviously there are a lot of things that... Ballooning assets. On the other hand, the world's a lot more complicated, and there are certain strategies where the size actually helps. Now those strategies bring with them a different kind of risk and a different kind of calculus. You know, there are some who have been very successful at keeping a war chest through long periods of time so that when there's a highly motivated seller who really needs help with a problem, the fund can step forward and write a billion dollar check. So whether or not that's an approach that is attractive depends upon some implicit calculations that you're making. The drag of that dry powder”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“A lot of those firms, both through organic compounding and then some of them through growth in acquiring assets, are much, much bigger today than they were. Ten years ago, certainly twenty, but it's really the last, say, 15 years where there's been a tremendous amount of growth. How do you think about that whole notion of balancing sizes the enemy's performance as these guys grow? Can they extract that much return in dollars from the markets? And at what point in time do you say boy they're awfully big. You know, we probably wouldn't give money to that fund if we hadn't had money with them for a long time to get to this point.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, we don't step up and say here, here's 4% of the endowment. We've never met you before, but you seem like a nice chap, so nice gal. You know, yeah, so in part because a lot of them... Have grown to that size the old fashioned way. They've earned it. They have.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, you know, if we were condemned to produce the median return of the hedge fund space, I don't think we'd have any allocation. So it's a little bit of the act of confidence. Some might say arrogance that our opinion of the asset class is quite different, if you want to call it an asset class, opinion of that collection of managers is quite different from the opinion of our 15 or so relationships that we have there.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Let's turn a little bit to independent return. I know that's an area where you started off many years ago at Yale focusing when, at least in the hedge fund area, absolute return at Yale, there were, I remember you had a sheet of paper that listed all the hedge funds. I think it might have been two sides, might have been one and a half”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. And its time will come. But remember that. We did not think it was going to be competing against any one particular category. It's whether or not the thing as a whole.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source
“And these are people who come with a lot of experience in investing, but most of them come with experience investing in one particular area as opposed to, say, the fund to fund. Frame And this is just one example of why I like still the top-down terminology. And so if you come and you're used to investing in buyouts, liquid buyouts, you might look and say, you're less familiar with real estate and you say, boy, that real estate performance has not been nearly as good as buyouts. Why are we doing any of that? And if you have the language of portfolio theory, you can explain, well, because it still plays a role.”
2020-04-23 · Capital Allocators · [REPLAY] Andrew Golden - Princeton University's Chief Investing Tiger (Capital Allocators, EP.13) · IDENTIFIED FROM THE TRANSCRIPT · source