YouSaid · the spoken record

Christie Hamilton

lines on the record: 74
first: 2020-03-09
most recent: 2020-03-09
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Going forward. And that's hard to hear sometimes. And so it's been wonderful to have people who can come to me and kind of a respectful manner and say, hey, let's work on this. And I greatly appreciate that.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's it. I mean, in consulting, I think so many people want to use big words, I guess across this whole industry. And there's this kind of tendency to want to complicate it and make it sound really, but the people that I have found are the most thoughtful investors are the ones who can distill a really complex concept into like this really easy nugget that anybody can digest and do so in like 30 seconds. I'll close with it's kind of a build on the myth of the lone wolf, but how important sponsors are mentors and sponsors and not going and asking someone to be your mentor, but building a relationship with somebody who you admire and trust their judgment and accepting critical feedback. I have learned so much about my blind spots in the past year of people telling me and coming to me being really honest with me and I've greatly appreciated that. But I wish that I had started that way younger. Because I think in terms of a lot of the feedback at this point is about executive presence.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“How do I say this? The lone wolf narrative is a myth. And I think as a society, we're so enamored with this lone wolf concept. And especially, I mean, it's. But in reality, the founders are pretty open about how their teams helped and about their failings and about all sources of other things. And so I wish that I had learned early in life that like that is not a real thing. And that people who tell you that it is, they have no appreciation for people and you probably shouldn't work with them. If you want to sound smart, keep it simple.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Oh, this is another multi-part one because I actually listed for this too. Excellent. Okay, so first and foremost, that 99% of news and information and data is absolute noise. Since I have tuned it out, I think I have become a better investor. And I actually was talking to a CIO that I really respect and kind of mentioned that to him. And he was like, oh yeah, duh, right? And so it seems so obvious in hindsight now that I've kind of taken a lot of that out of my life, but in reality, I think so many people just kind of obsessively watch the news and they're like talking about the election and stuff. And I think ultimately you're probably going to call it wrong anyways. How are you going to express that in your portfolio and why would you? Because ultimately it's a short-term thing in your perpetual capital. The second lesson learned in life is the kind of lone wolf.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“With my mom really instilled a love for reading and just a love for knowledge in me. But ultimately she taught me consistency. So my mom is actually technically my stepmom, but only mom I ever have known. And just this concept of in our society, a lot of times we want to blame other people. Mom has taught me pretty much everything in life is a choice. You can't necessarily control what is going on around you, but you can control your reaction. You can control who you love. You can control who you surround yourself with. You can control what you put in your mind and consistently doing that and showing up for people is really what's important in life. And then from my dad, I would say just the idea that if I'm the smartest person in the room, then I need to go find a new room really instilled in me this idea that you want to hire people that are smarter than you and you want to seek out people who are smarter than you. And you want to seek out people who challenge you.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Ya I mean it's difficult right because then you start getting into campaign finance and all sorts of other stuff but like ultimately yeah they're allowed to have their views and why are we so afraid of that I mean that's that also comes up with a bigger discussion right of like Class, like socioeconomics, just wealth distribution in this country. Go start a grassroots effort or get involved or do what I do and just hunker down and block it all out.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Gotta be nice or can't be too nice, or there's just all of these things around it. And I try really hard not to look into those and to let people be themselves, right? So Cliff Asnes was on Twitter. I mean, unfortunately he left. He had political views and that's perfectly fine. He's human. He should have them. And what kind of society are we if we shut him out or somehow think that we can't invest with him or his team just because of his views? I just find that to be completely ridiculous. I mean, obviously, if he laundered money, right? If he ran a foul of the SEC, they're, you know, that kind of stuff is important. But Cliff Asinus' political views shouldn't matter.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think because I actually there was a tweet about this too I think it's a little creepy how some of us on this side do due diligence now particularly I've noticed that if it's a female GP or a female head of office that people will go to this like nth degree to find every single thing out about this person It's obviously important that we're investing with people high quality good values and morals, great partners to us, but ultimately I don't need to know what they're doing on a Tuesday night. I don't need to know what they're eating. It's actually funny because one of the rules of thumb is, oh, if somebody's going through a divorce, go ahead and submit your redemption. But in reality, a manager getting married has a worse impact on performance than divorces do. And so we have, again, we have all of these rules of thumb and some groups make them take tests. Some groups are saying, oh, you know.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I put out a tweet about this a while back that I need to update, but basically any major investment consultant report I'm on distribution lists for all of them love them. And they're also different. There was one actually from FEG that came out recently about biotech and therapeutics that I'm just absolutely amazing what's going on in that space right now. McKinsey Bain, all of those groups, because so many of them do actual due diligence for private equity. And it's fascinating to hear their insights.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Pitch decks that tout a team's 950 years of experience. Because first of all, I'm like, okay, who's your 950-year-old? And what was it like investing the portfolio ahead of the Crusades? Two conference calls where everybody all of a sudden talks at once and then nobody talks for like 10 seconds drives me insane that when people assume that the man in the room has seniority It makes me smile, so you know not an angry pet peeve, but still heard mentality in the industry big thing over complicating processes interjecting biases making people take tests like you know stuff that doesn't really necessarily point drives me nuts Fifth follow up emails although I shouldn't really say that because I actually I appreciate them because especially when somebody pops up to the top and I'm like oh I can't believe I missed that so we'll strike that one people who take the efficient frontier modern portfolio theory as gospel and Yeah, this will be my last one.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“People who correct my grammar and tweets. And I, okay, so I'm an English miner, so I know some English, and I just always kind of roll my eyes and think, okay, well, you try to put together a 15 tweet thread in the back of a cab in New York City while getting emails from work and tell me how perfect your grammar is. But I always find it funny because a lot of times somebody will disagree with me and then they can't necessarily make their point or win their point. So then they're like, oh, I can't believe you said this thing wrong. Whatever.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I was laughing about this pretty much everything that an eight-year-old lady would love to do. So think like cooking and baking cookies and gardening. My daughter and I, we planted hydrangeas, so I'm very excited about this, although Texas hydrangeas, probably not the wisest idea. But very excited. I took a knitting recently. But yeah, I mean, just stuff that's not investments. I mean, I love investments. I love reading about it. But yeah, ultimately, I also like doing 80-year-old lady things.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“The manager doing what we expect, and so that way we're not saying, Oh, well, this manager is down by X percent. I'm saying, okay, I expect”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I'm actually looking at strategy to make sure that you're executing exactly as we expect. Because it's so funny to me that we get so obsessed with performance, but in reality, I think the more important thing is when you're hiring that manager to set those expectations and to say that's why opportunity set is so important in Edge and kind of role in the portfolio is to put almost, I don't want to call them constraints, but expectations around that manager. And so then for example, we had a hedge fund that was performing phenomenally, just absolutely knocking out of the park. But in reality, I mean, we could have gotten that exposure much cheaper elsewhere. And so it actually kind of works that way. And I give that kind of as a tongue-in-cheek example, but in reality, like that's the kind of stuff I'm looking for. I'm looking for can we get this exposure cheaper? Can we get it in a pure form? Can we construct this portfolio better?”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's difficult. You're talking about investing across the liquidity spectrum. It's like I get everything from daily reporting to quarterly-ish reporting. And then everything in between. And I get some risk reports that are really thoughtful and you can trust them. And then you get others that you hear are like, oh, that's actually not a thing. It's one of my goals in 2020 is to think about how our team can leverage all this data. Maybe trying to filter out some of the noise, but trying to figure out where we've made good decisions, where we've made bad decisions, and start to be really, again, intellectually honest about what are the drivers of our returns. Because at this point, there aren't many endowments that can do that. I'm sure universities can, but everybody else, it's difficult to get those analytics. Even working with a lot of great groups like we do.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Particularly for managers that we've had long term relationships with, it can be difficult when we have to kind of change the strategy of an asset class or of a portfolio when we end up having to redeem. And the best ones understand that and they understand that it's business and that in a lot of instances we can explain to them what we're trying to do and part on good terms and hope that we can work with them again in the future. I can answer specifics obviously, right? But it's really hard when you have to fire a manager you like. And by fire, I use fire very loosely because in reality it's just terminating to do something different. But it's still hard because our business is a relationship business. We like to think it's all data and data driven and data points, but in a world where data is ubiquitous, relationships are what are important.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Less worried about that. It's funny as I get older, I start to realize how much noise there is, right? So it's like so much of what everyone talks about is just absolute noise. And so I worry that sometimes that the noise is going to start impacting stuff. And then I'm going to have to pay attention to it. So that's a risk, right? But ultimately, I mean, obviously there's the risk of a drawdown, but I mean, that's investing. That's what we do. And so you can't be afraid of it because it's going to happen. Just don't know when. And you don't know how bad it's going to be. And you don't know if it's going to be dramatic or if it's just going to kind of move sideways but slowly down. So yeah, it's fun to think about, right? But I don't necessarily worry about that risk because I think our portfolio is well positioned to wither it.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“We did quite a bit in China, and now everyone's really looking at China. So I'm like, I'm going to be contrarian and look at Europe. And then I found out that there are quite a few of us that are contrarian and looking at Europe right now. So I'm not as contrarian as I thought. I feel like every conference that I've been to in the past probably 10 years has said, oh, it's such a difficult environment. And so I hate saying that, but it really is. I would love to see a distress cycle.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“We have hit that. So being really, really intellectually honest about what we're doing and why we're doing it. And then to tie that back again to the strategy and to the philosophy. And then ultimately to the enterprise. So, you know, when we look at it, part of that is having to talk to people within our institution. What will the needs be? What are you guys looking at? We're actually expanding our Plano campus in the next few years. So basically, I think more than doubling it, it's a huge capital project. So what are the needs? Do we need to change the portfolio? It's incredibly exciting thing for our institution. And again, to be able to really fulfill our mission. But it's tying it all together and making sure that we're not just making assumptions and living by rules of thumb that no longer really work for the institution.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Really, since the middle of last year, so since the middle of 2019, my thought has been to challenge both myself, the team, and challenge the stuff that we've assumed, challenge these assumptions that we all hold either together or individually, and ask ourselves if it's still working for the institution. So is our strategic target where it needs to be? Do we have enough liquidity? How robust is our analysis? So to look at, for example, scenario testing and to test asset allocations, I think that that's so interesting that a lot of people on our side forget that modern portfolio theory drastically underestimates risk because it's a normal distribution. In reality, we know that that is not a true thing. Because when you look at all of the kind of output, it says, oh, you know, the 100 year flood is going to be down 20%. And I'm like, okay, well, there have been multiple times in the past 100 years where”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Let's circle back a little bit on the portfolio management process because you had mentioned how that really is the key in what you're doing. Manager selection matters. As you go into the year, how do you think about What are the key things that you need to rethink in your portfolio construction?”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not five paragraphs. You have to understand that in our role, we just get a ton of emails. And ultimately, it comes again in a world where data is everywhere and there's information and people have access, like the relationship becomes really important.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's all over the place. I've had people ask me if I'm mad, if I'm angry at them. And I'm like, no, I just, I literally get so much email. And it's actually insane to me. But you're right in the society where we're kind of conditioned to get that. I don't know how to necessarily. Actually, right now I will say greetings to everybody out there who has an email in my inbox. I apologize I have not responded. It is not you, it is me. And I hope to get back to you in the near future. Keep trying and come find me at conferences instead. I'm not trying to ignore you. I don't think that your fund is bad. Oh, and also, if you really want me to read your email, summary bullet points at the top.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“And went through every email and responded, even with a few words, and that would be a terrible use of my time. So I prefer, again, to focus on the strategy component and to really think about how the portfolio is constructed, because as we know, what 60, 70% of our returns is driven by asset allocation. And then I'm not saying that manager selection has to be good enough. I mean, obviously, we want to work with the best people, but ultimately it's not. My number one focus.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of people assume that I'm meeting with managers all day, and a lot of that happens. I have days where I meet with managers, but in reality, I also don't check my email much because so much of what I do is thought capital and it's thinking through things. It's talking to my team. It's talking to people that I respect. It's talking to board members. It's talking to executives within my institution and figuring out what they need. finding the 10th long short equity manager to stick in the portfolio. And beyond that, it wouldn't be a good use of my time. So I get all of these emails. I think a lot of people, this is kind of an issue with sitting on our side is that I have 2,200 emails in my inbox. I have to have people in a VIP list so it pops up to the top TEDs on that VIP list. But the reality is it's not to be a jerk and I don't mean to not respond. But if I sat down.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, as you're in these diligence processes, everybody tries to do something a little bit different from other people. What do you do differently, maybe in your day-to-day from what you think other people do?”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's like a weekend. This is my light reading for the weekend, reading the offering docs, reading the background, going back through decks, and looking through notes, talking to everybody, making sure that you have high conviction in the group.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's interesting that you ask this because I have had multiple GPs and managers recently tell me that they are looking for long-term capital. They're looking for long-term partnership. They want people with great missions who are thoughtful investors who are going to re-up. And the thing that I would respond and say is if I'm reading all of your docs, it means I care. It means that I'm going to be invested. On a personal level, but then also that my team and my institution are putting a lot of time and effort and frankly money into underwriting you. And so we're sticky capital. And our goal is then to be a good partner to you. So if you're playing the long game, you want people to read your documents. And I found that with GPs that the ones that we typically end up partnering with are the ones who want that. They want groups that are going to re-up in the second fund and the third fund and the fourth fund and continue to grow with them. Sure.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Where does the rubber meet the road in a situation where there is so much demand for funds that are perceived to be high quality, maybe have done well in the past, and you want to read the docs, but maybe somebody else isn't going to, and there's a time pressure.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“That you should probably question. And so part of that also dovetails into the third thing, read all of your documents, read everything submitted to legal review, go through it, understand it, know what you're getting into. Because it's crazy to me that we sign these documents again, locking ourselves into marriage with a GP for 10 to 15 years, and then say we don't have time to read the thousand pages. I think that if you're unwilling to do that, then you probably shouldn't invest in privates because those docs are so important. And lastly, there's a big difference between what is reasonable and what is market. And I will leave it at that.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Something doesn't sound right, keep asking questions. And do trust your gut in that reality. And I'm not saying like, oh my gut is telling me to be in this thing versus that, but particularly around risk, just being really thoughtful of how managers assess risk and how they look at it in their portfolio and how they view it holistically. I think there have been a couple of instances where we've pulled out of stuff ultimately because we couldn't get comfortable with that piece. And I like that I worked for a head of investments and I've worked within a group like Cambridge where those kinds of things are important and where they put a lot of stock into them versus just saying, oh, the performance is great, shut your mouth and look the other way, that it's the operational stuff, the operational due diligence that typically stinks funds, which was a surprise to me. You would think that it would be, oh, we look at the investment due diligence side, but in reality, it's that 10th paragraph on the 30th page.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's funny you ask that because you would think that there's only so much of an informational advantage. There's only so much acreage and you can't have multiple teams doing the same thing and just kind of move them to New Mexico necessarily. And now we hear that some groups that have built big acreage positions are saying, oh, we're going to have to operate. And that's a very different conversation to have with your GP. And it's interesting, though, because I think that it has led to some good things. I mean, there have been a couple of big energy groups that are now doing clean tech funds, which is a thing that I never thought that I would see. At first, I was very skeptical and thought, okay, again, more greenwashing. But they're actually building some pretty solid teams there. And so then you have to look at it and say, okay, well, instead of just being oil and gas, they're across the energy spectrum and starts to become interesting.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“And I used to smirk at first, right? Because I would be sitting in an energy private equity meeting or annual meeting and they'd be talking about their ESG policies. And I'm like, okay, guys. But in reality, they actually have made great strides in safety, for one. That's just a big one, in just being really thoughtful of the environmental impact, doing studies. And a lot of that has come from push from LPs and from GPs. And frankly, from the energy companies, right? Because it's good policy. It's good company culture. It's not about tying your hands and greenwashing stuff. It's about caring about people enough to be thoughtful of their safety. It's a very different thing when you kind of look at it like that.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I grew up in Texas and I understand the kind of thought process for divesting. I get it. I know that for some groups, that's perfectly reasonable and rational and I understand it. The way I look at it is if you truly want to make an impact on that industry, why would you leave the table? You have such a louder and more pactful position to a GP of a fund or to a portfolio company as a member of their LPAC. Because frankly, once you're not”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of really great venture capital funds there that we just can't access. And so it's nice that we have been able to find really great high-quality GPs who are making phenomenal investments and who are doing very well and they're not necessarily the kind of marquee names at this point.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Small portion of our portfolio. A portion of it is China, portion of it is US. And there's this new dynamic inventure in the US where used to, it was the valley period. And even yesterday I was on a call with one of our managers who was saying, oh, yeah, we have partners all over the US now because we have an entrepreneur in Idaho. We have one in Chicago. And it's just so amazing how quickly that has expanded because, I mean, the cost of living is insane there. A lot of people just don't want to live in California. No offense to California. But there is this sort of shift away from the valley. And it's not huge yet. So I think still 40 or 45% of deals are there, but it's been an interesting dynamic to observe and one that I think that we've really enjoyed because it makes us look at managers outside. I mean, there are a lot.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Working with a consultant has helped. So obviously, that's been a wonderful pipeline. We have an amazing committee that has also been a phenomenal pipeline. My boss, my former boss before he left, met with eight hundred to a thousand managers a year by himself. And then I met with another three or four hundred. So really, it's just covering the market. It's letting people know what our mission is, letting people know what we're trying to do. And honestly, a lot of them have reached out to us because the mission speaks to them, which I love. I do not want to ever commit another dollar to somebody who doesn't understand just how important this mission is. And I think that a lot allocators are starting to realize that. I know that private equity funds are constrained, obviously, and a lot of them are hitting their caps, but”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think there's still something to be said for just boring, buy it cheap, create some improvements, and then sell it to somebody with a little bit more money. That's actually worked very well for us.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“See, this is an interesting one because our institution's first private investment was made within the past 10 years. It's difficult when you look at some universities and they've been working with the same venture capital groups, these marquee names, for decades. And you're the new kid on the block. One of the biggest things that we've done is focusing on lower middle market managers, looking ahead and thinking, okay, well, where do we really think that there is still value to be had? Where do we think that people can still buy at good prices, create operational efficiencies, and then sell upstream? And, you know, lower middle market has really been the place that we have seen. And it's so funny too, because it's not just technology. I personally love the really boring companies. I'm like aggregate the street sweepers. Go find the warehouse space because there's a lot of room for growth in technology, right? Obviously, I mean, we're in the early stages of even like SAS, but.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“So let's twist on that and turn to private markets. And you had mentioned that you were kind of late comers into investing in private markets. How have you gone about Thinking through where you want to make your investments.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's like so obvious when you start talking to them and when you meet with them more and more. And it is also so funny because you said, wow, 20 times. Come on, Ted, in Indian private investment, seven years at least, the seven years is the life of the fund subject to two two-year extensions at the discretion of the GP, subject to like three one-year extensions at the discretion of the LP. And lo and behold, you have this private investment relationship that, frankly, is longer than a lot of marriages. And so spending 20 hours with somebody before you marry them, I think it's important.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, just over the course of getting to know them over a few years, I mean, yeah, they've been closed, but from that, you just have a really good understanding of what it is that they do. And so the first time I asked, what's your edge, one of the investment team members says, oh, we negotiate really well? And in reality, I can now tell them their edge. It's very clear. It's never been communicated per se, but it's just very obvious that they are good at getting around roadblocks. Just very, very exceptional. Executing”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“From there, you look at experience, philosophy, I mean really talking to the manager. It's funny because I was thinking about this the other day, the old school way of looking at it was you meet with a manager a couple of times and then like stick them in the portfolio, right? And now sitting on the client side, we have multiple meetings. One of the private investments that we're taking later this month is, I mean, we've met with them probably 20 times.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Networks that can get stuff done, it's really powerful. It is an alpha machine, but it's hard to find them, right? And everybody on the whole just says, oh, you know, China's cooler.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I've asked thousands of managers at this point in different ways. I try not to use Edge, right? Because I know it's kind of the grown-inducing question. But a lot of people say, oh, it's our team, or, oh, it's our culture, which those things are really important. But typically your edge is informational, or at least the ones that really stand out. So either you have access to better information or you do something better with that information. For example, one that I've noticed recently is, you know, a lot of us on this side have been looking at China. And those of us who are just now looking at China obviously are very late, right? Because everybody else piled in a couple years ago. But if you look at Europe, actually, I would argue that there's more alpha there because there's more regulation. There's less transparency. It's very difficult because a lot of times it helps to be part of the culture and to speak the language. And if you could build a team executing a strategy on the ground with these kind of special.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's funny because I think we also try to complicate the portfolio management so much, right? And I think if done right, it's very difficult. I've seen very little evidence that anybody really is great at these kind of tactical positions.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know what's interesting? I don't remember where I saw it, but kind of flipping that question. I saw some analysis that basically showed that after inflows into a particular strategy, performance actually suffers. So if you see large inflows into a substrate within absolute return hedge funds or really any hedge fund, really any part of the market, typically there's this kind of six month lag in performance. And then the opposite also happens when people are redeeming. So, I mean, not enough evidence there, I would say, to go ahead and build a portfolio around it, but there is something to be said for being contrarian in that part of the portfolio.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have kind of a process that we developed, I think. A lot of it will sound familiar and you'll probably smirk a little bit. It starts with the four P's as everybody should. So people process philosophy, performance. But the thing is that three of those don't change very often, right? So ultimately you typically see people making decisions based on performance then, which is exactly what you're not supposed to do. So we basically overlay opportunity set. So how does the market look right now versus history? What do we expect going forward? And then also edge. So what's so special about this manager? What makes them the best one? Why should we put capital with them? I mean, as fiduciaries on behalf of a children's hospital, I mean, that's a serious question and consideration. And then roll in the portfolio, which is highly analytical. And I mean, we spend a lot of time there now just really thinking through what's the value add of this manager to the portfolio.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, like low net relative value kind of stuff, global macro CTA. Everything that's a hedge fund, but that's not long short equity.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source
“I love hedge funds. And I say this all the time, and people think that I'm being sarcastic or crazy, but I really do. I like the downside protection. And frankly, the goal of our institution's program is not to beat the S&P 500. It's not to beat some arbitrary benchmark. It is to make sure that we have cash on hand when the institution needs cash. And so part of that is obviously we want to grow the pool, so we do need equities, but that absolute return bucket is actually incredibly important. Yeah, it's not going to beat the S&P, but it's also not going to make us lose our shirts.”
2020-03-09 · Capital Allocators · Christie Hamilton – Tweeting on Allocation at Children's Health (Capital Allocators, EP.124) · IDENTIFIED FROM THE TRANSCRIPT · source