YouSaid · the spoken record

Meredith Jenkins

lines on the record: 99
first: 2021-09-27
most recent: 2021-09-27
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

“Case, I'd say that's the first thing for me is that part of it is just who I am. And we were in a box where I wasn't able to do that. The other part of it for me is that when you're trained in a certain way of thinking, like so we were trained, value is good, value investing is good. And that's your formative experience. It takes a while to get to the place where you understand, okay, you can intellectually relate to that, but that doesn't mean that's how you best invest. And so it was only about a year, year and a half ago where this became a little business and it was okay for my life. I started investing my money again. And it was so much more in sync with how I feel I am as a person, what I do best, which a lot of it is how can I help add value to the people I'm investing with. I think we should wrap it up. That was super fun. I want to talk to you guys about my fund. I can't do that on the air, so we're just going to shut it off.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“20 years ago we had dinner together and talked investment ideas and traded manager ideas and asked you know we're sending still sending each other emails on have you heard of this person or what do you think of that idea and one of the things i love about this business is that you get to talk to other smart people and share ideas and be collaborative and that the world's a big place i'm not looking to you know put up on a billboard every manager we're allocated to but that there's a lot of smart people you can share ideas with that's awesome that's what makes this among other things so much fun”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know what's funny about that though is the nonprofit world all talks to each other and then you get to for profit. And so, like, I think like people are kind of shocked sometimes that Brett's team and our team, they're like, you guys are competitive. I'm like, well, Brett's slightly bigger than we are, but our teams, like our teams, I think.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, this is kind of, I don't think the SEC will let me say much if that's what happens. premier investors but the concept was the same so the first thing is potentially yeah the first thing is the biggest difference which is a huge contrast the huge contrast from where we started is i love sharing things with people and when we worked at yale you weren't allowed to share anything with anybody”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Me, but the impact you have obviously on Yale, but like all the people, so he and Dean teach a class of 15 kids a year or whatever. But you do it for 30 years, it's 450 kids. And they're all Yale alums. And so you start to get these waves. But that was hugely impactful. I struggled a little bit with the second person because I didn't have like a second mentor that really was influential for me. But I've had so many people. There's like managers and portfolios or people that give you advice along the way.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is it my To go. So, this is a funny one for me because Casey knows it's better than anyone. Like, Casey and I started our career, we didn't work with that many people. So it wasn't like you had all these people at Goldman. There were only maybe a dozen people at Yale. And then you go to business school. And next thing I know, I'm like starting a partnership. So it's funny. So David was like to all of us, like a father, like an incredible mentor. And I didn't really appreciate how much he impacted me in the subsequent years until he passed away because I had a different kind of relationship with him after I left and it was sort of here and there and it would come and go and he wasn't a consistent sort of source and mentor to me throughout my career. But then when he passed away, I had been fortunate that I have not had up until this year a lot of people that were near my day-to-day life pass away. And it was just like a massive blow. So you start to appreciate somebody like that, not just for what they did for.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm more like John. I've got more than two. I can count, but I do have more than two. I could be like Brett and say, there are few people I've worked for over the years who are great because he actually did say more than two. And he didn't name his Goldman. Anyway, I was very fortunate to work for two very smart, really strong-willed, confident women in Deborah Fine and Ellen Schumann. And both of those experiences were phenomenal. Learned different things from both of them, but just feel extremely fortunate to have worked for both of them in terms of the shape that they had on my career. And then I would say, you know, having Kim as a partner for those five years that we were doing were CIOs together, I learned so much from her on just.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Like, I'm the glass half empty guy. He's the glass half full guy. I'm the guy who can barely walk around the table, and he's the one doing Iron Man triathlons. He's the face guy, Rubrick the Monkey Boy in the back room.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Very small number of partners I worked for directly and hired me there. The second one professionally goes back to there's no such thing as good deals with bad partners and it's all about partnership. I'm fortunate enough to be co-CEO with a partner who I've known 30 plus years. We were great friends from college. It was his idea to start this business 21, almost 22 years ago.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Professionally, I would say two people. First, I started my career similar to Meredith Goldman Sachs. I lasted a little bit longer, and it was great to spend the first seven years of my career at Goldman Sachs, especially when I started. It was still private, it was still a partnership. You were working for people who were partners, and you saw how they conducted business. And from the partner who hired me to the handful of partners, I worked for directly over those seven years. I would say there are, I mean, I think of investment personality where people come up through the ranks and they take things they liked from different portfolio managers they work for and they build their own personality i would say i really built my business personality from just the incredible positive traits on how people interacted with their peers how they interacted with junior professionals how they interacted with clients from goldman sacs but particularly”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, he went from when he started his career, from the trading desk to M&A, which not a lot of people do, but then he made another transition into an investor. And when he left an investment banking and joined the Pritzker organization and a number of investment committees. He's always taught me it's about people, number one. And going back to the earlier comment about partnerships, identifying number two would be very difficult. I was blessed as a kid being around people like a Jay Pritzker who when I was 12, I had to write, I had to give a speech on the person I most admired outside the family and I chose Jay just watching and being able to sort of sit there and listen to deals over the years, getting to know Paul of Villain early. All you guys have learned a lot. Some of it has even been useful.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, number one was my father who dragged me to meetings from the time I was a little kid and dragged me to investment committee meetings starting when I was, I think, 19 or 20. I mean, I always joke that we went to baseball games and football games. So it was a normal father-son relationship, but he was giving me Howard Mark's letters in the early 90s and just watching him.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, David Swanson, obviously, and what a super sad year. With everything else going on, both, and actually, I can say professionally and personally, just I was talking to someone about having your parents know you as an adult, but they know you in a different way. And so having someone who's been with you since senior of college or whole adult life and losing that has been really hard. I've been really lucky to have mentors like across my career who've been really, you know, instrumental, like Carol Einiger at Rockefeller. She was one of the first female partners on Wall Street and being able to work with her and get confidence from her and kind of the approach that Rockefeller was similar but different enough that it was kind of great training. So I've just been, I think, really lucky to have great mentors throughout my career. Full circle with Paula taking over. I know. It's so great to have Paula, who's the dear friend taking over at Rockefeller. Rockefeller is such a wonderful, amazing institution with all those awesome scientists there. So it's really fun to have her taking over.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Able to check the boxes. Yeah, we have an ESG framework. Everyone looks at it when they look, but then you sit down with the analysts to say, well, what about this business you're in? How did you think about the ethical issues there? And they can't describe it.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“When someone does poorly in the ESG rankinator, you highlight that to them, you highlight that they're not getting fired over that, but they realize that they might someday allocated to in the future because of it. And what we highlight is we obviously allocated to them and we like them. We'd like their business to be more successful and more sustainable. And therefore, they should be making changes to make sure that they can execute on our behalf even better going forward and they should be making changes to do that.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was us saying having, again, it's qualitative, not quantitative. Although we do have a score, it's a range. And we kid around, we call it the rankinator, right? You know, if I feel bad about it and you give it a little score, you know, you get a score, but it's a pretty quantitative measure of”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I would actually say it's the polar opposite in that we've found a number of managers who've done less than they should have. They are uncomfortable in that situation because we and others have raised the issue and then they've used us as a partner to say, well, what are best practices? What are some of your other partners doing? And how can we do better? So I don't know what the opposite of greenwashing is.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“And so I would say we are doing significantly less fossil fuel investing, first of all, we've done very little public, a little bit on the private. On the private, it's been much more short duration and dislocation driven in 2020. But even that has really run its course and ended because they're hard to evaluate, right? We've talked a lot about investments that are hard to evaluate. I think evaluating fossil fuels is ever more difficult. That doesn't mean it's impossible that there aren't certain investments in credit or shorter duration investments where you can take advantage of the dislocation. And doing goods important, I would also say it's important from a business perspective. A growing percentage of our clients, that's a significant percentage of our clients these days care a lot about how their money is invested and with whom their money is invested and what it's invested.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Both. In all seriousness, one, we've done a detailed ESG review of every single one of our managers to know what are their policies, how do they think about investments. We have become over time firm believers that doing good is not mutually exclusive. 20 years ago, SRI was, you want me to fight with one hand behind my back? I can't own tobacco companies and alcohol companies. And now if you don't have a sustainable business model back to the we invest in cash flows, you can analyze what the cash flows are of a oil exploration and production company because I can't tell you what the terminal value is. What is the value of a company that”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's these pockets of money that you have to be majority owned by a woman. And I think that also just kind of is hurting the women who are leading firms, but maybe how to take outside capital to get started because they're already at a disadvantage. And then all of a sudden they get knocked out of the bucket versus just saying, why don't you just say women led or minority-led or some other way to think about that so that those pockets of money still get to them and they don't get knocked out?”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“And a lot of talent office. I mean, if you think about it, I can't, I'm sure the numbers are going to be off, but what are women like 50% of the population? And it's 10% or higher actually. Everyone's. Putting a thumbs up. Educated population. Yeah, it's higher. No, like college. She's right. College or it's law school graduates. I think it's less than 10% women in private equity in senior roles.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it depends where you're doing it. For example, the VC market, I think, is a very natural market. You need to put money in the hands of people to be able to move up. So there's so many amazing women entrepreneurs and women VC funds that are subscale that can't get money that are super impressive. There's a huge amount of them. It's not like they don't exist now. It's different when you get to hedge fund land. I think it's harder because that requires a different structure, mousetrap, operational background, cost. But when you're in like VC land, for example, you can have a definite fund.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“I have a thesis about this that I want to run by you guys, which is that there are kind of two ways people are approaching this. One is, as you're describing, which is let's talk to the organizations, let's make this a long-term change as a long-term problem. It requires a long-term solution. But a lot of the response that I've seen from the people I talk to is we're going to go and invest in a diverse manager, a diverse owned manager. And my contention all along is that's incredibly misguided because the structure of the industry today was created based on the old norms. So you're not going to have a wave of today of new diverse funds just because people go and decide they want to try to invest in them. You need to be able to do that 10 years from now.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“And now, and so I think we try to dialogue with them about sources of ways to get a better pipeline and work through it. And there is challenges with if women don't see women at the senior level, it's hard to get them to join. So you have to actually give them reasons to join. So I think the dialogue is so demonstrably different. And I think people genuinely, there's always outliers, bad players, but I think genuinely want to fix it. And also now the data is telling you that it's better outcomes, the decision making.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Love to have I would say, even as recently as three years ago, when you would ask the manager, they would say, We've tried, we've tried our best, there's no one will apply for the job. We tried. And the conversation is demonstrably different now. I went into a meeting with my partner Jerome. And what's so great is when you work, our firm, which I love is half men, half women, and you go in and it's actually Jerome asking the question. Like, there's no women on this page. And they're like, I know we had this woman organically come up and be a partner. And the other issue now, and this gets back to being a partner and not greeting people, but actually trying to engage in the conversation to help them, there's now so few women at the top that they're all getting taken away from firms, right? Competitively. So it's an even bigger problem for people who've maybe even tried to do it.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Do they know what to do about it? They are starting to. You know, we are way past in a great way. We are way past the, there's no pipeline. We'd love to have diversity and inclusion, but there's no pipeline. Like that's”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're doing a variety of things. It's kind of one of our, we have kind of a responsible investment framework that we apply to the whole portfolio and diversity and inclusion is one of the pillars. And we both look at it in the context of our managers and spending a ton of time with them in terms of what are they doing, taking the first measure of what they look like right now, but what are they doing to change that going forward? What sort of connections do they need in terms of internship programs? how you build a pipeline of talent that is diverse and inclusive and working with a lot of our peers similarly.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“This other area that we didn't broach on yet, but we're getting passionate about, and I think it's super fun because the tide is changing, but conversations around diversity women, people of color, that I think are, it's been game changing, I think, in terms of the conversation. So I think this is an area I know Meredith's been focused on.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“There should be one rate one hour a night for three nights. So my wife and we were not married the last time we got together Went nuts on this. Congratulations. I will accept that. I know. She went nuts on the notion that like, what's this going to mean for the competitiveness of maybe not our kids, but like the next generation of kids in the US if we all know that video games in general are bad? I mean, maybe there are a couple of games that are strategic, but for the most part, there are a lot of games that are good. It's wild.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, those are the secondest doing the apps. But we think that there's tremendous opportunity. I think that it's frustrating that people aren't paying enough attention. And I think we're finally waking up on it. Cybersecurity has been something that has been as clear as it could be. And I think that we're really asleep at the wheel on it”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Systems don't talk to each other if you want to basically stop that 35. You have to go to 100 congressmen and congresswomen and tell them, hey, listen, we got to cut jobs in your district because we're going to go this route. And we're spending a lot of time on that from an investment standpoint because the amount of money that's going to be going into this is going to be extraordinary. And you've already started seeing it. You see in China, basically Byron Win always said one of their greatest advantages was that they don't have Senate confirmation hearings, so they get the best and the brightest in their government and they're able to do what they want, when they want it and how they want it. They took their best and brightest and they've been working on AI. They've been working on cybersecurity. Our best and brightest have been creating apps and games.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“One thing that's been frustrating for me is just the whole COVID and the attitude of it's all or none. You don't wear a mask or you lock down. There's so much that we could do in seeing some of the behavior over the last year, year and a half has really bothered me in the sense of how hard is it just to do something to keep other people safe. So that's a whole full book on that. What's bothering me, what's frustrating me? I don't know if it's frustrating me, but what's concerning me is I think we're asleep at the wheel on a number of things. I think the China relationship, there's a great book called The Kill Chain, which talks about basically over the last 20 years what the Chinese have done with their military, their ability to pivot, their ability to, if something's not working, stop and change. For example, you look at our F-35 fighter jets.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Help them solve it. And that's key on the relationship. It's we always say which is bolded and capitalized. Is it limited or is it partner? I'll joking aside is that if they're screwing you over on nickel and diamond you here and there, there's a lot of money to be had. Do you want to be in bed with them? And I think that having that partnership and being able to write the check, being able to move quickly, being able to bring industry expertise as we try and do that's who they're looking to do the deals with and to be able to take advantage of that.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Someone said it earlier, I just feel like we were all maybe raised on being actual partners. Like I have to when I talk to some of our teams. To ask us, we're not going to grade them and put them into the like blacklisted category. We're going to actually help them solve it.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“A little over But I'm not sure 20 billion is big, right? I'm looking out the window in BlackRock and Blackstone are literally within a seven iron from here. So your definition of big varies. I think for us, one longevity helps, right? We've been around 21 years on average, you know, we've been with a lot of these managers a decade or longer. You've become good partners. And so they know you well. They know what you like. And they know you can move quickly. And so I think notwithstanding the size, having a process that is rigorous but can be quick helps, I also think we can write a $50 million check across our clients. It can be bigger if we need to. It can be smaller if we need to. If you had to put a billion dollars to work, it limits the opportunity set as well.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know how much they spend on their private plane. We're getting to the John Harris frustration segment. I have one question, though. The biggest difference between today and when we started for you is your size. What you were talking about being super busy because you get the first call or a first call from your group of managers, a big part of that's because you got a big balance sheet to work with because your business is what? 20 billion now?”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Like, it's a subset of it, right? So I'm sure that many people have had very terrible experiences long short. I think, you know, if you're still invested with a managers, you were invested with 20 years ago. I'm not sure you've had a great experience.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“There was a pause in the conversation. What did you expect me to say? I had three of them, actually. Thank you. There's four of us from the island of London.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Still, I think between John, Brett, and Casey, they're the only three people on the island of Manhattan that are bullish on long short. But I get that it's nuanced. With all that said, thanks There was a pause in the conversation. What do you expect me to say? I had three of them, actually. Thank you. There's four of us from the island of Singapore. I agree too. That's not.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, exactly. But the best part is that you get this, again, non-nuanced view that people say Japan demographics are terrible and like all this stuff. And I'm like, but we're talking about a long short vehicle. Like it's super interesting, right? So we would argue some of the long Japan stuff is interesting too. But I just think we get the same thing with Europe. Like, why would you invest in Europe? And we're like, because it's long short, and it's like super inefficient and there's talent and it's great. There's all these things to do. So I just think, again, Trying not to get into this trap of the conventional wisdom at the top that's just like a blunt force object and really thinking through the nuance.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Actually, circle back to Casey's point on manager learnings over time, it seemed to me, and this is more just speculation, but just from watching it and how quickly it moved, that the past 10 years taught these managers, like as soon as you see it starting to crack, go all in.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“And in addition to being able to give existing managers more money, I would say by being close to those managers and being good partners with those managers, there are a number of situations over 2020 where you got the phone call and said, I need a lead investor. I want to back up the truck on this theme or these three names or this name individually. And so it's not just being in a hedge fund, but it's special purpose vehicles, sidecars, and other things that were created. I'd say we were as busy as ever in doing one-off investments. And that's part of being a good partner, being able to write a decent-sized check, being able to do it quickly.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it was a decent. We don't have that many, first of all. We probably have like, you know, six to eight at any given time of longshore equity managers. We're pretty concentrated. So we have a big contingent that's Asia-based. So they were getting that information. And then we have the ones in Europe who are also getting similar information. So yeah, I mean, it was actually, it was interesting to meet with some of them even in October and November and December of 19 hearing kind of the data coming in from China on stuff slowing down and going on that then kind of gets and it was so it wasn't a macro call it was actually a real call on data and what they thought earnings were going to start getting impacted into it”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so what we found again, we don't like macro bets on exposure, but we think that our managers back to the earlier point about data and everything, they actually were already getting data on China. So if you had even in Europe one of the managers does a lot of companies that have ties into China. And so from their data analytics and stuff, they were already getting signals to kind of pull back. So they had actually already going into COVID reduced the net to begin with going in so that they actually were able to be a little bit more offensive coming in into COVID.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, over that period of time, one of the questions on that long short strategy is the structure of the bucket. So it's one thing to say, oh, you can rotate your longs into these growth stocks that are now trading like value stocks. It's another thing to get net long. And I was just kind of curious, like, did you guys see people breaking out of the confines of, oh, I'm Jones model? 20 long 60 short, but now I want to get long because the opportunity is”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“We had both. It helped in 2020. It hurt a little in 2021. But we also had the value guys, like the energy guys were up big in the first quarter of 21, too. As Ted told me once, being diversified means always having to say you're sorry.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Ours was exceptional without it being growth driven. So then we didn't get slammed in the first quarter of 21 with the rotation happening because it wasn't a growth-driven performance in longshort for us at least.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Agree completely, and I think it also goes back to being able to underwrite it. You in March of 2020 could talk to a manager and they could explain why they loved Hilton. You know, it didn't own assets anymore. It was really a reservation system. They'd be losing $50 million a month. I forget what the number was, but they had $37 months of liquidity at some point the pandemic's going to be over and they're not long assets and they've got plenty of liquidity to survive or visa, yes, consumer spending is going to be down, but it's a company with zero debt and the trend for electronic payments was going to go up. And I could give you lots more stories, but managers were able to take advantage of dislocation who could move quickly. And there's something about long short managers and that type of capital they have that they were able to move quickly. And so long short performance in 2020 was exceptional.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I actually think COVID was interesting both for the public equities and the long short guys drawdown rate happens so fast, but it was really severe. And so if you were a longer term oriented, even our long equity guys did a great job in terms of just saying, even if I project out three years of depressed earnings or five years of depressed earnings, these stocks are so cheap that I'm going to rotate my portfolio into these stocks that I've never been able to own before because of it. And I think that, again, gets to that underpinning of discipline and process around being able to make a decision during a very fast, I mean, crisis. And we said to, I remember with our clients, I always said to them, there's always going to be crises. They're always different. And there's always this line and columns of things you can't control, COVID, we can't control.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know, you also think about if COVID had hit in January, if it had really sort of broken, that any manager with quarterly liquidity that had 75 day notice or 60 day notice would have had, many would have had a run on the bank with redemptions because of the fact that, say, March 10th, nobody could get out for then to the first quarter. And by the time that you had the second quarter redemptions for those people with quarterly redemptions, market had already recovered. People were a little bit more willing to. Let things run. So just going back to structure, I think structure really matters. Gates, I think, have been very helpful to managers being able to think long term.”
2021-09-27 · Capital Allocators · Friends Reunion – Five Allocators Riff on Investing (Capital Allocators, EP.215) · IDENTIFIED FROM THE TRANSCRIPT · source