YouSaid · the spoken record

Rahul Moodgal

lines on the record: 91
first: 2024-09-26
most recent: 2024-09-26
sittings or episodes: 1
sources: podcast

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“I think I spent a lot of time. Early in my life being emotional about things. And when you're emotional, you focus on execution. And when you're rational, you focus on duration. And I think that's really helped me in terms of how I think about things. So just think about it. If you're trying to fundraise for someone and you're emotional about it, If you're long term and you're rational, you actually understand why people are thinking the way they're thinking like, okay, the time may not be now, but I'm going to have a long-term relationship with this person. You're much more rational about it. And I think that sums it up in a nutshell.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Three things I say always be a good person. Always go with your gut instinct because nine times out of ten it is right. And be the best that you can be at whatever you do. It doesn't matter what you want to do with your life, just always give it 200% and just even if you don't come out on top, but you're giving it your best, that's all you can do. And if you can be the best, amazing. So those three things, really.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's really hard to say because I don't think I'm a consistent reader. I almost get bored of reading the same thing again and again because I think you almost fall into a mindset where you believe everything that comes from one source if you read it all the time. Whereas if you're constantly changing what you're reading, then it broadens your mind. So let's say there's X source of news that I follow every day. You get into a mindset where you're always going to believe that. But if I'm following channel A1 day, channel B another day, channel C another day, then I'm getting different perspectives on things. The same way if I read magazine A, then magazine D, the magazine C. It sort of changes. For my kids, I want them to be as broad money as possible and I can't teach them that unless I believe that myself. So that's kind of how I think about it.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, personally, I think people that are not compassionate, professionally, I think people are just too short term. Everything's about execution, and life's just not about that”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Probably South Africa You know, as a kid, I learned a lot about South Africa. We did a lot of studies on it at school, but actually going there and seeing this history and what happened and going and seeing and touching everything was incredible. 20 years ago, I wouldn't have been able to do that. So going there now and seeing it always amazing. So understanding that struggle. And I have a lot of South African friends, but I walked away saying to all of them, I understand your psyche. Now, I understand how you think, how you think, the way you think, why you think like that, which I never understood before.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because you learn, you see things you'd never see and you see things that you hoped you'd see. But I love meeting people, tasting different foods, seeing things which have an impact on you, not just physically but emotionally, spiritually. And when you learn, it just makes you a better person. I think it questions everything you've believed. So I love traveling.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't sleep a lot I don't sleep a lot. Parvis takes a lot of my time and I have twins, so they take a lot of my time. So yeah, look, it's balancing and it's a lot to do, but we've got one life and I want to do everything that I can do. So that's always been me. I've always been like that.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Made me longer and longer term. Sometimes when you're trying to fundraise for a cause, you can apply for a grant 10 times before someone helps you. Same way when you're speaking to someone about investing in a manager, it can take 10 years. It's fine. Doesn't matter. So it's made me longer and longer in terms of my time horizon”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Really, really different, but it's much more about a personal approach. But I think it's trying to get people to have compassion and realize they're actually very lucky they should give to causes. So you're trying to approach it from both the cause point and the personal point. Whereas if you're fundraising for a manager, you're like, well, here's an interesting idea that you want in your portfolio. It's black and white. It's much more black and white. But a charity, again, you've got to just really help people understand what that charity is doing, how they're spending money, what the governance is like. Are they really achieving what they should be achieving? Is the money going to where it should be going? And so spending a lot of time with that, I think it's more intense to do the charity fundraising than it is to do fundraising for asset managers.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the difference, the key difference between nonprofits and profits is the ethics side of things. So I've been asked to be involved in a number of non-for-profits, but when I do the digging, there's a lot of ethical governance issues. So I think that's the first thing that I'd say that separates the two. The second thing is when you invest time with a non-for-profit and try to help them fundraise, you really need to find people who believe in that cause. But you have to try and find where there's a relatable story. So someone's had an illness, then it's easier to raise for that cause from someone who's had that illness, right? That has compassion for that. There's other causes like disability, which are harder because it's a minority group in society. People have misconceptions of what it means to be disabled, how much government help they actually get, what they have access to, what they don't have access to. So each of them is...”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Incredible. Melinda Gates even wrote about us and the work we're doing. It's incredible because it makes little girls believe they can achieve anything they want to achieve. Which in that environment, which is the bedrock of innovation, it's so male dominated and people forget that actually girls can do a lot. So we brought all of these girls that participate in those classes, the hidden figures movie, and they all are just so inspired. It's really, really important. I'm now getting involved in a charity that deals with mental health for young people, which is the issue of our generation. So there's tons and tons. I think last count was 12 different charities. And it's been said time and time again, if the elevator comes up to you and takes you up, you need to send it back down. And I think it's so important. There's only so much we all need and it's really important to give back. And that's a good thing. And I'd say that again, I spend so much time with guys who are doing what I do who are much younger, who are starting up. It's really important to help people.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I deal, you know, on Friday night, I had a fundraiser for the Mulberry Bush School, which deals with the most severely traumatized kids that you can imagine. There's 31 kids with 120 staff. on entrance 6% of them are involved in full-time education. On exit, 100% of they're involved in. So it's incredible work. So they do amazing work. So I've worked with them. I work with Wiz Kids, which I'm a trustee of, which deals with disability and providing mobility equipment to disabled kids from the moment they can move up to the age of 25, getting them jobs, all that sort of stuff. I work with the oldest playground in the UK, which sits between three estates, but what you call in the US projects, and it's been incredible for taming relations in that community and stopping rivalry and really helping people grow up in a harmonious community together. I am chair of the board of a charity in California called Scientific Adventures for Girls, which promotes STEM for girls in Oakland.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I've been involved in charity fundraising since I was eight years old. I've always had a thing for it. I think the biggest peeve I have in the world is that people are not compassionate. I think it's such a huge thing that us as a society forget about. We're all about us and about now and it's just not the way the world works, right? I think my parents brought me up to be compassionate and I think that's one of the greatest things they gave me. I studied development and that was one of my passions and that came through and when I got the job with Chris it was really utopia for me because my academic side of development along with working in finance all culminated in one place. So it was a dream okay was given all this money to great development projects all over the world and I was working doing what I love doing and so I learned a lot from that and then over time I've become involved in a lot of charities all of them actually specifically which I didn't realize someone pointed out to me recently are all involved with kids in UK”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I wish there were rules around that, but there are no rules around that. And it's fine. And again, for me, having learned from that frustration, there's one endowment I've known since I started in 1998. And I knew the CIO, we had great dialogue. We talked about lots of ideas and just coincidentally we were speaking about her portfolio. She wanted two types of managers. And I gave her two managers. She invested in both 300 bucks in one go. And she said, rule, it's taken 15 years, but we got there. And I said, it didn't matter. What mattered to me is that I could call you and you could call me and say, I'm looking for this. And do you know anyone? And that for me is when I put reality on that frustration, say, do you know what? It's fine because sometimes it takes that long.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Sit there and you can hear from my voice the frustration in it. You've done everything you can to that investor. And you even said, it doesn't matter if you don't invest, just please tell me if you don't invest why you're not going to invest or let's stay in touch and they just disappear at the face of the earth and they don't return. And it's fine. But I've learned now I'm old enough and ugly enough to deal with that and it's fine. The biggest frustration is this is all about relationships, this whole industry is about relationships and people still forget that. They think it's manager specific, but it's not manager specific. It's relationships. And people just walk away in a heartbeat without thinking about things. And everyone's invested time in that process. So it doesn't make sense to just walk away and leave it because they've invested as much as I've invested in it. It's fine if it ends up in nothing, but don't just walk away and say, hey, we invested all that time and nothing happens. It's fine. But think about that.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Invested because they understood it. I took a PM eight years ago to a group, a prime brokerage event, and I told him to do the same thing. And he said, really? And I said, yes, there were 20 people in the room at the beginning. There were seven at the end who really had a good, fruitful discussion with. Again, it's not a volume game, it's a quality game, right? I'd rather have five meetings in a day than two groups of 20 because the five one-on-ones are going to be much more fruitful and interesting than sitting there with 20 people, half of whom are asleep. People just forget that it's not about that.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“63% sure. So people take huge amounts of risk, huge, but there's some point where you've just got to step back and go, hold on. From my perspective, it's just always been honest to people and telling them and helping them understand these are the risks for investment in this manager. You've got to understand that. And I always try and spend the beginning part of a meeting saying to people, these are the reasons people don't invest with us, right? Because that way they understand what are the things that people have concerns about and what are the things that people don't like about a manager. And if you do that, then straight away you've told people, look, this is the situation. And if you want to do it, do it. Great story, I'll tell you. 2006, I'm sitting in a meeting room. I do two group meetings of 12. The first meeting I go in, I talk about a manager. Everyone may as well have been asleep. I even heard myself talking, this is so boring. I went to the second meeting. I thought I'm going to do it different. I said, these are the reasons people don't invest in this manager because of this, this, this, this, this. And out of the 12 investors in that room, eight of them.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“How long have you got? I mean, it's. There are so many I can't even start, I can't even begin to tell you stories about people leaving that I know are leaving but I can't say are leaving the market finds out they're leaving before they've left and all the rest of it investments in the portfolio shouldn't have been in the portfolio people claiming they're not there you know I had one firm I worked with where the manager refused to put the top position in the portfolio just forgot that it existed and just sort of talked about the rest of the portfolio, even though it was a big position. But that top name was something, it wasn't an equity position that they were investing, it was something else and they shouldn't have invested that. There was one manager I was helping in Asia who put his whole business at risk and he had a 63% short position which could have completely luckily it worked for him but it could have blown his whole business up and his fund and killed his”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the investor was so smart, he did the background, said, But you were invested. You told me you weren't invested. There's no hiding. If good investors do their work, they'll find out. So that's why, again, I go to a point, tell people about the mistakes you've made. Because if they understand what you did wrong and you've learned from it and you won't do it again, then it's huge.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Do you feel he's going to listen to you? And people dirt cough and don't do that stuff. Third thing is really, really spending time on the business side of things. And people quite often don't spend time on that. Investments can blow up, but the firm gets things wrong in terms of operations, you're dead and people don't spend the time doing that stuff. So I think it's really, really important to sort of look at both sides of that and people don't spend enough time doing that. But I think the psychology part of it is really getting someone's brain to understand what they're doing. And for me, post-crisis, I will say to everyone, only invest with someone who's blown up or been at a firm that's blown up. Because unless they've been through a tough time, you won't know how they're going to handle it, how they're going to treat their investors, how they're going to treat their team, are they going to stick to their strategy. And I think the right investors ask those questions and say, right, tell me about this. I've sat in meetings with a manager, for example, who said he wasn't invested in a certain stock that blew up.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“There are so many. I think there's two ways to look at it: it's the questions and it's the process of the questions. So I think some of the best questions have been about someone's personal life and background, what's made them the way they are, what's motivated them? What gives them the mindset that they have? And I think people don't understand that. They spend too much time focusing on the results.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“The perspective of all the meetings you've had, everyone wants to know what are the smart people ask, the better investors. What are some of the best questions you've heard ask of managers from the investors, asset owners that you respect the most”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Offices that I work with in New York, and he was telling me they have money with a manager they've been with since the beginning for 15 years. He'd analyzed 15%. But he said his investors had only received 9% annualized return. I said, well, how's that? He said, because people give him money at the wrong time and they take it at the wrong time. And I think that's the thing that people forget about this. This is a long game. It's a duration game. If you're not willing to think long term, just don't do it.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the regulation stopped me from getting compensated. But I think, look, the thing that everyone forgets about is if people are successful, it's good for our industry. I think everyone believes that, but so many people are so focused on themselves. And it's about the great to good, right? So when I see bad news about hedge funds or investments in the newspaper, I think it's a good thing. Why do I think it's a good thing? Because the people who really understand it won't run away from it. But the people who don't, they run away from it. And the kinds of headlines that you see, people are scared about volatility. They're scared about lockups. They're not doing concentrated managers. They're not doing this, not doing that. If you really dig into the headlines about who's saying that, it's not the great and the good investors. It's not the asset owners. Okay, it's the asset allocators because they're trying to protect themselves. And so I think I really, really am conscious when people run away from this stuff is actually quite often the best time to invest. I was just with one of the family.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, how about somebody in your shoes where you've had some great success that allows you to be patient to meet with people? Maybe you're going to help them. At what point in time do you start navigating, okay, I want to get compensated for this? Or I'm just taking lots of meetings and I'm happy to share my wisdom because I'm a teacher and that's what you are.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“And if I see people, they don't have that passion, then what's the point? Just, you know, there's a couple of guys I met recently. They're smart, but they don't have that passion. They're too focused on what investors think and trying to say the right thing to those people, trying to say to them what they want to hear. It's the wrong way to think about it, right?”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“To do it your way and to do it simpler. So don't get bogged down in all the nonsense that goes with all of that. So I think people, it's fine to have big ambitions longer term, but start small and start simple. The biggest issues, I'd think, the two biggest issues for startups is they overcomplicate everything and they don't take enough risk, right? It's quite ironic now you see people saying guys great, but he needs to perform. He's not taking enough risks. Obviously you have the extremes where people take too much risk, but I think if we think about all the big launches in the last 10 years, people have raised one, two, three, four billion at day one. How many of them are still around? Not that many. So a kind of explain that to people time and time again. Just go slow. Think about these guys who launched. They don't even exist anymore. There's no rush. Take your time. Do it properly with the right people. That's the only advice I can give. You need to have a passion for doing this. And it's about investing.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Listen, it's just not going to work. You just forget it. And there's other guys who are really good. There's another guy recently who just came out of a big shop. He needed an anchor investor. I helped him get an endowment on the West Coast, give him money. But it's a long, slow process. And understanding to him, investors don't think about what's their break even when they're starting, okay? Where are you spending that money? Why do you need 10 people? You don't need 10 people. This again goes back to the point about thinking about building your business plan. Think about your assets, your infrastructure, your people. And over time, as they grow what you're going to do with those. So I think people have a lot of misconceptions about what is the right thing to do. Anyone who leaves a big organization is a refugee, right? And when a refugee starts their life, they start with a lot less than they had before. Okay. Whether it's financially, in terms of possessions and things. So the same way I think about these guys like, well, you don't need that whole huge infrastructure and bureaucracy you had at your old place. You're leaving for a reason, okay?”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, in a situation like this is probably atypical in that there's a rapid degree of success that turned out in raising money even if you didn't know. How do you advise people that are struggling with the tension of making a business work economically versus trying to play the long game?”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Why are you in a rush your early thirties, early forties? You want to do this for 20, 30 years. So just wait for the right clients, build it the right way, do it slowly, and you'll be fine and leverage. It's fine to use leverage, but understand what that means. Okay, what are the impacts on that, whether it's leveraging the companies or leverage at the portfolio level? And people don't think about those things. So those are the pieces of advice I give to everyone.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Star, really feel good. So, my advice I say three things when they look at a presentation and say, really distinguish about how you're different because people always think they're different and they're not different. The second thing is talk about the mistakes you've made and the lessons you've learned because that has had an impact on how you think about investing. And the third thing is have a business plan because when investors invest, they're not just investing in a fund, they're investing in you and your business and they want to understand what your vision is, right? You know this from Proteg, the stuff that you did. You're always looking about people's businesses. It wasn't just about the manager. What's their vision? What do we want to build? And then I say to people the three things that will kill you are ego, speed, and leverage, right? And always remember that, okay? Don't have any ego because as much as you can feel that you're taken over the world, it goes in a second.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Called Black Sheep Alex Fortune based in Ireland comes out of Ennismore doing small and mid-cap Europe and we sat there for three hours just a few weeks ago deciding which investors he should take and which investors he shouldn't and that's a great situation to be in and I've said to him there are two types of investors there's asset owners and asset allocators and you always want to work with asset owners because you're speaking to people whose money it is who have final say the asset allocators it's not their money they're investing it for someone else so they're vulnerable to what that end investor is thinking and then you're the third leg in that cog and so you always have to wonder what they're thinking then what the people behind them are thinking you never really get to the end investor we sat down we went through this and thought about him i got him his coo and i was tough on him in terms of how he was thinking about stuff said you're not thinking about this the right way you need to do this you need to do that it's been great and we got some of the great enfs invested in there and he's going to be a rock”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I had such a call earlier this year from someone I really respect who emailed me and said, hey, I just met this guy. I can't tell if he's brilliant or naive. Can you meet him for me? I said, fine. At the same time, I got introduced to the guy by two prime brokers. I said, can you meet this guy? I met the guy. I put 45 minutes in my diary. I spent two and a half hours with him. And I think he's naive and brilliant, but just the passion he spoke with. He'd been thoughtful in every way about his structure, about his fees, how he's going to build a team out and everything. I spent two and a half hours with him. And then I've just helped him raise. He only took 300, but he raised $1.2 billion.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“And when you get a call from an institution, a friend, and said, hey, there's this new fund, can you talk to them? What advice do you give a new fund manager? So let's say it's not someone who's likely to launch with a billion plus.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Illiquid, if it delivers performance or hedge funds that have a hurdle, and so the whole world's changing. Everyone's thinking about these things. There's a lot of people for the first time I see in a long, long time that saying, I don't know what to do. I don't know how to think about things. Where do I go from here? What's going to happen to the world? They'd be much more thoughtful in different ways.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“They don't mean anything, but I think people are really good at being thoughtful about where those management firms don't need 200 million dollars of management fees. What are they doing with that money? So it's absolutely correct to make sure that people don't continue to charge the fees in that way. incentive fees are charged differently now so in the old days a long biased manager would charge from zero but today they are the charge over a long-term time horizon or over a hurdle over a benchmark and it's the right way to do it because ultimately we're here to make money but the interesting thing i think is now you're seeing this huge huge conflicts of the merging of long short long only private equity and the number of the people i speak today equity's equity they just have a bucket for it because in the old days the differentiation between them was duration and fees and structure and today they're saying well actually i'm quite willing to do long only that's more”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not there, they're not going to do that, they're going to find shortcuts. And I think people end up resenting actually working the way they're working. So I think we've got to be really careful there in terms of making sure that the right people get paid. And I'm sure people deliver performance, they'll get paid. You make your money from incentive fees anyway, not from management fees. Management fees are just...”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I've had less discussions about fees than other people have because I think let's take a step back. I think in the old days everyone talked about strategy. And I think people focused on the wrong thing. It was never about strategy. Certain today it's not about structure. And we talk about fees. People don't mind paying fees as long as they're structured the right way. So the old 2 and 20 charging every year, forget it. That game's over. But if you charge two and twenty, but you pay those incentives over three years or over a hurdle or over a benchmark, that's fine. And if you deliver the returns, that's great. Now, there's people who are coming out with all sorts of different ideas, management fees going down as assets grow, which is great. And I think that's good. But the key thing we've got to remember is that if you pay peanuts, you get monkeys. And I think it's really important that people are incentivized to work hard to deliver good performance, to do good work for you. And if the money's...”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So you've had such a wide spectrum of different types of investors and a number. What are you hearing when say there's some younger up-and-coming talent you want to invest with? And depending on the box, it might be a higher fee box and there's this big question of the value of active management and the price of active management. What are you hearing?”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Are worried about short term, the market is so myopic, so people have FOMO big time. So if you go back to 1999, 2000, if you didn't own the tech stocks, you weren't going to perform. And it's the same thing today, where people fear if I don't own certain stocks or certain sectors, even certain geographies, you go back three years, people worried about investing in the US. They wanted to diversify. But today, the US market continues to do well. And everyone's like, well, I need to stop doing active international and do passive US because it's going to do better. But they're being short-term about it. You have to think longer term. And if you put your eggs in one basket, that basket's going to break. So it's really interesting. So all those bad habits are coming back big time. And I sometimes feel that people are becoming more momentum, more short-term and just missing out on the bigger picture.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I worked with a long-owning manager in Asia. She's been investing in Asia longer than anyone, 25 years. We've built a great business and she retired earlier this year. We gave her the money back to investors. It was great. And it was nice doing it in a different way, doing it in a different regulatory authority based in Singapore. We did only manage accounts. So it was great. And actually being there to begin designing it all and doing everything was fantastic. Hadn't done that for a while. That was great. And then I've helped a number of guys, pro bono on the requests of investors, prime brokers, or those people reach out to me. And there's a huge amount of talent out there, huge, huge, huge. I feel quite excited, actually, because for the first time in a very long time, there's a lot of good guys coming out. There's a lot of younger guys who've worked their way up an organization or been the number two for a long time. And people feel they're ready now to sort of go out there. So there's so much to do. But there's also a lot of the bad habits coming back. I can see that people...”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Had to learn about the managers that I worked with before to a level that I never had to because I'm getting asked questions that I've never been asked and even today, 15 years on. The amount of work they do in the quality of the work they're doing is incredible. I love that because they're investing in a relationship. The longer that someone takes, the longer they're going to be with you. So there's one firm that I went to meet in 2009. They didn't invest until 2013. They took five years, but they invested heavily and strategically and they're long term, but that's great. Because in the old days, it was pick up the phone. The money would come, boom, then something goes wrong, the money's gone. So fundamentally believe in long term. And, you know, now duration is even more important to me than anything.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Completely different, completely different. If you put it in a time spectrum, I would say what we used to take six weeks now takes 18 months. The intensity, the level of information, the due diligence,”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“A tough time, and then I sort of think March, April time 2009, what am I going to do longer term? I thought, well, this has been great, but I want to kind of do this choosing who I want to work with. Ultimately, I work for Chris and Chris chose who was on that platform. And so I sort of started thinking about it. But the first thing I needed to do was to step away from that and think, what's the future? So I stepped away and I was lucky enough at that time for Parvis guys to come to and said we still want to work with you. So it was continuity for me. It was great. And they were open to me working for other people as well as long as there was no conflict. So that's really what I've done today. And I've effectively worked with Parva since 2005, first with Chris and then separately from Chris since 2009. It's been great.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“What they're doing and what they're thinking. So now I spend a lot of time with investors when I meet them understanding who they are, how they invest, what makes them think, what makes them worried, how they're thinking about the world. Because then you can sort of get into their mindset, are these the right people for us to work with or not? Do they really get what we're doing? Are they long-term? Are they patient? And the key for me is actually when you have a tough time, are those people going to give you more money or not? And if they're not, then it's not the right people.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Liability mismatch investing in managers they shouldn't be investing in not understanding the structure of the returns that those managers are giving them whether returns are coming from is it coming from stockpicking is it coming from leverage is it coming from concentration in one specific name people don't look at that they don't look at the correlation between the manager and portfolio and all of a sudden they wake up and they're like oh wow I've got 10 managers that have all got the same stocks no wonder I'm down so it made me realize also what I needed to do but also what investors should be thinking about and that again goes back to the point I made about Seth is sort of really”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“The principles that you thought you knew and that guided you prior to that were not really the ones that were going to guide you afterwards. Everything changed. And as horrible as it was, I still got bullet holes in me from then. It was the best experience because it really humbles you. It makes you realize you don't walk on water. No one walks on water. Nothing's sustainable. Nothing's forever, but you don't learn from success. You learn from failure, right? And this is the thing that taught me everything that I do today and really what's important and how to do this stuff. And I think I've really, really found who I am and how this should be done really. And I don't care how everyone else does it. I do it my way. And people still haven't learned from those times. It's incredible to me. But more than that, I also say most of the investors I do will are world class and they're phenomenal. But there's also a handful of people who still haven't learned from the allocator side, who are still doing crazy things like asset.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“I had people who would call me up and say, We've already approved an investment new, and they hadn't even met us. I'm like, that's crazy. You would have investment vehicles structured in such a way through swaps, through banknotes, through derivatives, all sorts of crazy things that people were doing to just get money into a manager. A couple of family offices I dealt with who I found out subsequently after crisis that they had portfolios that were levered four or six times for down 50% you head to zero you lose everything so one family I worked with you know they had six billion dollars they went to 1 billion dollars in wealth it's still a lot of money but people were doing crazy things absolute crazy things so I think reality setting it was horrible and it was tough but you learned about who you were and what you believed in and what your morals and your ethics were and really fundamentally going forward how you were going to do this job”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“There were four affiliates, one of them still exists, Parvis, who I worked with today, who are great. There was an India Fund TCI New Horizon. There was a financials fund Algebras, which is huge today. And then there was a Ex Fidelity guy called KDA Capital. So KDA was probably the hardest one to do. But I think part of that is because we'd just done an India fund and three months later we were doing another fund. So I think the volume of kind of reach out was a lot. And Parvis wasn't that old already and it was already European based. So that was probably the toughest one. It probably took us 18 months to get to a billion, which people probably today think, well, that's not bad at all. But in those days, it was a long time versus an algebra, which launched day one with 1.1 billion of demand. It's the largest sector fund launch in history. And we start with 675 day one and took it over time. So it was just a crazy time.”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's definitely different. So let's move it from, okay, the star manager that everybody wants to get in, yes, there's a lot of work, but at that point in time, you actually had the interest and the ability to call people and raise $800 million over a weekend. How about the affiliates? So now you have new funds. There's some implicit endorsement, Chris and TCI. What would the experience like? And you can either take them one by one, or why don't we start with the one that was the least appetizing on the surface to investors?”
2024-09-26 · Capital Allocators · [REPLAY] Rahul Moodgal - Master Fund Raiser (EP.87) · IDENTIFIED FROM THE TRANSCRIPT · source