YouSaid · the spoken record

Scott Malpass

lines on the record: 120
first: 2018-07-16
most recent: 2018-07-16
sittings or episodes: 1
sources: podcast

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“Really enjoyed it. Really enjoy your shows. And it's been nice knowing you over the last 20 years or so. Thanks. Thank you.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or I'm going to let my parents down. And I'm not speaking about every kid, but I do see because they are high achieving young people and they are talented, I just hope that they value relationships, that they can enjoy the ride, and it's not about getting that next job. They're going to get that job. No problem. Then the top 1% of people in the world of talent and ability, you know, and so there's no problem, whether you're at Yale or Princeton or Notre Dame or you're going to get that job. So just making sure you really appreciate the journey fully and take care of what's important. I think that's something I would want to make sure I would tell myself even younger. I think I have to a point I've been here 30 years. It's not that hard to be another day. But it's, you know, there's things you would do maybe even differently.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I am starting to tell my students this. Just, you know, we all want to be successful. We all want to do good things in life. But make sure you enjoy the journey, too. I mean, I look at our kids today and they're so driven. They're talented. They're smart. They've been blessed with a lot of advantages. But sometimes I worry they're not enjoying the ride because they're just, they've got to achieve.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I know how to roll my wrists through the strikes onto my golf swing, better than I did ten years ago. I'm a better putter. Know human nature as you get older, you're, I think, more astute about human nature and building relationships and maintaining relationships and just the importance of that and having deep relationships with people and your family is really fulfilling. So I think as you get older, you just become more appreciative of all those things. That's one I think more about. There's a lot. Most things.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“That. So, I would very much like to continue to help them. And maybe 10 years from now, I'll help them even full-time, you know, or do something to really move that ahead.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I thought I might be a football coach at one point years ago before I started here. Thought I might teach teach and coach high school football, maybe went to college or something probably too late for that. I serve on the board of the Vatican Bank, I think you might know, was appointed by Pope Francis to that last year. I'm working with them on some transformational things in their asset management, which we're hoping to get done. I find that extremely attractive and fulfilling. We started this separate company, a not-for-profit called Catholic Investment Services, with the Jack Brennan from Vanguard, who's also chair of our board. We're trying to build that. We have a great staff there. My team is involved in helping get managers to be part of the program. But I think when you think about 4,000 Catholic charities in the U.S., about 150 billion aggregate dollars, most of it not particularly well managed. This is a problem across all faiths. You know, I just felt there's something I could do to help with it.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that worries me because we need them. We need them to change the world. We need them to show leadership. So I worry a lot about that, to be honest.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I fear that we have such bad leadership in the world today. It's hard for me to point to really great examples of leadership at any level. I think Pope Francis provides that in the Catholic world, in the faith-based world, in an international way, but there's some CEOs that are tremendous leaders. But boy, it's really hard to look around the world today and find really great examples of leadership. I worry about, and why aren't more of our best talents going to real leadership positions in our government? You know, it feels like we just need to develop a culture again where those things are really important. There was a generation that thought that that was the highest calling. I don't see that today. I talked to our young people, yes, some of them want to be in politics, but most of them don't. They find the discourse just, they don't want any part of that.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because I know when he became president in nineteen fifty two they asked him how he was going to make Notre Dame a great university. And he said, well, one of the things is if you look at the best schools today, they have the biggest endowment funds. So we've really got to grow our financial resources. And it was something he just really pounded the drum on for 50 years. And then the leadership since then is just tremendous. But for the endowment, Ted was, in my early days, too, being a younger person and just the motivation that the legendary father Hesberg brought to me, because we thought he was a rock star. He chaired the Civil Rights Commission. He could pick up the phone and talk to any president, the Pope. He could talk to anybody and get stuff done. It was extraordinary. That was pretty heady stuff for a younger guy, you know?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“watching them evolve my team in the investment office, watching them go through life and get married and have kids, and all of that has just been so rewarding. And, you know, I'll say to work with great leadership, you know, Father Hesberg and I were very close. He always thought the endowment was so important. He said, you know, every time we hit a billion dollars, he would call me for dinner. He said, we've got to celebrate. And I remember when he started with 7 million in 1952. So a billion to him was like unheard of. And then it was two. Then it was three. But I had dinner with him and Father Joyce, his executive vice president when he was alive, but then Ted for many years and even after the crisis, we'd already celebrated one milestone and then we came back. He was, we'll celebrate it again. And he just loved that. And I have to say, that was very motivating, the importance of the endowment to the life of the university.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm most proud of the way Notre Dame's advanced over the last thirty years I've been here, the team I've brought in, you know, I look at some tremendous facilities that are opening this fall. And I looked at a little map our facilities people showed me almost half of the campus has been built in the last thirty years in terms of square footage. Some amazing world-class facilities and programs. So just I'm just very proud to see Notre Dame, my school doing so well academically, having a real presence in the global dialogue on important issues. Our kids having amazing student experiences. My gosh, I think we had seven international programs when I was here. We had 45 programs and 25 countries. I mean, it's incredible. Two-thirds of our kids spend time overseas while they're here. Languages, you know, everything. But the team I've worked with is so superb, such great people.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, They were really good at getting us a sense of work ethic. I don't know if it was a phrase. It was more of a philosophy that, you know, we had summer jobs. I had a paper route. I worked in a plant 120 degrees. And when you do that, you want to go to school. They were very good about making sure we had a work ethic that we had to provide for ourselves, that we always worked, and it was great. We met a lot of great people and you had your own money, and I remember I bought a bike, you know, at 12 years old. And just that sense of self accountability and always supportive. I don't know if it was a phrase, but definitely a philosophy. You got to work and take care of yourself.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, there's been a lot. I'd have to say the championship season in 1988 was my first year back working. And the buildup, you know, the Miami hurricanes were sort of the king of college football in the 80s. And the way that we beat them here in 1988, when I think is one of the great college football games in history, Lou Holtz versus Jimmy Johnson. And every player that started on both sides was drafting the NFL. That was a hell of a college football game. And we were fortunate to come out on top and win the title then. That was probably the best sports moment if I had to pick one.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think there's any. I mean, I can't think of anything. A lot of favorite things to do, but I don't consider them a waste of time.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's not one I thought of. Favorite thing to do is a complete waste of time. I might have to think about that. What have other people said?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, they start. So Dave's was on that and a few others. And the owners wanted a group they could use to bounce ideas off of and get a structure going. That happened. And then they hired a full-time advisor.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“To have that perspective, if you're not thinking that way, you won't take those. And I have a lot of peers who don't do any of that. They just won't. And maybe that works at their institution. I don't think it really works here. And I think it makes my job easier if I do that. And then I've got emissaries all over campus who know the facts. And then they can tell their dorm mates or their department colleagues. Oh, I talk to Scott. Here's what they do here. We'll get him in to speak to us. There's a trust factor that I think that's really important there that I think we've developed, but you've got to keep doing it because these students turn over every year. You get a new group in. I've got freshmen already setting up meetings. Want to hear about our various policies. Yeah. Oh, boy. I'm going to, I'm actually going to go speak. I try to every year, but it's not sometimes every other year. Just do a broad talk to the student body, whoever wants to come.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Every day. It's every day. I wake up every day thinking about that my work today is going to be important to this place one way or the other. What I do today is going to be built on in the future and other things. So whether it's a student I see or a faculty member, just that being open, you know, hearing their perspective, they want to talk about social responsibility, which we have a longstanding social responsibility policy as a Catholic school, very rigorous. And it's nice for them to come in and want to understand that, but then they have their own perspective on that. But just being available, and, you know, look, we're busy, right? I travel a lot. I got a lot of meetings with managers, making time for that, but every one of those is important because we're a university and they need to understand how that all fits in. So just knowing that and taking those meetings and those half hour conversations,”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I want to close and move towards a couple of closing questions with something that I've thought a lot about. This is clearly a mission-driven organization, a very personal to you. How often when you're going through a tough moment, does that sort of come into your head? Is it every day?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Just the confidence that you can But that's why we work so hard to think about these other things we can do. But if it's just a few basis points extra year in each of these, it'll add up, you know. As long as you have that time horizon, that alignment with your managers and your board and the proper governance, as long as that's all in place and they understand that these things take decades, it'll be fine. The moment that breaks down, then you'll undermine the fund.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Maybe in more important ways than in the past. It's just harder. It's going to be. These jobs are much harder today, I think. I think they're a lot harder. There's so many variables to consider. And competition, I mean, I look at, gosh, I think there were 5,000 kids after the CFA in 1988. Now there's 200,000 a year. I mean, you look at the shifts in the market and the amount of talent that's coming to financial services. Even the distribution of endowment returns used to be very wide. You've seen this. Now it's so tight. It's like an amazing shift in competition in the industry. And, you know, a lot of pension funds, foundations, family offices have gotten sophisticated. Those were easy competitors to beat years ago. People are more aware of what it takes to be successful. And that's a good thing. That's a good thing.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, yeah. And so I just to develop scenarios that are a lot more severe than what they're doing and how that impacts their cost structure and fundraising plans, all of that. I really do complement our finance team at Notre Dame and our executive vice president, our finance committee of the board is tremendous. So they're on top of those issues and they take input well from me on where I think interest rates are going or what scenarios they should be running and market returns for the budget. Very collaborative, which I don't think is always the case at big institutions. I feel Notre Dame is in good shape that way, but there's just so many unknowns. There's just a lot of unknowns. I worry about trying to make a 5% to 6% real return in a very low return, slow growth world. That's why we're going to have to be, you know, we're going to have to use our edge that I talked about in ways.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, the amount of leverage still in the world from bad behavior in the past does feel to me like it puts a bit of a cap on potential economic growth in the world. There's just so much debt out there. And that certainly bothers me, 60, 40, the last 10 years was probably 5.5%. It feels to me like the next 10 years could be that or worse. Hopefully not. But so let's say that a 60-40 does five, five and a half percent again and inflation's two to three. How am I going to get 5 to 6 percent real return and the kind of returns we're used to? It's a challenge. I think it's a real challenge. I think institutions were spoiled in the 80s and 90s with the kind of returns and the real returns.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I like to take the whole person into account as how I lead my team and make sure that they're being nourished in a lot of ways. That's very motivating to them. That's why they stay. That's why they're enriched in their work and they feel that it's important. They feel appreciated. They're allowed to, hey, if there's a certain skill or tool or a conference or something they need to do for them, we do it. I'm pretty open to that because I think if you have a team that feels that they're being allowed to do. I think that's important. And so we're pretty good at that, I think, because we're aware of it and we talk about it. That may be a little different than some funds, some other institutions.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Speakers, you know, you want to help motivate people and keep them excited, help them evolve. We all need to evolve, right? If you don't think you need to evolve, you're already dead. You might as well hang it up because we have to evolve. I think I've done a pretty good job evolving myself in terms of there were certain things that I wouldn't have considered years ago that I find are very attractive today in terms of kinds of managers and approaches, the things we read to keep up with markets are very different today. How you get information is very different. Your work patterns are different. You have to embrace those things. Keep some of the core bedrock things that you know are important, but then being willing to evolve. So it's a chance for us to talk about all that as a team to make sure that we're on our game and just staying ahead of the pack. So a lot of conversation, just sitting and talking about this stuff. But I like...”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Tell you, I have such a great team that thinks a lot beyond the numbers, maybe because it's more like a family office. So we do a couple things. One, we do a very extensive investment retreat. We actually just do that on campus because if we're just going to be sitting in a room, we might as well do it here. It's pretty beautiful place. So let's just focus. So we do three days every year. We just intensely review our portfolio and structures and think about other ideas. But then we do an off-site, which is a little more leadership, self-development. We do pick three or four key topics and have our younger staff do a presentation on, okay, what's the effect of Amazon on retail, renewable energy, and how's that evolved? Artificial intelligence. We might go deep dive on some topic, and it's a great opportunity for the younger team to have that opportunity to present for an hour and a half on something. But a lot of the other time is sort of team building, self-development.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Not yet, not yet. Well, you know, one of the things that you've talked about at times is doing an annual off-site meeting to review what you've learned. I was wondering if you could share what some of those lessons have been.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Too conservative, to be honest, because we do such a great job of getting the right people. But I do think of that. So we probably could be a little more aggressive there. But I've been saying this for 10 years, and it hasn't happened yet. Not yet, not yet.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“One son over the other, one daughter of the other daughter. Some of that. And then, look, to me, even though I went from managing 400 million to 12 billion, to me, you know, 20 million is a lot of money. So, you know, I've still got the old thinking, you know, so maybe I should have done 50, but we did 30. I look at almost any private fund, how much can we afford to lose? I know that's probably”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“And it's just to pick on the first one. So is the debate about concentration, that's an easy concept for everyone to say, yeah, we should be more concentrated. Does the debate come in because you love your group of managers?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, like I've been talking about more ways to control the alignment. And maybe it's people younger in their life cycle.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so all those geopolitical stuff, of course, is massive. And, of course, we can't control any of that. So we talk about it. What will we do in a crisis? What will we do if the market was down 20, 30 percent? You know, sort of those sort of scenarios. I think all major investors think about that. But day to day, who knows, it's hard to predict. At least you have a sense of what you do, but there's not much else to talk about. I think we're focused more on, okay, how can we drive our edge? What is our edge and how can we drive it? You know, thinking about maybe we have too many managers. Maybe we should have more concentration. Maybe we have more conviction. Probably an area we probably could do better at bigger allocations to a fewer number of firms. The big endowments tend to have a lot of partners because they do so much private investing. But I think we're probably at the higher end of that. So that's something we talk about. More control activity.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because I wanted to be thought of as independent in the market. I didn't want to feel other partners to feel I was somehow beholden to that firm in some way or there was some conflict. And I wanted the relationship to be based purely on performance, not fee revenue. So we did one. We decided not to do it again. Could we look at it in a different way at some point? Sure. But right now we don't feel that's part of our strategy. So that's an example. We sort of went down that road. Oh, let's try that. And maybe we'll like it and maybe we'll do more of that. And we decided not to do it.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Expertise in relationships doing more directs, doing more co-investing, maybe having a bit of an in-house, even public portfolio based on various approaches, I think could be interesting and lower fee. And, I mean, there's some advantages there. But it's all about, I don't get hung up. Some people get, oh, we're going to do this and we're going to do half the funding and we're going to get really carried away. I don't think like that. I'd rather be a little more incremental in some of that, test it out, get comfortable, and then build on that. Sometimes we discard it then. There's been times where we went a direction very modestly, and then the markets changed or something happened. We said, no, we're not doing that anymore. I remember a good example at one point, it was very fashionable to want to buy a part of the GP or want to have an ownership stake or buy some of the cash flow of a hedge fund. We did one of those. And it's been fine. It's worked out. There's still a partner. It's been fine. But ultimately I decided not to do that.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, first of all, we're going to pick our spots. We're only going to do it where there's a real edge to doing it, and it only enhances our relationships. We're not going to do anything that's going to diminish or undermine key relationships. It's just that's not, that would be a huge negative overall. So we wouldn't even consider that. But look, we have a long-serving team with a lot of experience and knowledge. We have great partners. We should be able to use that in ways that others can't, that don't have those advantages. We have permanent capital. We have great institution. It's not going anywhere. We have a great board. We have alignment with our governance structure. So there should be advantages we have. We're sort of the ultimate long-term investor in many ways, right? And with tremendous advantages, and I think it'd be unfortunate if we didn't try to drive performance by taking advantage of more of that. So using our team and our history and our expertise.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I probably start to be a little more aggressive. A couple little sort of more subtle topics. One you touched on kind of internal management, which may or may not be tied to co-investing. You talked about the real estate example early on. You mentioned co-investing. I know there are some other institutions similar to yours that say, nope, that changes the nature of the relationship with the GP. We're not going to participate in that. How have you thought about the benefits and drawbacks of doing more direct investment?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“be very, very measured in putting that to work, especially where we're on the cycle. I think that's a big part. This is early 2009.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“So right now, so we're today Given where we are in the cycle, I would be very cautious. I'd be very liquid. I would keep a higher percentage of cash than we would have now that we do, because we have a full array of managers. I would layer into strategies as they became available that I thought were attractive. I wouldn't rush to put it to work. I'd get some basic things in place. Might even use some passive or some style passive indices like that to just affect some exposures. But I would stay more liquid to start as private equity opportunities became available that I thought were high level, I'd start getting involved. But then that'll take years. People ask me, I want to start a private equity program. How long is it going to take to get a mature? It's a decade. Maybe more, but it's probably at least that, right? So I would be patient and cautious. I wouldn't day one just put it in everything, have some master plan, and then just.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is a degree to which as I'm sitting here listening to you, it's just it almost feels like in a different context when you're talking to Warren Buffett that you've been here so long and have done so many things right that you're in a position that you can do things call it I don't know if I'd say on the fringe but the next interesting thing that not that many people could do or take the time to do. It's not sort of part of the core. So what would happen if you We're tasked with, let's say, a $1 billion pool of cash to put to work today. Maybe have a little staff, but not the kind of staff you have. How would you think about even at a high level structuring that similarly or probably quite differently from what you do here?”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. No, again, it'd be a handful of investors, and I'm sure there are others that are doing the same thing where there's a tenure there, there's a staff there that's been around. They've seen a lot of models of this, I think about my private equity team. So on the private equity side, Mike Donovan and his team, Tim Dozel and Brian Rona and those guys, they see so many patterns of success and failure. A GP loves the idea of hearing about that, especially if they didn't come from the asset management business, which can be an advantage, right? They know their sector. They know the people. So we love that.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean, you know, all of us have been through this kind of thing, but I'm seeing more of that. And I really enjoy that. It's fun to sit now with some really smart people who they don't really know our business that well. We certainly don't know theirs. But to come together to do something really special is really fulfilling. So we're seeing more of that in different sectors, whether it's Consumer goods, healthcare, energy, you know, definitely seeing more opportunities to partner with people in those ways. And that wasn't the case before. They shove with a pitch book and a fund that was take it or leave it. There was no collaboration. It was like, you know, you want in, you know, you don't kind of thing.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well we have a lot there's a lot of good ones and some great collaborations over the years. One of the things that I've really enjoyed is seeing operating executives who are real specialists in a certain industry and senior go off and raise, decide to go into more of the private equity space and use their expertise to really partner with companies in their field and they know all the talent, they know all the CEOs, they know how it all fits together. And we're seeing more of that. But collaborating with us on the structure of the fund, the alignment of terms, the size, that's fun for us because we know they're good. We know they're really good. But they've not done that kind of investing before. And so just that the fact that they call on us for ideas on how to structure the fund, what kind of terms should we have, how many LPs, what kind of LPs, all of that.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, that makes sense. Portfolio decisions. I was wondering if you could just, not needing to name names, but wax poetic about one of the managers in your portfolio in a way that maybe people would understand how special they are to you in terms of their fit in your portfolio.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“No one currency is overweighted. They're nothing bigger than 5, 6%. So it's not a real concern to me. But at least I know that. Because if I had 13 or 14 in a single currency, I might try to hedge some of that. But I don't feel a need to at 5%. So all of that does factor into portfolio decisions.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, yes. I mean, definitely. There's factor concentrations that maybe were more extreme than we would have thought growth or value or whatever the factor is. Yeah. And, you know, currency exposures tend to move around. Some of our managers hedge, some don't. We're not overriding that centrally at this point. We used to have a little more of a program there when we were more liquid in all of our exposures, but that's evolved. So yeah, you need more of these tools today too in a global world. I mean, look, we weren't, most people weren't investing in China when we started, right? Right. Now you've got exposure to the emerging markets currencies that I think 13 or 14% of our currency exposure is emerging markets now.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“But I really like where we are now in terms of that balance. I think we've got a really good balance there. We have all the information we need and all the quantitative assessment, but ultimately it comes down to a lot of judgment about the people.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we have a lot more analytical tools, the tableaux, different software things that we use. We purchase some outside things. We're definitely, you know, confirming our various exposures in much more sophisticated ways and our risk, you know, too, in much more sophisticated ways than we have in the past. That's relatively easy, given that we're still mostly have outside partners. And I think we have a good handle on all that on a look-through basis. I was always definitely more qualitative. I would look at people, get to know people, and I could tell if they were good or not. Over time, I became, I confirmed that more with analytical tools. In my own development, but I've seen my team do the same thing. Some of them came more out of the quant side or were more comfortable with that to begin with, and they had to develop the qualitative side of their repertoire. So you come at it both ways.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. So that's a lot of Skill we try to bring right to our work is trying to figure that out. It just takes a lot of dialogue, but it's still hard.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's so important because I used to always get concerned about that almost as a form of performance chasing, that yes, the performances come off. Now you think you've identified why and you think it'll continue. Well, maybe it will, maybe it won't, but you know you're coming out after they were just in a soft patch.”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source
“We've tried to get better at anticipating that by just asking the right questions. How are you spending your time? What are your hobbies? What do you like to do? Yeah, it's hard. Ultimately, you make judgments about their activities and focus. We try to anticipate and then move on while things are still good, but that's just the timing of that is very hard. We are doing that better than we used to. It used to be a little more after the fact. We'd see it and then say, all right, well, we're moving on”
2018-07-16 · Capital Allocators · REPLAY - Scott Malpass – The Fighting Irish's Twelfth Man (Capital Allocators, EP.25) · IDENTIFIED FROM THE TRANSCRIPT · source