YouSaid · the spoken record

Stan Miranda

lines on the record: 74
first: 2025-08-25
most recent: 2025-08-25
sittings or episodes: 1
sources: podcast

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“Keep your loved ones close to you. That sounds so obvious, but in a global world where we have the ability to send our children anywhere or they have the ability to go anywhere. And your friends have the same freedom, we all end up all over the world. And I'm at that stage where I'm trying to gather them back into one place. And in some ways, wishing I didn't have the truly global experience I had because I'm just living on planes, going visiting children and family and friends. So the advice I give to young parents in particular is don't let your kids go to university abroad. Keep them home. You'll never regret it.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so 1972, I'm thinking about university, and there's the financial crash, the markets crash. My father happens to be a stockbroker. Okay, this is a bad period for him. He sat down with me and he just said, well, first of all, that college fund, not so big anymore, but secondly, if you do anything in life or in university, have a skill that people will pay for and you will land on your feet. And that just always stuck with me. And so my first degree was in business and accounting. So took care of it. I think that's wonderful advice for anyone early in life.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“He was the CEO of ASDA, turned around Asda, energist, ITV, and he's currently the chairman of Marks and Spencer. And I worked with him when he was strategy consultant. And he has two unique characteristics as a leader. And one is that he just doesn't like doing anything ordinary, anything normal. He just strives to do things that surprise people out of the ordinary. And he taught me to always be brutally honest and face into the unvarnished truth. I'm the chairman of the board of partners capital. You don't go into the board meeting to convince them that our investment performance is great. You find the area that's not great. You spend all the time on that and you're honest about it and you focus them on it and you face into the unvarnished truth. That's what Archie taught me, which I think is incredibly valuable.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Number one was my second family. I was very close to Dr. Tom Eliason in Fresno, California where I grew up, and his wife, who is my den mother in Cub Scouts. And I spent so much time with them because their son was my best friend. Dr. Lyson was a leading cardiologist and he was my role model. The impact he had on me was to be calm and thoughtful. My family was full of drama. And so it must be the Portuguese DNA or whatever it is, but he gave me a sense of perspective and calm that compared to my siblings is distinctive. I think most of my work colleagues would say, really, I haven't noticed, but they have to understand what it could have been. And then secondly is a gentleman named Archie Norman. He's a serial CEO and chairman.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think invest in catastrophe insurance. So you already said we're long global warming. That's what catastrophe insurance is. But global warming has always been ahead of pricing. So that was a painful experience”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, I have a lot of those. I was asking my wife, for example, she said, well, plastic bottles, brown shoes. Entitlement is probably the one because people that are entitled, you don't succeed with them. I think you succeed with people who have a basic philosophy that hard work earns you the right to whatever you have and whatever you experience. So I believe in hard work and focused efforts to get ahead.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Clearly, people who mistake alpha for beta, and we do it all the time. Oh, we just did fantastically well in those biotech firms. It's got to be beta.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Okay, so outside family, family is first port to call outside of work. Every moment of free time is spent in sports, basically. And I do triathlons, so mostly just the individual running and swimming and cycling a lot, but I collect sports. You name the sport. The only one I don't do is golf because it would take too much time. It would take out all the other sports. But I do ice hockey, kayaking, every racket sport you can think of. I just love sports. So maybe the competitor in me, but it can't be because I'm not that good at any of them. It turns out focus matters. I may be a good skier. That's not the closest one. But I am a master of netten.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Privately owned management run, outsourced CIO, continuing to be one of the most highly respected in terms of thought leadership and investment management.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“I do think we end up doing some more direct investing. We see 1,000 managers a year in any one asset class. We just know so much about each asset manager. Most of us just sit there and perspire over all the opportunities we're seeing that aren't being exploited. So when I said the rule is we can only exploit those opportunities that haven't already been exploited by amazing people outside Partners Capital. There are a lot. And so I think we're going to cross that boundary at some time very delicately. We don't want to break the rule that created us of no conflicts. But I think there's some opportunities our clients should benefit from where they could see much lower fees and a lot more alpha if we integrate forward into asset management.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“First of all, we were a partnership. So it wasn't a single person running the investment decision. So it's not Andreas Halverson at Viking. It was Stan Miranda who built a partnership and initially three partners and now 19 partners. And all the partners were involved in many different specific aspects of the investment process. So no one person really mattered that much. But when I gave up the CIO role, Colin Pan was already doing it. So I think succession in all companies, not just investment companies, is about giving the job to the individual before they take it on. And then it just happens more naturally. And you always expect as the founder or whatever, some big fanfare, but it's always just a little tiny applause when the transition actually takes place.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's difficult, but not as difficult as you think. We always assume there's so much more to that one individual, that when they leave, it will be a disaster. It generally doesn't end up that way. Does succession work in all cases in terms of just the politics and no casualties, in terms of the partner group? No. Asset management firms, if they're good ones, they've really embedded their capabilities so deep in the organization that no one or two people really are that important, especially in the bigger institutional portfolios. If it's a team of six, succession is vitally important. And so you've got to really focus on that. But it's extremely difficult.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Love to hear what you've learned about succession of asset management firms. You've certainly seen a lot of it in the managers in your portfolio. You've undertaken aspects of it with some retirements, as you mentioned.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“By far, the biggest difference is our relationship with the asset managers. We're just always at the top of their table. And so we get every question answered. We get more transparency than the average investor. And we can come up with creative new ideas with them. The managers are getting bigger, but some of them are getting bigger and developing their capabilities even faster and we want to grow with those. And we're going to do that if we're close to them and we're contributing to their own capability improvements.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that is driven by a lot of momentum and psychological factors. If you look at the value of Bitcoin, it bears no resemblance to any value proposition or utility that Bitcoin has. Bitcoin has utility, especially in just moving currencies across capital borders. There's a real value to that. I'm not sure it's legal in many cases, but there's a value to that. It's not $40,000 a coin. That's clearly speculation driven. And we'll invest in cryptocurrencies when they reflect their utility or their cheap relative to their utility.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“On AI, it's too early. First high level question is how is it going to affect institutional investing, asset allocation, the timing of various moves, but then how is it going to affect basic fundamental research at the asset manager level? So we don't have an answer to that. And frankly, it's too early to tell right now, but we will be in front of that when it happens. On crypto, we have studied it and we have come to a decision not to invest other than in blockchain venture capital. The simple explanation is that it's like gold. It has no income. It has a market because people buy it. Okay, so quoting Jacob Rothschild, when the central banks are buying gold, you buy gold, ideally before they start buying. So crypto is the same. It has its pricing set by the scale of purchases.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, with a lot of this idea of taking on a new asset class, having a clean sheet of paper, in the last couple years there have been some opportunities to do that. There's the crypto and the blockchain world. There's certainly all the developments in AI. And would love to hear your thoughts as you've mapped out and looked at these areas, what you found.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“We've moved away from them early on. We invested in oil and gas. Just seemed it was a great landscape for real specialists, people who talk about reps. These were great opportunities for reps, but the commodity prices take you out. And all our due diligence had us being convinced by these managers saying that they hedged the commodity risk. They don't. The risk is just taken out too many resource companies. So not just oil and gas, but mining. It's a pretty difficult area to invest in unless you really take a 20-year timeframe and you live with this massive cyclicality. So we do not do anything in traditional resource areas. We are primarily focused on the energy transition. And those are effectively real assets in many cases.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Allocating for the next three to four years deployment, you may still want to be in all. So we do use generalists in some cases regional, but lately last six, seven years, we have invested almost entirely in industrial. So a lot of logistics, and that's been a big success.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Say, first of all, stay away from the double promote. You don't pay a private equity firm to pay a private equity firm. Okay, so we go with regional specialists generally and we build a national portfolio. Obviously, real estate has tax implications that make it hard to have a global portfolio. So our Europeans don't invest in U.S. property. But frankly, the U.S. property market is a lot more alpha-rich than European and Asian property markets. So our US clients, a lot of them being taxpayers, benefit hugely from a diversified North American property portfolio. And then our European and Asian clients benefit from European and Asian diversified portfolios that are pulling together regional and sector specialists. So then in terms of office and industrial and residential and hospitality, that's where you can almost time markets. Not quite.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we were early pioneers into that. You know what they say about pioneers? We started with insurance, including life settlements as well as catastrophe insurance. Quickly went into litigation financing, royalties, both music and drug royalties. And then one of our favorites is actually clinical trials and sports athlete financing. So that's the journey over about 10 years. We've been looking for this, the holy grail, which is high 12, 15% type returns that are completely uncorrelated to financial markets. And all of those strategies I just mentioned are pretty much uncorrelated. The problem with them is that they have limited capacity. As soon as I start talking about them on a podcast, then all of a sudden the alpha goes away. But in most of those categories, it has gone away unless they're in certain specialist areas. But it's been a good asset class. We can't.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“We probably should have allocated to the Citadels and Millenniums. Okay, we should have. We just always look at the fees. We have an acronym for everything, as you've highlighted. EROC is our excess returns on costs. The EROC is terrible. And another way to think about it is of the total gross alpha, how much do they keep? It's about 80%. We get 20% of the alpha. The alpha is huge, absolutely huge, but we could never get comfortable with only getting 20%. So what do we do? We allocate it to their spin-offs. And it's mostly citadel spinoffs. They've done very well. And they're closer to $220. And we get roughly 50% of the gross alpha. And we diversify. They'll be specialists and consumer or specialists in tech. And we have to create.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“When you think about that area, the 12 to 20 managers, as you define a manager can mean a lot of different things because so much of the assets have gone into these platform hedge funds that are effectively doing that aggregation diversification for you. So how have you balanced the ability to put capital in some of those strategies with, say, a millennium or a citadel an individual single strategy manager?”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Volatility. So information ratios of 1.2. And then what do you do with that information ratio? You leverage it. Okay. So that's how we invest in absolute return hedge funds. We create a very stable, solid stream of alpha and then we leverage it.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, first of all, we break them into two totally different groups hedged equities, anything with a B to more than 0.2 to the equity markets. We call it an equity manager. And frankly, the learning is the same as in the long-only equity space. But we do have more alpha from the hedged equity managers. They just tend to be deeper, more fundamental, and more specialists in a lot of cases. So our biotech managers are mostly equity long short. But in the absolute return space, first of all, more managers is better than view managers. There's a minimum where you debate whether it's 12 or 20 and you're all about diversifying your sources of alpha. So what we learned is you can create, say, with 20 managers with the right mix of strategies and very consistent source of alpha, call it three to four percent, not big numbers with only three percent or even two percent alpha of all.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we're now in the fund number two and number three space. That's our sweet spot. We have great relationships with certain names. And we get big allocations with them. And they've gone up to $5 or $6 billion funds, but it's still working. We can call that middle market these days. But the best solution is just know the middle market firms that are most likely to create spin-offs and watch. And we have a relationships with the search firms and others. So we get usually early heads up on firms that are leaving. We'll typically meet the management team the first time. We pass in most cases, not in all cases. We've done some fund ones, but generally we say we're going to watch you. Please hold some space for us, for fun two, and we're in fun too.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“With some inflation in there. So there's no real value added from the average private equity firm, even in the last 10 years, if you adjust for the public equity multiples and the debt aspects of it. So if you leverage small cap public equities, we think you could have done better. Okay, but here's dispersion. So there are big exceptions in the mega cap, large cap, all the way down to the middle market who would violate that observation.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is in a small company. The private equity owner can be a more value added owner than a huge Paulo Blackstone even bank capital today in CBC. They're buying multi-billion dollar companies. It's just harder to grow earnings. But then you look at the performance, you realize, actually they haven't done any worse than the lower mail market. But if you break out the attribution of that performance, the average private equity firm over the last 10 years earned 15% net, 7.5% of that was from multiple expansion, which is basically referencing the public equity markets, multiples. And those companies get valued in line with those. And so they went up by 7.5% because of the last 10 years growth of the public equity markets on the back of the global financial crisis. The other 7.5% is rather pedestrian average earnings growth combined.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, private equity turns out it's one of the asset classes you can actually pencil out the expected return. You just pull out an Excel spreadsheet, you put in what you paid for it in terms of multiples on earnings and what you're likely to get for it when you sell it. You've got the debt, the cost of the debt, you got the $2.20 in terms of fees, most important number of all earnings growth. Put all those together, certain assumptions usually get you to about 15% historically with nice growth of earnings and cheap interest rates. We just live around that model. We think about who can grow the earnings the most, what are they paying, what can they sell things for, and that has always pointed us in the direction of lower middle market buyouts and specialists software specialists, for example. And so we've always been focused on that. And we had the data to prove that it's harder to grow earnings in a big company than it is.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Under Cameron Mogadam. Then there are four groups of asset class teams. So equities, privates, private debt has its own team because of the complexities there. And then absolute return hedge funds and liquid credit. So those teams are roughly 12, 15 people each. We believe in specialization. We don't believe in the generalist model. And so that's all they do is live and breathe their asset classes.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Initially, first 12 years, we had all client facing people were also research people. Back to the kitchen table with Paul Dimitrik, we wanted the person across the table from us to know what they were talking about, okay, about this hedge fund manager and so forth. And so we kept that model as long as we possibly could. But now with $50 billion of assets and 360 people, it's not possible. And so about six, seven years ago, we created the client CIO. There are about 130 team members under the client CIOs. Each client has the primary point person, and they historically have probably worked on the research team during asset manager research. But today, that's all they do is construct portfolios and manage the risk of client portfolios. Then there's roughly 64 people that are dedicated to the research team. There's a central research team which does all the macro work.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Equity portfolio, the New World post COVID was one that was embracing technology, working from home. And you can imagine the sorts of things we invested in. They were both overcorrected companies like retail and airlines. We owned those and we owned the beneficiaries like Zoom. And so that was one that we just couldn't find anyone else doing.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, we started life, no conflicts here. So there's a high bar on that. But we do have such strong relationships with liquid and illiquid managers. So we do a lot of co-investing, private equity and private debt and property. And the liquid illiquid asset classes we've always done co-investing. It's been very successful. Our targets today are about 20% in there. But about seven years ago, we started co-investing in public equities. So with our long-haul closest manager relationships, we just talk to them about those positions and said, do you care if we double up on them? We're not going to pay you any fees. And most of them said no. You're a big investor, probably be helpful. So that's the closest we come to direct investing. The rule is that if we can't find it externally, we're allowed to do it internally. So we launched something on the back of COVID called The New World.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a portfolio construction solution. Turns out information ratio is probably the most important metric in liquid securities or asset classes. So how much alpha do you expect is the numerator? How much volatility, single standard deviation around that alpha? Do you expect in any one year? And if you think about that all the time and you're adding managers, theoretically what you do is you start with the highest information ratio manager, allocate as much as you think you can based on that volatility, maybe it's 6% of your total portfolio is a large allocation for us. And then you add the next highest information ratio. And then you look at what you own underneath that and you find, oh, we've got a lot of growth in there and you have to rebalance it. So that's the basic portfolio construction model for liquid securities. Credits a little bit different because there's a lot of tactical asset allocation in there. So we're always taking a view on the different sub-assets.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“How have you thought about in the public markets? You said in the old days you thought maybe Mr. Vanguard was the right solution. Then it was such an important part of your portfolio. You started looking for active managers. And now it's just increasingly hard with all these other factors to prove that you're adding value. What have you done about that?”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Telling into lower prices. And the opposite when markets go up, vol goes down and you're buying at expensive prices. So that's another aspect of it. Those are the main changes.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Mentioned too, so the risk management and then the tactical asset allocation. The third one is just focus on being a value added LP is very intense. We have actually a best demonstrative practices book. It's about 70 pages on post acquisition operating value added that we share with private equity managers. So that's a very meaningful part of it. On top of that, I'd say this focus on beta as a risk measure, not volatility is very important. A lot of people out there in our business think about the average endowment portfolio should have 10% standard deviation around its annual returns. 10% volatility budget, which makes no sense because what happens when markets go down, volatility goes up, all of a sudden your portfolio is over-risked. What do you do to de-risk it? You sell right after the market got cheap.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“If it's a manager with very constrained capacity, we have no influence over that manager. Over time, it's getting better, mainly just through relationships. We're working hard to actually add value to them, even though they've got limited capacity. We're competing with all their other LPs, and we will do things like educate them about the energy transition. We'll talk to them about the best incentive programs we've ever seen for hedge funds or how big an average compliance team is. So we're always trying to add value to those individual managers. But in the case of a lot of the private equity, private debt managers, especially if they're fund two or three, we're allocating so much capital to them that we can talk about separately manage accounts. We can negotiate terms. We're always trying to make sure we're only paying performance fees on the alpha, not the beta. And so those sorts of negotiations do take place.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we're all paying fees to active managers, and sometimes you're buying the package that they're delivering. Once you start disaggregating this composition of returns and understanding what the alpha is, what the beta is, how do you then go about applying what you've learned to the implementation of your investments in a manager when it relates to fees or structure?”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was one of our recent ones. We had as an unsuccessful one community banks going into 2023. Anyway, that's a level three tactical news. And those tend to generate at least enough alpha to pay for our fees, if not a little more.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So we break our tactical asset allocation model into three layers we call layer one is just absolute risk. So we convert all those different betas and factors into one measure. We call it Enub, equivalent net equity beta. It's equity-like risk. And we set the target, say, at 75 for a given endowment. And then when markets move it to 73, we rebalance up. Markets move to 77. We move it down. So we never time markets on level one. Level two, we have 13 asset classes or seven beaches, whichever way you want to look at it. And we've got targets for each one of those. Markets move those, or we have valuation views on level two, say one of the 13 asset classes, emerging market equities, if we think that's gotten cheap, we'll do something there. That's also very difficult to do. So we don't do a lot of it. The third level is sub-asset class, tactical mode. So those are where our managers are giving some insights.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“The main impact is that we will counterbalance certain overweights that we don't want as intentional overweights. So we have to have enough liquidity in the portfolio where we can use ETFs or in-text funds or futures that we can offset those. That's the primary implication. But there's a positive implication of having so much data on what we own. You can actually then fine-tune your allocation to different SKUs. If you think structured credit at this point in time is cheap, we can do something with that. We'll find a manager and add to them or whatever it takes.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Currency, you have to understand all of this because odds are when you got an overweight that was unintentional, it goes against you. And when it goes for you, you call it alpha and you don't pay attention to it. But you should. You should pay huge attention to any source of alpha. It's probably beta.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, number one is risk. You think about the result of an endowment model, you end up with pick a number 60, 200 managers. And you think you understand from their exposure reports what you own, but you don't know what you own just from their exposure reports. So you have to go really deep in knowing what you own. We understand the underlying stocks that most of the portfolios have. We get all that data and then we run it through our factor models to know where we've got over and underweights. Because one manager may be doing the same thing as for other managers and all of a sudden we've got tons of exposure to clinical trials risk. That's the single biggest change in the endowment model is the risk management. And that's what risk management means to us. We show our clients, we call the risk dashboard, which has over 16 different metrics, including the value and quality and momentum factors, as well as liquidity factors.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Send more senior people in that have seen this across a number of different reps, if you will, in the first instance. Some people you see the real person very soon, but not always. And so I'd say number of hours with them, and it's at least the fourth or fifth meeting. We do on average 300 to 500 hours of due diligence on the average private equity fund, for example. So later in the due diligence, we learn that, but also from references, we do a ton of reference, typically 20 references. So ideally with people that know them very well and will be honest with us about them.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Out the psychometrics, the shorthand is the best investors are square pegs. And there's lots of exceptions in the investment world. There's lots of investment rules that have exceptions. We see that more often than not, that they're not balanced individuals, they're workaholics. They're highly ambitious, energetic people, but they're highly analytical. high integrity, very trustful people. And so there's more than just the lack of balance. they're forces of nature really. They identify a goal in terms of what they want to achieve in terms of performance or where they see the insights and they're just going to walk through walls to get to that other side of the wall.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“And do all kinds of thinking about whether they did pass that test can they continue doing it? And by the way, there's some managers that didn't pass the test and we didn't invest with them because they didn't meet the alpha test that we just talked about, but we thought they would based on changes in a team and so forth. And so we went into that from having not passed the quantitative historical test, but they definitely passed the reputational test and just certain team changes made us think that they were going to be a success. So that's a quantitative screen that saved us in every asset class. We even apply it to private equity, the multi-factor, what we call beta replication tool.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“The second is we've got this funnel, we've got access across the globe to all these managers. So, guess what? Our funnel is really, really wide. And we narrow down the funnel with this triangulation approach, but more importantly, just quantitative statistics. And what thoughtful investors have realized is that you're not just being paid for equity beta. There's credit beta buried in there. There's inflation beta in there. There's certain aspects of sectors. There's factors. There's so many things in there. So take in public equities as the most obvious example. We run massive regressions against their historical performance, and we attribute that performance to certain factors that we can replicate and we create the multi-factor replication benchmark. And if they didn't beat that by a significant amount, they don't get through. That knocks out 95% of the equity managers over a five-year period minimum. And then we have to.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“Almost never invest in early stage manager without reps, so they've almost always come from another place. And our classic example is HIG. We love this manager. There are a lot of spinouts which got superb training. And not all of them have been terribly successful, but many have. And that's a classic example of what we love doing.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the early stages where you definitely are generating superior returns. So you want some of that, and it's uncorrelated to late stage and equities. But how do you access it, emerging managers? As it turns out, the second tier isn't necessarily any worse than the emerging managers. And the emerging managers are small enough where they can make the small investments in 50 different deals and they benefit from the home run, if you will, of early stage venture because their mind is totally focused on the unicorn. The total adjustable market has to be big enough that that company can realistically become a unicorn. And if that's your lens, that's a great investable emerging early stage manager model.”
2025-08-25 · Capital Allocators · CIO Greatest Hits: Multi-Family Offices – Stan Miranda (Partners Capital) · IDENTIFIED FROM THE TRANSCRIPT · source