YouSaid · the spoken record

Ted Seides

lines on the record: 114
first: 2023-08-11
most recent: 2023-08-11
sittings or episodes: 1
sources: podcast

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

“Think the importance of people. We're talking about governance and decision making, and it was something that David Swenson taught me early on. But you have to go through people in difficult times, experiencing good and bad behavior in those times to really understand that ultimately active management is a people business. And yes, you have to have all the investment discipline and all the rigor that goes into that, but they are human beings that are making decisions and that evaluating people as a frame for how you think about where you want to allocate your capital is probably the single most important thing you can do.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, the general advice I give, and I heard it phrased beautifully by a guy named Eric Resnick, who runs the largest private equity firm for travel and leisure. It was recently on her show. He was told early on, combined your vocation with your avocation. Which is just a thoughtful way of saying do what you love. I think that's general. The problem with finance and alternative investments is I would give advice that Howard Marks gives, which is if you want to have a great career in this space, start 30 years ago.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So early on in the book, he had this tiered system and he talked about the players that weren't yet on it. And Curry was mentioned as one he didn't think would get onto the list in a future edition.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So that's my favorite one this year. The one I've been reading most recently, which has been a long project before I go to bed. And it's a 10-year-old book, is Bill Simmons Book of Basketball. So, Bill Simmons wrote a book that ranked the top 100 basketball players, again, 10 years ago, of all time, using both stats and his incredible knowledge and judgment. And it is addictive and incredibly fun”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“It's by Will Gadara, who's one of the founders of 11 Madison, Danny Myers partner. And Really describes an excruciating thoughtful detail what it takes to be a creative customer, customer focused organization. It's a phenomenal book.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“I mean Yeah. Get and go. I mean, this has, you know, it has Mike Tyson on it. It has all these incredible athletes and entertainers that get involved with this guy. It's a fantastic show.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“It was really good. So, in addition to that, Had on the show last year named Brent Montgomery, and Brent said TV producer, he created pawn stars and duck dynasty. His latest show is called The King of Collectibles. Right. And it's Pawn Stars Meet Sports. A guy named Ken Golden, who's one of the largest sports collectibles dealers. And it is so, so good.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“There are one or two of those, but not that many. I think I would even go all the way back to my very first episode. So it was with Steve Galbreth who we mentioned earlier with Jack Bogle. And it was just this idea. I knew Steve. I knew he had a great story. And I sat down and recorded it. And I couldn't find the recording on the recording device after we finished. And it was so good. I just said, I can't believe this is, I can't wait to share this with people. And then I thought that that was the end of my podcast career after the first recording. And it took a good friend of mine who's a technical whiz to figure out, which actually wasn't that hard. I just didn't know how to do it, to extract the conversation from the recording device.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. And then there's this other. So you get notes from students, from friends who are outside. It's just entertainment. NBA professors you hear from.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“It's been entirely organic. We've done a few little experiments promoting and advertising. None of it's worked. So I've never really cared about it. It's kind of like what you said. I didn't think of it as a business when I started. I barely do now. And people have found it because it added value to their professional careers. So most of that audience, I would say, as far as we can tell, a little less than half is the institutional allocator community. And that spans endowments, foundations where I came from. It spans sovereign wealth funds, pension funds, incredibly global. And that reach, which I'm sure you know. It's hilarious, is so much wider than I ever could have imagined existed.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“It's mostly that, and it goes to what you said, which is I love having these conversations and have never advertised on the podcast.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“That's all of it. I still and always will source all the guests myself. We do get a lot of inbounds and we figured out ways of getting more people involved that I might not have known about. But it is entirely, hey, what do I think is interesting? Who would I like to talk to? And you go from there.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's Version of what I did my whole career, right? I spent time interviewing money managers with a very, very different output mechanism. So in the past, I'd have an interview with a manager and I would be evaluating them and I would mostly say no. But sometimes you'd say, oh, what do I think of them? And this is just, you have the same conversation. There's no evaluation. You get to be on everyone's team. And then you share it with people. And what's happened over the years is it's become the largest podcast in institutional investing. So that allocator community listens. And people have incredible experiences when they come on. And it's just so rewarding. It's by far the most rewarding thing I've done in my professional career.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“There's never been a shortage of high quality people to have on. And so I started that six years ago not knowing, certainly not thinking it would be a business. I used to joke, hey, Barry, we're going to have a conversation, share it for free. And just like the change bank from Saturday Night Live, we'll make it up in volume. Right. Right. Like it was sort of a dot-com click business”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“No one knew about. And so I did that and I started a podcast called Capital Allocators. And the idea was to be interviewing the people and make it be about the people and then of course about investment strategies focused on the allocator CIO community and some of their favored money managers.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“In 2016, which led me to be on a couple of podcasts. And I woke up one day and said, huh, maybe I'll run around and talk to my old friends. I had no idea”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I guess I was channeling my inner Barry Riddle some years ago. When I left Protege Partners, I wasn't sure what. I would do, and I had picked up a bunch of, call it consulting or advisory relationships. And I had written that first book about hedge funds, which led me to 20.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that's a very reasonable way of looking at it. Again, depending on your investment strategy, are we talking about boards of stocks? What about in private markets? What about an early stage venture and a hedge fund? Like there's all different ways that you can think about integrating it. And just like the problem with ESG, there's no one absolute solution that works for everything.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I think that's right. The question is what does a ton of capital mean, right? And the scheme of things, I think the point I would make is that the amount of money that's gone into these different diversifying strategies is much less than people thought it was going to be four or five years ago because it's all under this umbrella that each individual organization needs to figure out what do they care about and how do they want to deploy capital to meet that objective.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's evolved over the last couple of years is starting with sort of Greta Thunberg and then during COVID when ESG took on this label, people created a whole bunch of products that nobody really understood what they were solving for. And so not that surprising, it hasn't really taken off in the way that a lot of people predicted four or five years ago.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“By the way, no, you could have people from all different races that think exactly the same way because they were educated at the same places. So the question is if you care about Improving your investment results from cognitive diversity, which we can all agree the research shows make sense. Is that a thing that you measure? Is that a thing that you evaluate? How do you do that? So nobody really knows. And then governance. I'm not sure I know of anyone except for occasionally an activist investor as an opportunity set that is pro-poor governance.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So, the challenge is that the academic research shows that what you're trying to solve for is cognitive diversity. Social diversity is a proxy for cognitive diversity”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think it goes back to what we talked about at the onset about beliefs. Each institution has to decide how do they want to align their investing with the purpose of the institution? What are they trying to solve for? So lots of people want to solve for, call it sustainable investing. What does that mean? I don't know. But the idea of an environment that humans can habit for centuries seems like that resonates with people. So that leads to one set of sort of investment criteria that you could filter into your whole portfolio. The S is really about diversity. And that's important to a lot of people. It's certainly in financial services we recognize now that there are all these microaggressions that have been in place for decades. I'm not sure how that turns into an investment strategy.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“You can go back and say, remember Fang? And then Fang had two A's, and then it turned into fan mag. So these names have a way of taking off right back in the day. Rick in emerging markets Brazil, Russia, India, China. So, the problem with ESG in its first iteration was that the label that everyone ascribed to it wasn't anything anyone could understand.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“The compensation structures of the largest, most influential pools of the capital in the United States in particular are really challenged. Public pension funds that manage hundreds of billion dollars can be manned by professionals that make 80 to $150,000 a year. And you compare that with models that we've seen in Canada and Australia, where the investment professionals on those teams are Market competitively compensated, maybe a slight discount to the market”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Don't know the answer. It's way too short of a period of time to actually have any assessment. And on top of that, chances are the underlying investments were mostly the same as what they were before on the.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's Hartford Healthcare. David Holgrim is a CIO. I can't say I know exactly what happened on the inside, but they had a team that had delivered a good track record Assuming there was some friction between that team and the board, and the board hired Morgan Stanley as an OCIO, not only without ever consulting the team. They had an investment committee of knowledgeable experts, other endowment chief investment officers. That investment committee never knew that the board had done a search to replace the investment team.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Isn't it? So everything that Andy Duke talks about in decision making theory, if you can't make a good decision as a board, and we'll call that the governance structure, how do actual investment decisions get made, you can't have a good investment process.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, Carl is the chief investment officer at the University of Cincinnati. The allocator pools that have chief investment officers have on top of them a board. Maybe it's an investment committee. And that committee often is ultimately responsible for making investment decisions.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Are lots of risks that are forever and always out there. Fraud is one of them, but you can diversify away from it. So that comes out in position sizing and conviction and just making sure that you're thinking about all the things that could go wrong if you're taking a more concentrated position in something.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“The challenge with that is that fraud is fraud. So you're underwriting risks when you invest. And one of those is all the analysis you do isn't real. And the problem with it, and you could use the Made Off as an example, you could use FTX as a recent example, is that for every one or two percent of your analytical time that you're trying to figure out if what you see is real, the person committing the fraud is spending 100% of their time staying ahead of you”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Are real challenges in the profession of money management? So just take that concept. There's a lot of interest in permanent capital vehicles It turns out the permanent capital vehicles themselves are impermanent. You have closed end funds that trade at discounts that sometimes have shareholder pressure to open ends. You have holding company structures that have management changes. And then in the allocator community. These perpetual pools of capital, generally speaking, are run by chief investment officers whose average tenure in the seat is only six years.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So, if you're a money manager and you're sitting on cash and earning zero, let's just simplify the example, and the guy across the street is earning one, for those three years, you're underperforming. Yeah.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“You've done a lot better, right? So even take a five year period. You go one one. Or zero zero zero five five. You get more. Right.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. So if you look at that over a longer period of time and say, well, my opportunity set isn't just what's available today, it's what's available today and might be available tomorrow, and I can forego a tiny bit of return in the near term to earn a much higher return at some unknowable time in the future. That could have saved SVB. It could have saved First Republic.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, if you look at what happened with SVB Mismanagement of the balance sheet. So you go back a couple years and you could say, well, what return is available buying a treasury? And it turned out, if you looked at the market at that time, it was, I don't call it 1% five-year treasury, 10-year treasury. And so you say, well, We need to invest. Our deposits cost less than that. We're going to earn a spread. So we're going to invest at 1%. The problem of that, of course, is that if you said what return is available, let's say over the next 10 years and it was 1%, it turns out you were wrong because the right thing to do was to sit on cash.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, it's a huge problem, and it's an intractable problem because of the way incentive systems work in the asset management industry. Everyone across the food chain of capital is reporting to somebody else. And through that reporting, people have to generate performance. And so what's happened over decades is that the holding periods of every type of investment have just gotten shorter and shorter. And the problem with that is there's a cost to it. So there are a lot of situations where Investing with a shorter time horizon cost long term returns.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I've always viewed investing, as I think everyone properly should as a probabilistic game. And one of the things that happens when you're a money manager telling stories to raise capital is you need to show conviction. The best ones can blend that conviction with humility, but sometimes you find people that say things, it's not just investing in life too, where they're just sure what will happen, the outcome of this, that, or the other thing. And it just doesn't work that way. And so particularly now, there are so many things that are either common wisdom or that the consensus believes that have nuance to them. Where I look at it and say, I don't know what the answer is. Now, you could put probability weights to it, but I walk through in this piece a couple of different things where I just said, look, I don't know.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Everybody wins, especially the charity. I think it was Girls Inc. of Omaha who there's a side thing which we'll talk about another time, but it ended up being north of $2 million that went to their budget.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, if you're sitting with a billion dollars, I'm not sure you're giving away half of it just because of Warren's need.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Few billion dollars in a pot to do that, and there were one or two that signed up from that afternoon. Can I tell you something?”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“I really thought about it that much. I mean, for me, the biggest takeaway is the value of relationships And what a wonderful fortunate experience I had to just be able to spend the time with Warren that I did and to get to know, well, Todd Combs I had known and Ted Weschler and Tracy Briccool when she was there all coming to these dinners and just having fun talking about investing in markets. And so that for me, that was priceless. What was the price of the bet? Well, that was priceless to have, to have that time and had a couple of things that Warren and I did together when he was first starting the giving pledge. At one point in time, no one was signing up. And he called and he said, hey, you know some of these hedge fund guys. Is there any way we can round up some? Let's get.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“That's clickworthy. People are going to use. But the bet wasn't over yet. So it became an interesting thing. And it also completely changed the tone of what I had written. Sure. Because it made it look like a series of excuses as opposed to an analysis.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct. So I had written a piece something about nine years in, whatever. The title came Why I Lost My Bet with Warren Buffett. Well, that's click.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So that was eye-opening. The other was there are a whole bunch of different ways. Could say about the bet, about any investment manager Dissected what had happened in a way that I thought had a lot of merit. Things like short rebates, things like choosing the S&P versus a global index, all different kinds of things. And I put that actually, it was in Bloomberg. So here was my first lesson was I didn't know at the time that when you write a piece, you don't control the title of the piece.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Fortune. Fortune. So keep in mind the only definitive information about the bet was in Carol's two-page piece. Every other piece that got written had factual inaccuracies. Right.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So Carol writes this piece, and it's brilliantly done as everything she did was. And then massive amounts of media attached to it. Right”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Correct Correct. And she wrote about the bet in that as well. Her piece was two pages. I had said to her, How are you going to write an article about this little bet? And it was just so well done. Oh.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Of time. Absolutely right. The other is it was a fascinating exercise to see how the media works. So, I'll give you two little stories of that. Carol Loomis wrote a piece about the bet when we launched it. It was really a”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. You know, our friend Morgan Housel has written about that in just a beautiful way, telling that story. And it's time, right? It's both brilliant investing and time.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source