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

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“The hardest part of the game was understanding that the game was getting played. Knowing where to go to access it, and then on top of that, having your board approval to let you do it. So to give you some examples of that, I joined Yale in 92. David was there in 85. There were some venture investments when they got there. It wasn't a full thing, but they loved it. They quickly understood the potential for that.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“The other piece of it, say, in something like venture capital, which you mentioned, access really matters. And that's where you could look at a Yale and say they had a first mover advantage 30 years ago. They are already in the top tier venture managers who don't take money from anybody else There are a lot of investors say that I have on the podcast that say if we can't get into those top venture, you don't have an allocation to venture, you have a group of managers, and you take what you can get, but you don't extend beyond what you believe are the very top tier because the dispersion of returns in that asset class is really wide and you only want to be and say that top core top.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think selecting managers in any asset class has that two pieces, right? So one is going back to David's first principles, what do you believe about what type of manager should outperform? There are some people who think fundamental discretionary investing with people who know their business is better than anyone else is the right way to do it. There are other people that think, no, you need to be large and systematic like Citadel or Millennium. There's no right or wrong, but you have to follow your own set of beliefs for what you think will work for your pool.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, that's absolutely right. And depending on the asset class, there are a different set of lenses. But just use that example in long short equity investing. The first question you have to ask is, is that a place you want to be anymore? Because it is a much tougher game, particularly adding value on the short side than it used to be”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“See both big opportunities, like you could think about hedge funds way back when, and then also small opportunities. So he thought about fees 35, 40 years ago before anyone else and when you could do something about it. It was him and Jeff Bogogel.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it absolutely does. I think when you think through the Yale model, it helps to understand what David was thinking as opposed to what you put a label on the Yale model and what that means. So one of David's brilliance was he started everything with first principles. What makes sense? What set of beliefs do you have about the world in investing? And then how do you go about applying that with extreme discipline? He kind of wrote about that in his book, and people look at that and say, oh, I can replicate that. But most people have trouble having their own beliefs and then sticking to them when the rubber meets the road in terms of execution. The other piece of it that David had that no one really could replicate is this deep belief in continuous improvement and incredible vision.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you have to think about what you're trying to measure. So, one reasonable benchmark, as you said, could be a 60, 40, or a 70 30. That's a really easy portfolio to create. And for sure, over the last 10, 15 years, it's been hard to beat. Over a longer period of time, maybe not so much. If you look at the types of assets that EL invests, and you can create a benchmark for each pool, and that allows you to do two things. It allows you to understand generally speaking, what is a reasonable beta for that whole portfolio.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“You want thoughtful diversification. So, if you start with the SP 500, or in this case, stocks and bonds, you only have two asset classes. Right. And the question was if you can find other areas of investment that can generate the types of returns you need for your liability stream, diversification becomes the free lunch. So the proper benchmark for those pools has to look a little bit like the underlying assets they're investing in.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“That's right. I mean, one of the early innovative beliefs that David Swenson had was that if you're managing a pool of capital for what's effectively a perpetual time horizon.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, the only caveat I would give to what you said is I'm not sure if you measured it properly, the performance is worse. Oh no, it's much worse. It's lower.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“And then when I came out, I felt like I wanted to learn more about business analysis compared to stocks, even though that was my passion for stocks. So I worked at a private equity firm, the middle market private equity firm, Yale had money with. And then I got wooed by a friend from business school to a larger one. And those were my kind of three formative experiences in direct investing.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“That was my true investment MBA. David didn't want me to go to business school. He said, You're not going to learn anything about investing. You just stay here for a couple more years. But I really had an interest in trying to work directly in markets. And so my summer job at business school, I worked for a hedge fund that Yale had money with. And that was the summer of 98. They were value-long growth short when Amazon went from $40 to $260 the same summer. Phenomenal firm.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“Course it was. But who knew at the time? This was back in 1992. So that was my initial foray into the investment business.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source
“I didn't know a whole lot about markets or stocks. I had a mild passing interest in it. But he mentioned in this class that they hired one person a year. And so alongside of Wall Street recruiting and my senior year, I interviewed at the Yale Investments Office and was fortunate to get that job and violated the two principles I had at the time, which was I wanted to be in a training program and I wanted to leave New Haven.”
2023-08-11 · Masters in Business · Ted Seides on the World’s Elite Money Managers · IDENTIFIED FROM THE TRANSCRIPT · source