Successful Investors

Kirk Sims is an opportunity builder. With a career shaped by seizing the right moments at the right time, Kirk works every day to create valuable opportunities for emerging managers. His multifaceted background cultivated guiding principles that spearhead his current investment approach. With the goal of leaving the industry better than he found it, Kirk works diligently to embark some of his hard-earned wisdom on the next generation of investment professionals. Kirk now heads the Emerging Manager Program at the Teacher Retirement System (TRS) of Texas, an initiative that focuses on building relationships with outperforming managers at the beginning of their life cycle. Sourcing top talent involves crossing paths with numerous up-and-coming managers. Kirk takes this opportunity to offer advice and mentorship—including to managers that are not currently positioned for an investment. Through supporting these managers in their early stages, Kirk is able to help the next generation navigate this industry, all while ensuring the retirement of Texas' beloved teachers. “You're finding talent early, you build that talent, you build that relationship, and those relationships are valuable for years. No matter how big that manager is, they remember that their early capital came from you.” In this episode we discuss: Guiding emerging managers Shaping the next generation Why execution supersedes intention Kirk was raised in a small town in Georgia but eventually moved to the nation's capital of Washington D.C. to complete a Bachelor of Business Administration at Howard University. Kirk then earned an MBA from the Columbia University Graduate School of Business. Prior to TRS of Texas, Kirk oversaw a manager of manager's retirement platform as well as an open architecture investment platform at Prudential Retirement. He was also responsible for the Emerging Manager Program at Teacher Retirement System of Illinois.   Resources: Teacher Retirement System of Texas | 2024 Emerging Manager Conference Teacher Retirement System of Texas | Emerging Manager Program Listen to Other Successful Investors: Katherine Molnar (Fairfax County PORS) | Diversification 101 Charmel Maynard (University of Miami) | Paying It Forward Aoifinn Devitt (Moneta Group) | Finding Clarity   Chapter Summaries: [00:02:21] A Business-Oriented Education [00:04:40] Starting at Brinson Partners [00:11:46] A Multifaceted Background [00:16:05] TRS of Illinois [00:21:48] Emerging Manager Program [00:24:55] TRS of Texas [00:29:00] A Day in the Life of Kirk Sims [00:37:41] Tips for Emerging Managers [00:39:32] Emerging Manager Conference [00:42:10] The Value of Mentorship   Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.      

Intellectual curiosity is a guiding principle for Katherine Molnar, CIO at Fairfax County Police Officers Retirement System (PORS). Katherine began investing as a teenager with the money she earned from summer jobs. She regularly questioned the critical elements of investing and often explored deep technical details in search of an answer. Eagerness for knowledge is a through line in Katherine's career, motivating her to find innovative methods to strengthen portfolios. Prior to working at Fairfax County PORS, Katherine spent a decade at AIG Investments (later Pinebridge Investments) where she became deeply acquainted with hedge funds and how they respond to various environments. This experience made for a seamless transition into her role at Fairfax County PORS, where the team was developing all-weather portfolios. Largely dependent on risk parity, this all-weather approach seeks to balance risks between numerous factors and maintain adequate performance regardless of the current state of economic growth and inflation. “So whether that is expansion, contraction, trough or peak, we try to have a portfolio where something is always working.” In this episode we discuss: Risk parity and building all-weather portfolios Intellectual curiosity The power of liquidity After graduating from the University of North Carolina-Chapel Hill with a Bachelor of Science in Business Administration/Finance, Katherine spent two years in Frankfurt, Germany where she worked as an intern for J.P. Morgan. Katherine continued to expand her global perspective in Warsaw, Poland and London, England. In the former, she helped launch the first retail mutual fund in the polish market; in the latter, she worked as Vice President, Senior Research Analyst for AIG. She then transitioned to her current position of Chief Investment Officer at Fairfax County Police Officers Retirement System.    Resources: Top Traders Unplugged | 7 Allocator Series: Learnings from Fairfax County ft. Katherine Molnar and Andrew Spellar   Listen to Other Successful Investors: Charmel Maynard (University of Miami) | Paying It Forward Aoiffin Devitt (Moneta Group) | Finding Clarity Ari Bergmann (Penso Advisors) | The Edge in Hedges   Chapter Summaries: [00:03:00] An Early Start to Investing [00:04:00] Studying at UNC [00:09:02] Hedge Funds at AIG [00:14:11] Liquidity and Financial Crises [00:27:28] Risk Parity and All-Weather Portfolios [00:40:38] Relationships with Managers [00:48:30] Transitioning to Fairfax County PORS [00:58:39] Intellectual Curiosity   Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.

Growing up in Trinidad, Charmel Maynard was exposed to a wide array of cultures and backgrounds—an experience that taught him the sky's the limit. Now, as CIO and Treasurer at the University of Miami, Charmel utilizes data-driven and DEI-focused methods to strengthen his investment processes. Throughout his career, Charmel stressed the importance of context when it came to investing, focusing on the “why” rather than just the numbers.  Charmel attributes much of his success to the mentors who guided him throughout his career. Now, as a seasoned investment professional, Charmel works to empower the next generation of talent in the investment world. The inherent value of different perspectives and various backgrounds can offer unique insights in the investment arena—a principle that Charmel practices in his day-to-day. Charmel brings humility and critical thinking to his leadership approach, with a focus on enabling his team to reach its full potential. Sidebar Quote: “No matter how busy you get, you always have enough time to give back.” ”Too many people get caught up with the outcome instead of looking at the process. We are very, very focused on the process, because we are really endeavoring to produce consistent outcomes over time.” In this episode we discuss: Charmel's transition from mentee to mentor Diversity as a performance driver Building an investment office similar to “the greats” Charmel began his professional career as an intern at J.P. Morgan. After graduating from Amherst College with a Bachelor of Arts in Political Science, he returned to the firm, progressing to the vice president position. Following a decade-long career with J.P. Morgan, Charmel made his way to the sunshine state as the Chief Investment Officer and Treasurer at the University of Miami. He remains an active member in and around his community, serving various organizations such as Mead Art Museum Board and Black Angels Miami Board. He also offers mentorship to University of Miami students through his program, Coffee with Charmel.   Resources: University of Miami | Investments Knight Foundation | Summary of Knight Foundation Women-and-Minority-Owned Managers Knight Foundation | Knight Diversity of Asset Managers Research Series: Philanthropy 2022   Listen to Other Successful Investors: Aoifinn Devitt (Moneta Group) | Finding Clarity Shannon O'Leary (Saint Paul & Minnesota Foundation) | Saying It Out Loud Karim Jetha (Longdean Capital) | Frontier Markets     Chapter Summaries:  [00:02:21] Growing up in Trinidad [00:03:45] Journey to Amherst [00:08:03] Interning at J.P. Morgan [00:10:42] Working Through the Financial Crisis [00:20:09] The Impact of Mentors [00:27:18] Transitioning to University of Miami [00:32:19] A Data-Driven and DEI-Focused Process [00:41:58] Mentoring Students   Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.

Aoifinn Devitt compares her career journey to a “patchwork quilt”, each with a unique meaning and purpose. Her continual quest for knowledge is evidenced in her approach to investing, community-building, and continuing education. Aoifinn currently serves as CIO at Moneta Group. She also founded The Fiftyfaces Podcast in 2020, a series dedicated to sharing the untold stories of individuals in the investment world.    As an avid learner, Aoifinn approaches life with a healthy dose of curiosity. Whether she is performing manager due diligence, interviewing a guest on her podcast, or exploring the role of psychological safety in decision-making, Aoifinn keeps asking questions until clarity is found. Her astute listening abilities help her to identify inconsistencies and uncover truth.    “I don't want to hear all about the wins, I want to hear about the losses, I want to hear about the lessons learned. I want to see some humility in that manager's discussion of what went wrong. I want to see realism.”   In this episode we discuss: 1.     How making the complex clear elevates the quality of communication 2.     The importance of bringing a healthy dose of skepticism to every conversation 3.     The benefits of continually seeking more education and knowledge 4.     How producing The Fiftyfaces Podcast has influenced Aoifinn's leadership style   Aoifinn Devitt is the Chief Investment Officer at Moneta, a St. Louis-based independent RIA with more than $20 billion in AUM. Her background includes investment banking, consulting, and corporate law. In addition to Aoifinn's formal education in business and law, she holds an MSc in Applied Neuroscience from Kings College London. She is currently continuing her study of neuroscience through a part-time PhD at King's College. Aoifinn continues to produce and host The Fiftyfaces podcast; this generous contribution to the investment community includes over 200 interviews with investment professionals.    Resources: ·       The Fiftyfaces Podcast | Turning the Tables ·       The Fiftyfaces Podcast | On the Pulse of a People-Driven Industry ·       The Fiftyfaces Podcast | Sustainability as a Recurring Theme and Driving Force   Listen to Other Successful Investors: ·       Shannon O'Leary (Saint Paul & Minnesota Foundation) | Saying It Out Loud ·       Ted Seides (Capital Allocators) | Compelling Narratives ·       Matt Earl (Shadowfall) | Policy of Truth     Chapter Summaries:   [00:03:40]   Simplifying Complexity   [00:07:43]   Working in Corporate Law   [00:10:50]   Experiencing Booms and Busts   [00:13:47]   Introducing Skepticism   [00:18:05]   Entering Investment Consulting   [00:23:30]   Launching Clontarf Capital   [00:30:23]   CIO at the Chicago Police Pension   [00:35:45]   Transitioning to Federated Hermes   [00:37:00]   Bringing Neuroscience to the Investment Arena   [00:42:43]   Producing Fiftyfaces       Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.

Shannon O'Leary is the Chief Investment Officer of the Saint Paul & Minnesota Foundation, a $2 billion community foundation. Since joining the Foundation in 2019, Shannon has thoughtfully implemented DEI and ESG investment strategies to create a portfolio that supports grant creation and includes investments that are in line with the Foundation's mission.   Shannon will call out the elephant in the room (and the elephant hidden in the room next door). Her emotional acuity and analytical prowess have served her investment teams well throughout her career—from sharing grades on manager DEI surveys to unconventional methods for manager due diligence. Shannon's proactive approach to resolving misalignment is underscored by an acute awareness that there will always be unforeseen challenges.   "Wherever you show up, show up as yourself . . . show up as authentically "you" as you can be. And that generally will bring out a more authentic version of the person that you're speaking to." In this episode, you will learn the following: 1. How the Saint Paul & Minnesota Foundation implements DEI and ESG strategies to maintain a portfolio aligned with the Foundation's mission 2. How the Foundation works with managers to help them grow into true partners of the Foundation's mission 3. What strategies Shannon O'Leary employs to detect when something is "not quite right" in conversations with asset managers Shannon began her career as an analyst at Dearborn Partners in Chicago after earning a bachelor's degree in economics with a concentration in high-energy physics from the University of Wisconsin—Madison. She recently started publishing a newsletter, Say it Out Loud, that looks at how to initiate change in the investment industry.   Resources: ·      Say It Out Loud | Have We Reached Peak Stupid? ·      Say It Out Loud | How to Not Get a Second Meeting: A Guide ·      Say It Out Loud | Why (Actually) Looking at Your DEI Survey is a Good Idea   Other Episodes You'll Enjoy: ·      Jennifer Heller (Brandywine) | Investing Renaissance ·      Dusty Granet (Green Trading Capital) | Green Trading ·      Patricia Lizarraga (Hypatia Capital) | The Female Factor         Chapter Summaries:   [00:02:57] Emotional Intelligence   [00:08:21] Unconventional Due Diligence   [00:12:57] Diverse Management Teams   [00:16:28] Journey to CIO   [00:20:59] Effective Investment Decisions   [00:30:42] Community Foundations   [00:35:29] Saint Paul & Minnesota Foundation   [00:43:16] Partnering with Managers   [00:47:53] Saying It Out Loud          

As host and founder of the internationally recognized Capital Allocators podcast, Ted Seides gathers insights from an elite group of asset owners and asset managers. Ted's own story encompasses a wealth of stories. His unique skillset includes capturing the essence of a firm or person in a genuine and compelling narrative. During his 20 years on the investment side, Ted listened to numerous manager presentations at Yale and worked with a subset of managers at Protégé to help them build their story. Recognizing the unique value in developmental discussions with both CIOs and managers, he decided to capture similar conversations and spread the insights he so valued with the broader community—via podcasting. Capital Allocators was born. This well-connected and well-nurtured approach to learning about investing leaves Ted with a substantial knowledge on current industry trends, best practices, and new developments. In this episode we cover: lessons Ted has learned from Capital Allocators how hosting a podcast is similar to investing capital what motivated Ted to build the multi-faceted Capital Allocators ecosystem Ted Seides, CFA is the founder of Capital Allocators, an ecosystem that includes podcasts, events, education, and advisory. Ted launched the Capital Allocators podcast in 2017. From 2002 to 2015, Ted was a founder of Protégé Partners LLC and served as President and Co-Chief Investment Officer. Ted began his career in 1992 under the tutelage of David Swensen at the Yale University Investments Office. Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.

Marcello Sallusti leaves very little up to chance. His success as an investor comes from an incredibly principled and methodical approach to investing. Decisions are qualitatively evaluated and quantitatively researched during the consideration stage, then reconsidered before execution. While data collection is a necessity, Marcello finds the most meaningful insights come from connecting the dots.   Adding to the challenge, the ever-accelerating information cycle leaves little time for evaluation before a decision must be made. In Marcello's own words, “Not taking action would be to double up on your mistake.”   In this episode, we discuss: hard and soft factors to consider in due diligence the fine line between conviction and stubbornness the evaluation and evolution of a strong investment thesis   Marcello Sallusti is founder and CIO at Engadine Partners, an alternative investment advisory firm based in London. Prior to his role at Engadine, Marcello spent 16 years at Egerton Capital, concluding as Deputy CIO.  He earned his Master's degree in Accounting and Finance from Università Bocconi in Milan.           Disclaimer: Information provided by SEI through its affiliates and subsidiaries. This information is for educational purposes only and should not be considered investment advice. The strategies discussed herein are complex and are not suitable for all investors.   All content in this podcast reflects the opinions and views of the speakers. The guest(s) on this episode did not have a client relationship with SEI Novus at the time of recording.

Short specialist fund manager, Matthew Earl, unearths companies with suspicious or unreliable business practices. Putting his money where his mouth is, Matt shorts these snaky companies—sometimes sharing his research when there's a strong public interest.   Matt's career is filled with research projects in which he delineated what many others struggled to see, from identifying flawed business models to recognizing signs of aggressive accounting. Among the most public of Matt's endeavors lies Wirecard; he started raising concerns about the payment processing company in 2015—five years before Wirecard filed for insolvency. Matt dealt with repeated cyber hacking attempts and ongoing surveillance due to his publicly shared research opposing the company.   In this episode, Matt shares and expands upon the three key elements to short selling: have great thesis utilize strong risk management identify the catalysts   Combining his skill in research with his ability to identify a good short, Matt founded ShadowFall Capital & Research LLP in 2017. The “Capital” portion of the firm is a single strategy pan-European market neutral fund that exclusively focuses on short alpha. The “Research” portion publishes and sells investigative reports; the most recent publicly available publication raises concerns about Civitas Social Housing PLC.    Matthew Earl is Managing Partner and CIO at ShadowFall. Prior to this role, Matt managed funds at a family office. He began his career as a junior economist at the Royal Bank of Scotland, followed by working on the equity research side at Investec Securities. Matt supported the research offering at Charles Stanley Securities and also conducted research at Matrix Capital Markets Group, an investment bank in London.   Please note that this episode was recorded on April 28, 2022.     Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest on this episode had a client relationship with SEI Novus at the time of recording.    

In 2007, Dr. Ari Bergmann saw an iceberg approaching. Looking at the housing market, Dr. Bergmann's firm (then called Sentinel Advisors) noticed the leverage of the banks increasing and the banks' exposure to the housing market increasing—but no one seemed to be hedging the risk. After recognizing the house-of-cards situation, the team decided to open their own overlay, betting against the banks.   Dr. Bergmann is adamant that a strong hedging strategy is not designed to be an “insurance policy.” After all, the insurance companies are the only ones making the money, not the policy owners. The ideal strategy must also make money over the market cycle—a criteria that many hedge funds fail to meet.   Always a student of the market, Dr. Bergmann shares, “The market is greater than you, and that is something that always informs you. If the market tells you that you're wrong, get out. Reassess.”     Ari Bergmann is Founder and Managing Principal/CIO at Penso Advisors, LLC. He leads the firm's investment committee and manages various Penso funds and clients' mandates. Starting his professional career at Price Waterhouse as an accountant, Dr. Bergmann then worked in precious metals and commodity training at Drexel Lamber Trading Crop, followed by a twelve-year tenure at Bankers Trust. Prior to his current role, Dr. Bergmann served as CEO of Sentinel Advisors, LLC; this involved management of multiple funds with strategies including derivatives arbitrage, fund of funds, and risk overlay. Dr. Bergmann holds a master's degree in Liberal Studies and a Ph.D. in Comparative Religion, both from Columbia University.   Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest interviewed on this podcast was not a client of SEI Novus at the time of recording.  

As a bond analyst with AIG Investments, David “Dusty” Granet was charged with hedging the insurer's risks associated with the European carbon markets. He quickly became hooked with the asset class. His passion for geopolitical supply and demand, as well as the environmental attributes of these up-and-coming markets, inspired a new career path.   The shift in social and investor expectations towards climate action requires companies to confront and adopt measures to mitigate the impact of greenhouse gases to our planet. Investors in this space aim to use the potential of carbon and renewable energy to combat climate change, protect the environment, and direct capital to investment opportunities correlated with the most substantial impact. Green Trading Capital is at the forefront of investment firms identifying uncorrelated investment opportunities in the environment commodities space.   Started by Dusty, Green Trading Capital allocates capital across environmental markets, using an opportunistic, active portfolio management approach. The firm's exposures include regulated carbon markets, renewable markets, and voluntary markets. Factors such as regulatory arbitrage, supply and demand, relative value, and liquidity play a large role with regards to investment decisions.   While discussing the opportunities in the nature-based offsets space, Dusty shared, “What is best has probably not been created yet. The frameworks are always changing. We're always getting better in this space, so we think the offset market is really still in its infantile stage.”   Prior to his role as Chief Investment Officer at Green Trading Capital, Dusty worked at BGC Partners / Cantor Fitzgerald, Evolution Markets, and AIG Investments.     Disclaimer: This podcast is not investment advice, and should not be relied upon as a basis for investment decisions. All content in this podcast reflects the opinions and views of the speakers. This podcast is for informational purposes only, without representation as to accuracy or completeness. The guest interviewed on this podcast was not a client of SEI Novus at the time of recording.  

With Tanzanian heritage, a UK education, and a deep interest in emerging markets, Karim Jetha founded Longdean Capital. Karim's early career focus on MENA, and his experience living in the region, informs his current investing strategy. Longdean has the operational infrastructure to invest primarily in companies solely listed on local exchanges, which Karim believes gives them access to the best opportunities. In addition to its focus on frontier and emerging markets, Longdean invests with a bias towards companies with a positive social impact, such as Leejam Sports. Recognizing the increasing participation of females in the workforce facilitated by changing social norms, this chain of fitness centers opened up the first set of female gyms in Saudi Arabia. Karim's deep understanding of the nuances in the MENA market inform his appreciation for the diversity and quality of businesses within the region. He shares, “In order to make outsized long-term returns, you have to think differently.” Though this contrarian way of thinking may not appeal to all, Karim values remaining true to your own convictions and trusting that the right investors will follow. Karim Jetha is founder and Chief Investment Officer at Longdean Capital. Before founding Longdean Capital in 2018, Karim spent nine years at Blakeney Management, where he was Partner, Portfolio Manager, and Head of MENA Coverage. Prior to Blakeney, Karim was an Associate at Goldman Sachs in the Investment Banking Division with stints in London and Dubai. Karim has an MA from the University of Cambridge where he read Economics.

In 1999, Val Zlatev stumbled across a group of traders while attending a physics conference in Chicago. Enamored by the energy in the room, Val decided to abandon his boredom in physics and enter the exciting world of finance. This career pivot provided Val with exposure to valuable mentors and experiences, enabling him to further refine his philosophies for both investing and life. Among his favorite insights, is an early mentor's advice, “Simplicity always trumps complexity.” This wisdom continues to impact Val's investment decisions today. As Senior Founding Partner and CIO at Analog Century, Val focuses on playing to his strengths, acknowledging the certainty of uncertainty, and cultivating the best possible performance from his team. No matter the outcome, Val chooses to focus on lessons learned. Speaking of a fund that closed, Val shares, “First and foremost, the learning was find a way to unwind. Don't allow stress of the job to burn you out. PMing is not a sprint. It's a marathon. And burning out doesn't help anybody.” Val Zlatev holds a PhD in Physics from the University of Pennsylvania; his thesis focused on the early moments following the Big Bang. Val's professional experience includes McKinsey & Company, MSD Capital, and Kingdon Capital. Prior to Analog Century, Val served as Partner at Quentec Asset Management.

When a terrible accident left Joe Peta in a wheelchair and out of work for several months, he took the opportunity to contemplate his 15-year trading career. Exploring the overlap between asset management, sports betting, and the analytic revolution taking place in sports (primarily in baseball) led Joe to write TRADING BASES: HOW A WALL STREET TRADER MADE A FORTUNE BETTING ON BASEBALL. Both baseball and finance are data-rich, yet Joe observed the finance industry's use of data paled in comparison to baseball's cutting-edge implementations. Reducing noise and isolating players in performance metrics provided a framework for baseball that quickly traveled to other sports; Joe carries this exact framework over to finance and portfolio managers, identifying three key metrics for predicting investor success. After the publication of his book, Joe served as managing director at Novus. Most recently, he worked for one of largest multi-manager long/short equity firms in the industry, creating a multi-factor framework which entirely explains PM alpha in terms of skills exhibited, not factor attribution. Speaking about his book, Joe shares, “[It] really does ask a very serious question that underlies all of the stories, which is why is the industry of baseball—which is worth a fraction of the finance industry—why is baseball so much better at using their data to evaluate performers [and] compensate their highly talented individuals than finance?” Joe Peta has enjoyed a 25-year career on Wall Street, having spent the first 15 years as both a buy-side and sell-side equities trader; this included a 12-year stint at Lehman Brothers as head of biotech trading in New York before moving to San Francisco to run the trading desk at a Lehman-sponsored long/short equity hedge fund. Joe holds an MBA from Stanford University and a BS in accounting from Virginia Tech. His book, TRADING BASES, received substantial critical acclaim and was a best-seller in a number of categories; during 2013 TRADING BASES was named a Top 10 Business book by Amazon.com, a Top 10 Sports book by Publisher's Weekly, and a Top 10 Non-Fiction book by Fortune.   “TRADING BASES is available at https://www.amazon.com/Trading-Bases-Fortune-Betting-Baseball/dp/0451415175.”

15 years ago, Patricia Lizarraga started noticing that women outperform as both CEOs and investors. The reason is simple: due to various institutional barriers, women have a more difficult time rising to the highest executive ranks in both financial institutions and non-financial corporations. This observation evolved into an investment thesis that Patricia calls “The Female Factor.” According to Patricia's thesis, when a woman can overcome these well-documented additional barriers and rise to the highest executive ranks, by default, she must possess additional leadership and performance characteristics versus the average executives who did not face the same barriers. Today, the vast majority of senior executives across all industries are men—and thus, a unique investment opportunity arises when one considers the consistent track record of female outperformance. Patricia Lizarraga is the founder and managing partner of Hypatia Capital, an asset management firm focused on sponsoring female CEOs and investors. Hypatia is built on Patricia's passion for finance, as well as her mission of supporting fellow women in leadership roles. Most recently, her team has focused on building a hedge fund index that isolates women-lead firm outperformance. (The Novus study mentioned in this episode about women-led fund outperformance can be found here https://www.novus.com/blog/celebrating-women-led-funds.) “It is difficult to isolate performance in something like a private equity transaction because it's both the investor and the CEO, as well as their respective teams that create the value,” Patricia explains, “[With] hedge funds, it's a different story because there's one decision maker who has final responsibility for pulling the trigger. So, when we started looking at hedge funds, where you have this ability to isolate decision making, that's where we felt we could really isolate the female factor.” Patricia Lizarraga was born and raised in Peru. She attended Yale University and went on to receive an MBA from Harvard Business School. She began her career as a merchant banker at Allen & Company and Donaldson, Lufkin & Jenrette. In addition to Hypatia Capital, Patricia serves on the board, and chairs the Audit Committee of Credicorp, Ltd., and Banco de Credito del Peru, the largest financial conglomerate in Peru.

A fascination with marketplaces and a knack for math is what pushed a young Paul Britton to explore the world of derivatives. However, it was his talent at chess that impressed a senior trader at his first interview with the London International Financial Futures Exchange. Paul was awarded the job, and while at LIFFE he discovered options—a type of derivative that would eventually become his specialty. Paul Britton is the founder and CEO of Capstone, a $9 billion global alternative investment management firm that specializes in derivative-based strategies. The core of Paul and his team's strategy is a deep understanding of volatility. While most investors would be wary of options and the surrounding complexities, Paul uses this complexity as an advantage to spread exposure across all asset types. In this episode, Paul talks about the evolution of his derivative-based strategy, as well as Capstone's origin. Adapting to a changing marketplace and constantly evaluating investment strategy is what Paul says has brought much of the firm's success. “I hope in five years' time, I look back and critique the way I'm doing business today,” Paul explains, “That, to me, is the exciting part because Capstone is such an innovative place to work. We're always challenging the ways that we are thinking about investing, risk managing, [and] about the efficiencies in our processes.” Many investors have previously viewed volatility as merely a defensive mechanism during times when the market was becoming more volatile. The emergence of volatility as an asset class is something more recent, as investors like Paul make a strong case that you can actually build a complete portfolio using only volatility and derivatives contracts. Before founding Capstone, Paul began his career with Saratoga Limited, trading options on the London International Financial Futures and Options Exchange (LIFFE), and co-founded Mako Global Derivatives in 1999. Paul received a B.A. degree in European Business Finance from London Metropolitan University. Paul currently serves on the Boards of the US Soccer Foundation, The Tate America's Foundation, and Friends Seminary School in New York City.

A book recommendation during undergrad was all it took for Patrick Quinn to uncover his aptitude for investing. As a biochemistry major, Patrick had to then take an unconventional road into the investing world—it was a road that would introduce Patrick to key mentors who were invaluable in helping him on his path as an investor, ultimately starting his own fund. Patrick Quinn is the founder and CIO of Quinn Opportunity Partners LLC, an investment advisor with approximately $650 million AUM. Patrick started Quinn Opportunity Partners in 2011 after he discovered an enormous investment opportunity while working as an analyst at Perry Capital. He used this idea to raise capital from his first investors, and his fund was born. In this episode, Patrick tells the story of how shorting Tesla became a pivotal mistake that led him to his current contrarian investment strategy. Central to this approach is the ability to not be biased towards investment ideas due to external pressure, but to instead let price volatility in the market work to his advantage. “I realized how having these conversations with prospective investors was actually biasing me toward looking for an idea,” Patrick explains about his Tesla short, “instead of just letting the idea hit me over the head and letting the price volatility of the market be our advantage. It was me turning over stones and trying to say, 'that's the one, right now I've found something that everyone was missing.'” Lately we've observed an environment where investors "want it all," and managers often overspecialize to the point that they lose their edge trying to deliver something unique. Given these pressures, watered-down results should not be surprising. On the other hand, Patrick is an unapologetic generalist. He deliberately keeps himself open to every good opportunity, which has resulted in 29% net annualized return since his fund's 2011 inception. Prior to launching Quinn Opportunity Partners, Patrick was an analyst in the risk arbitrage group of Perry Capital, with approximately $1 billion allocated to the strategy. Patrick graduated from the University of Kansas with a B.S. degree in Biochemistry.

As the son of Iranian immigrants who were forced to relocate during the 1980 Iran-Iraq conflict, Cameron Khajavi is no stranger to building things from scratch. His father, an accomplished engineer in Tehran, started mowing lawns in Houston, Texas in order to provide for a young family. His example provided Cameron the motivation and inspiration to later start his own fund, named with his parents’ initials. Cameron is the founder and CIO of MIK Capital, a long/short hedge fund specialized in consumer businesses. His introduction to the financial world came while accompanying his mother to their local Fidelity branch, where he was introduced to the idea of mutual funds. This idea drove him to move away from the family tradition of medicine to pursue a career in finance. MIK’s investing strategy includes a focus on team dynamics, probabilistic thinking, and looking past current market perceptions to see the underlying potential of a security. In this episode, Cameron discusses market fads and the market’s tendency to overvalue companies based on fads. “It's not uncommon now to have a SaaS business trading at 30, 35 times sales.” Cameron explains, “If the company can continue to grow at 35% for the next X number of years, then potentially that is justified, but there's not a lot of base cases that you can point to historically that suggest that's a common occurrence. And that's kind of what you need just to justify the current stock price.” Cameron Khajavi was born in Boston, grew up in Houston, Texas, and attended Duke University. Cameron also received an MBA from the Wharton School at the University of Pennsylvania. He began his career as a consumer-focused M&A analyst in the investment banking division of Lazard. Prior to launching MIK, Cameron worked at Citadel Global equities from 2007 to 2014.

Starting his own investment firm at a younger age than most, William Heard learned the importance of listening while carving his own path in the equity investing space. William Heard is the founder, CEO, and CIO of Heard Capital. His investing approach is propelled by the skills he obtained through his upbringing in Milwaukee, WI and his experiences in finance—such as actively listening, always having a plan for what can go wrong with an investment before initiating a position, and analyzing a management team’s “Say-to-Do” Ratio. In this episode, William explains why investors should never dilute their best ideas. William also explains how focusing on debates, rather than screens, leads Heard Capital to its investment ideas, and discusses the firm’s dedicated process to help remove confirmation bias and see through the fog. “I know that every day is going to be different,” says William, “Our investment process begins with listening and making sense of your environment, knowing what's real and what's not, and then supporting the decisions made with a unit-based fact pattern.” William Heard earned his degree in Finance and Real Estate from Marquette University’s College of Business Administration, where he founded the University’s Applied Investment Management Program. William currently serves on the Leadership Council for a Better Chicago, the City Year Chicago Board of Directors, and actively participates in OneGoal: a local organization dedicated to creating opportunities for today’s youth and low-income population.  

After a noteworthy decade-long tenure at UBS, Alexandre Challand returned to his true passion in life: wine. Wine had captured Alexandre's imagination as a teenager, back when he convinced his father and uncle to purchase cases of Lafite 1986 for 60 Francs for both drinking and long term investment (which had increased in value 20x by 2008). Alexandre Challand is Founder of Vintage Investments, Co-Founder of Histoire d’Enfer (a high end winery project) and Co-Founder of Fine Wine Capital, an investment boutique specialized in high end wines from Burgundy, Bordeaux and Italy. The objective of Fine Wine Capital AG is to deliver a superior financial return to its shareholders over the medium term and to allow its stakeholders to get exposure in the distinct asset class of fine wines. As you’ll learn in this episode, in many aspects, wine matured to become a financial asset class. There are benchmarks, live prices, and—pun intended—abundant liquidity. In many other aspects though, wine remains a specialized market where you need expertise to navigate. As an example, staying cautious of a growing number of counterfeits flooding the market. In this episode, you’ll learn from Alexandre about wine as an asset class. Hear what he looks for in an investment, how he knows it's time sell, as well as Alexandre's strong feelings on Bordeaux and global warming. But also, you’ll hear about Alexandre's story on how to combine passion with reason. If your heart beats for an unique asset class, you'll be pleased to meet Alexandre. Alexandre received a BA in Political Science from the University of Lausanne, and a Masters in Economics from the London School of Economics as well as a Master from the University of Bordeaux (DUAD).

Jeff Lignelli is the founder, portfolio manager, and CEO of Incline Global Management, a long short equity fund based in New York. Central to Incline Global's philosophy is a rigorous adherence to data and analytics. "When you start a hedge fund, it's not like you've won a prize; you've only won the right to work very, very, very hard," points out Jeff, "Starting a hedge fund is only a license for continuous improvement. And the people that will really do well over the long term are funds who evolve over time." Jeff Lignelli's great grandfather left Naples, Italy, at age 17 and worked in the Pittsburg steel industry. His grandfather's courage inspired Jeff to aim higher, which led to him to graduate from the Wharton School of Business as a Joseph Wharton Honors Scholar. "It's so important to work very hard to put everything you can into growing your business and your fund. I actually like to think that I have ice in my veins during the very difficult times in the market. And I think that comes from the mindset that you get being so close to someone from that generation—like my grandfather." Prior to forming Incline Global in 2012, Mr. Lignelli served as a partner on the investment staff at Appaloosa Management. At Appaloosa, Mr. Lignelli was responsible for developing specific sector themes and related equity investments. Prior to his tenure at Appaloosa Management, Mr. Lignelli founded Stonebrook Fund Management in 2001, where he was a portfolio manager for the firm’s long/short equity hedge funds. In 2008, Stonebrook returned outside capital to investors and Mr. Lignelli primarily managed his personal capital until he joined Appaloosa Management. From 1998 until 2001, Mr. Lignelli was a partner on the investment staff at Omega Advisors where he invested in companies across a myriad of sectors, geographies and market capitalization. Before joining Omega, Mr. Lignelli served as equity analyst at Atticus Capital where he performed research and analysis across equities and special situation investments. Mr. Lignelli began his career in finance as analyst and associate at Gleacher & Co. where he focused on mergers and acquisitions and gained a detailed knowledge of valuation and construction of financial models.   

Investors today seem to be enamored with growth in the US tech sector, regardless of valuations. By contrast, Soo Chuen and his team practice the increasingly rare art of contrarian value investing on a global scale. Soo Chuen Tan is President of Discerene Group LP, a Connecticut-based private investment partnership that invests in businesses protected by either structural barriers to entry (“moats”) or hard assets, when such businesses are out of favor, at prices offering significant margins of safety. In this episode, Soo Chuen discusses the psychological and philosophical underpinnings of value investing, including (1) being greedy when others are fearful and fearful when others are greedy, (2) viewing risk as the probability and potential magnitude of permanent capital impairment rather than volatility, (3) distinguishing price from value, and (4) requiring a margin of safety. Soo Chuen also discusses the importance of understanding the historical, social, and cultural context of a business enterprise. What are the unspoken norms that a management team operates by? What are the values of the country or culture that the business operates in? Values, after all, guide behavior, and behavior influences outcomes. Soo Chuen speaks of several investments he's been involved in around the world, and what he's learned from each. In particular, he shares his reflections on operating in "thick" versus "thin" cultures. Born in Malaysia to two physics teachers, Soo Chuen discovered his calling as a value investor in his mid-twenties while in business school. Soo Chuen holds a Bachelor/Master of Arts degree in Jurisprudence from Oxford University, where he was awarded the Martin Wronker University Prize for Law. Soo Chuen also holds a Master of Business Administration degree from Harvard Business School, where he was a George F. Baker Scholar. Before founding Discerene, Soo Chuen worked at Deccan Value Advisors, the Baupost Group, Halcyon Asset Management, and McKinsey & Company.

Paolo Mortarotti is founder and Chief Investment Officer of Tower House Partners—a fundamental equity, long/short manager in London. Part of Paolo’s success as an investor lies in his ability to identify companies that have promising futures, but are overlooked by the market. He then applies what he calls a “peaceful activist” approach: (1) gain the confidence of a company’s management, (2) have an open and frank discussion about what they're trying to achieve, and (3) help the company imagine a greater future and move toward it together.  When it comes to transparency, Paolo may be an outlier. Most managers prefer an aura of mystery—not Paolo. In a field often shrouded in secrecy, Paolo believes that when companies and investors are upfront with stakeholders about their processes, everybody benefits. Paolo graduated summa cum laude in Economics from Bocconi University in 1999. He then started his career at Cazenove on the European research team (which has nurtured several of the current London-based equity managers). Paolo continued his development as an analyst at Theorema before graduating to the portfolio manager seat at UBS O’Connor, and then back at Theorema. All the while, Paolo focused solely on the sectors that Tower House now specializes: healthcare, TMT, consumer and business services. Prior to establishing Tower House, Paolo spent a few years as a managing director at C&C Group, a FTSE 250 consumer goods company, where he helped hone his “think like a business owner” philosophy through a better understanding of what really goes on behind the corporate façade.

Jennifer Heller is President and Chief Investment Officer at Brandywine Group Advisors, advising on $10bn of capital for a small group of families with multi-generational time horizons. This means she is in the field of balancing portfolio objectives and beneficiary interests. Conversations around this have become especially crucial during the COVID-19 crisis, as she shares. Listen to hear some of the guidance Jennifer gives her families about how to stay smart during these unique market circumstances. Central to Jennifer’s success is finding a steady supply of best-in-class managers. When working with limited transparency, this part of the job is difficult for any allocator. In this episode, Jennifer shares her insights on how to screen for manager alignment using the quantitative and qualitative tools at her disposal. She also shares how she knows it could be time to part ways with a manager. The Brandywine pools and family portfolios span multiple asset classes and investment styles, a challenge that Jennifer finds absolutely invigorating. As a liberal arts major in college, Jennifer has always carried a natural curiosity for multiple topics. At one point during the interview, she suggests that having so many interests can be distracting at times—however, this knowledge breadth and approach to learning is actually the very force that helps her succeed. It’s this valuable attribute that inspired the title of the episode, “Investing Renaissance.” Before Brandywine, Jennifer worked at both Alfred P. Sloan Foundation and Stanford University’s endowment. Early in her career, she also spent six months in India working for a microfinance NGO. Jennifer holds an MBA from Stanford University.

By observing what hedge funds are holding in aggregate, one can potentially isolate themes that produce outsized returns. A best ideas strategy involves the creation of an index or basket of stocks based on hedge fund ownership. However, depending on how you approach the ownership data, outcomes vary drastically. To create an effective best ideas strategy, special care must be given to: (1) data integrity, (2) filer identity, and (3) construction mechanism. In this minisode, Aishwarya Damodharan, Shraman Ghosh, and Nathan Innis of Novus discuss the interworkings of the Novus 4C Indices, and how the Novus Conviction Index has fared in the times of Coronavirus. WORKS MENTIONED: 13F Research with Barclays– https://indices.barclays/file.app?action=shared&path=qis/insights/qis-insights-13f-alpha.pdf Consensus vs. Conviction­– https://www.novus.com/blog/which-factor-is-truly-a-best-idea Barclays Partnership­– https://www.novus.com/barclays-public-data-partnership Conviction Index during the Coronavirus– https://www.novus.com/blog/hedge-fund-best-ideas-during-covid-19 SPECIAL NOTICE: On July 10, 2020, the Securities and Exchange Commission proposed to significantly raise the AUM threshold for funds required to file quarterly 13F disclosures. The new AUM threshold would become $3.5 billion, effectively excluding 90% of current filers. Aside from shrinking the dataset with which best ideas strategies are curated, we anticipate this change would have many negative consequences for the investment community and markets. Read our analysis of the proposal here: https://www.novus.com/blog/dont-mess-with-13fs Please consider adding your voice during the 60-day public feedback period by emailing the SEC at rule-comments@sec.gov with subject line “File Number S7-08-20”; or by submitting a comment on the SEC’s website https://www.sec.gov/rules/proposed.shtml “

Fahmi Quadir ascended to fame in 2015 when she played a pivotal role among investors shorting Valeant Pharmaceuticals. She appeared on Netflix's Dirty Money series in 2018, discussing her successful short position against the company. At the time, Fahmi was an analyst at Krensavage Asset Management. Her concentrated, aggressive short book of fraudulent healthcare and biotechnology companies that she developed at Krensavage propelled her towards launching her own short-only fund in 2017. She was 27 years old. Safkhet Capital, where Fahmi is founder and CIO, is a concentrated, short-only fund focused on identifying and exposing fraudulent companies and companies with misleading business practices. Safkhet achieves this via diligent investigative research, unblinking defiance in the face of opposition, and a strong propensity for moral justice. Fahmi's penchant for sniffing out and acting against fraud has even earned her the nickname, "the assassin." And as she describes in this episode, "It's not uncommon for me to be in a room with executives and then they start sweating—even if I'm not saying anything." She attributes much of her drive to her upbringing, and the sacrifice her parents made for her in moving to the US from Bangladesh. Born and raised on Long Island, Fahmi Quadir graduated in mathematics and biology from Harvey Mudd College in Claremont, California. Her rigorous STEM background and love of mathematics has shaped her approach to the world and markets.

Josh Jacobson is Partner and COO of the Equity Division at Cheyne Capital Management, a London-based alternative investment manager. He is also the classic successful player-turned-coach story. The concept of coaching has always been a core tenet throughout Josh's career. Why? Investing is a performance activity. And as Josh points out, all of the world's very best performers who are at the top of their game, across any category, have a coach. Josh Jacobson started his career at Salomon Brothers in New York, where he conducted macroeconomic research within the emerging markets team. He joined Cheyne in 2002, where he managed one of the firm’s equity long-short portfolios without a single down year during his eight years as a portfolio manager (including during the 2008 financial crisis). He left for Trafalgar Capital in 2009, and then returned to Cheyne in 2015, where he now spends much of his time passing on his hard-earned wisdom to portfolio managers. In this episode, Josh shares what he learned from his time studying with Ari Kiev, and relates the uncomfortable realities that he faced while scrutinizing his own performance. Andrea and Josh also discuss the most common mental traps that investors fall prey to, as well as the top advice Josh gives when he is coaching portfolio managers.

Chris Dale is the founder, CIO, and portfolio manager at Kintbury Capital. Chris attended Cambridge to study math, but eventually earned his degree in philosophy. After school, Chris worked at S.G. Warburg in corporate finance. He eventually migrated to Warburg's equity division, where Chris cultivated his passion for markets and investing. Next, he moved to Millennium Capital Partners, at the time a $2.5 billion dollar fund. After nine years at Millennium running a market-neutral strategy, Chris started his own fund, Kintbury, motivated by his fascination for European equities. In this episode, we hear about Chris’s perception of market bubbles, as well as the valuable role that both math and philosophy played in shaping his approach to markets. Chris shares his personal metrics for determining when to sell, and also explains his ideology around tracking performance on a long-term basis. "The challenge is always asking yourself, if it wasn't in the portfolio, would you be putting it in today?" —Chris Dale Chris values inquisitiveness, which has served him well throughout his career. It turns out that math, philosophy, and investing all have the following in common: to succeed, you must truly understand and dissect your assumptions.

[Revised] Dan Waters is co-managing partner at Northern Trace, a commodity hedge fund. During his long career on Wall Street, Dan ascended to co-lead FrontPoint (along with Mike Kelly) in 2006. Shortly after, FrontPoint grew to be one of the world’s largest hedge funds, and was ultimately acquired by Morgan Stanley. Managing a portfolio is challenging. Investing at a large scale adds yet another complexity: managing talent. Like a portfolio, talent requires active management. Losers must be moved out, and winners must be scaled up. The difference is, of course, you’re making these decisions about people, not just securities, and that raises the emotional stakes. Dan insists that emotions are very important—you can't neglect them—but certain emotions can cloud judgement. Dan Waters is an exemplar of steady leadership (including during difficult periods), and he’s become adept at balancing his emotions so they don’t obscure his view of a situation. Dan’s thoughts on leadership are universally insightful, no matter your role or focus. He tells us the three simple questions he asks every prospective manager (24:18), and he discusses tactics for inviting people to improve (20:40). In this episode, Dan also provides us with a succinct thesis for leadership, “The best leadership comes from just doing what you're expecting of others yourself”(11:30).

While working for McKinsey & Company, Jennifer Oppold developed a passion for discovering what makes companies tick. At the same time, she grew frustrated at not being able to ever stay with a problem long enough to see it through, as consultants are required to quickly move on from one assignment to the next. With a newly discovered professional calling very clear in her mind, Jennifer left McKinsey to enter a dual J.D./M.B.A. program at Harvard. While there, she spent a summer with Select Equity, a firm investing in small- and mid-cap companies with a value tilt. It was love at first sight. At Select Equity, Jennifer started working with George Loening, the firm’s founder, who would become her most influential mentor. Under George, Jennifer learned the art of shorting, as well as how to wait for the “value moment.” About two years ago, Jennifer launched her own firm, Alpine Peaks, where Select Equity’s legacy of intellectual honestly and personal mentorship lives on—now with Jennifer’s touch. Hearing Jennifer’s story, we get to witness firsthand how the power of intellectual honesty creates an investment edge. Key to her success, she says, is diligence in writing down her assumptions. Anyone can talk about intellectual honesty, but Jennifer lives and breathes it. Those who seek to make a career on the buy side (and truly, investors of all stripes) can learn much from Jennifer Oppold’s journey.

Judson Reis is president and founder of Sire Management. Over half a century ago, Jud started at Morgan Stanley in New York. While there, he played a leading role in the largest takeover in American history of the time: Dupont’s acquisition of Conoco. Later, Jud was fortunate enough to become friendly with and invest with Julian Robertson. He’s also invested with Stan Druckenmiller and other legends. By investing in hedge funds and being forced to endure multi-year lock-ups, Jud learned that talented managers, given enough time, will sort things out and generate outsized returns. If you feel discouraged about declining returns, consensus trades, excessive diversification, and other gloomy statements of this kind, you’ll find this conversation a healthy boost of contrarian confidence. Outsized returns are still out there. And the talented managers generating them exist too. You simply have to know where and how to look. And you have to be willing to take the right risks. To measure whether you are taking the right kinds of risk in your portfolio, and to perform in-depth research on managers, check out novus.com.

Host Andrea Gentilini of Novus introduces himself and the podcast. The value of mentorship in the investment world cannot be overstated, and we hope that “Successful Investors” can serve as a mentorship program for investors everywhere who are interested in refining their craft.