Capital Allocators Monthly (May 2018)

 

Spring is upon us (just in time for summer!).

My favorite pieces this month came from social media feeds (Twitter and Medium).  A sign of the times!

Reading
1. Sam Hinke Letter to Investors  In early May, I watched the Philadelphia Sixers close out the Miami Heat in the first round of the playoffs on their home floor (thanks Ron!). It was a surreal experience from many perspectives, not the least of which was listening to 20,000 Sixers fans chant “TRUST THE PROCESS” just two years after they cried uncle on the process and ran its progenitor, Sam Hinke, out of town. Sam’s departing letter to investors in the Sixers LP a treatise to long-term investing across disciplines, and displays how challenging it is to implement.

2. James O’Shaughnessy Tweet Storm. Jim is an old hand at quant investing (although not that old), and once was so popular that he appeared on Oprah. After turning over the CEO of his eponymous firm to his son Patrick, Jim has had more time to think and reflect. His Tweet storm is a masterpiece of knowledge, insight, and humility.

3. John Pfeffer An (Institutional) Investor’s Take on Cryptoassets  John’s memo-to-self on crypto asset investing went viral. It’s a sophisticated, yet understandable take with grounding in economics and investing fundamentals. He was equally good discussing his family office on the podcast (see below).

4. Brent Beshore Life Changing Ideas. I enjoy lists of life lessons as refreshing reminders for what is important. In reading this one from Brent, I found myself noting the important difference between reading along with a head nod and applying my own. The paradigm is akin to Ray Dalio’s Principles (which I have not yet read) and his pitch to create your own for yourself. I greatly enjoyed Brent’s, and will endeavor to write a piece about mine this summer.

Watching
1. CNBC clip on hedge funds. I had a chance to go on CNBC and discuss some basics about hedge fund investing.

Listening
Capital Allocators
1. Paul Black, Co-CEO of WCM Investment Management, describes a growth stock methodology rooted in widening moats and culture tied to competitive advantage.

2. Kim Lew, CIO of Carnegie Corporation, gets into the nitty gritty of the good, bad, and ugly of a CIO’s job.

3. Ross Israel, Head of Global Infrastructure for QIC, talks infrastructure investing at one of Australia’s sovereign wealth funds.

4. John Pfeffer, head of his own family office,discusses his unique take on asset allocation and a deep dive on crypto.

Best of the Rest
1. Sam Hinke on Invest Like The Best.

Community
I am in the home stretch of finalizing produceable transcripts of all prior episodes of Capital Allocators and setting up discussion groups for each episode. Both will be available with a subscription to premium content.  Stay tuned.

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Have a good one,
Ted