Capital Allocators' Ted Seides - the capital allocator behind the mic

Welcome back to the Alt Goes Mainstream podcast. What happens when two podcasters walk into a room?  They talk. Today’s podcast turns the tables on one of the industry’s leading podcasters and content creators to have him share his story and experience as an allocator and content creator.   We sat down with Ted Seides, the Founder of industry-leading podcast Capital Allocators and former President and Co-CIO of Protégé Partners and an asset allocator at the Yale Endowment. Ted has had a tremendous career at the intersection of asset allocation and content, so it was fascinating to hear his perspectives on the state of the industry and how it’s evolving from someone who talks with many of the industry’s leading minds through his podcast, Capital Allocators. Ted and I had a fascinating conversation. We discussed:Stories and lessons learned from working with David Swensen at the Yale Endowment.What the wealth channel can learn from institutional investors.What Ted looked for in hedge funds and alternative asset managers when doing manager due diligence.Ted’s bet with Buffett on hedge funds and why he’s now doing a bet on PE versus public equities.How alternative asset managers are evolving and the pros and cons of evergreen structures.Why and how Ted started Capital Allocators and why content is so critical to learning asset management and understanding how firms operate. Capital Allocators is one of my favorite podcast listens and Ted always delivers with high-quality and thoughtful content so it was an honor to have him on the show. Thanks Ted for sharing your expertise and wisdom on asset allocation and content and for the service you provide to everyone in the industry through education and the creation of such high-quality content for us to consume. 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Show Notes 00:00 Introduction to our Sponsor, Juniper Square 00:38 Juniper Square's AI Capabilities 01:40 Guest Introduction: Ted Seides 04:03 Lessons from Yale Endowment 04:46 David Swensen's Investment Principles 05:51 Evolution of the Endowment Model 05:58 Wealth Channel vs. Institutional Investors 08:09 Access to Top Managers 11:16 Alpha in Private Markets 12:32 Ted's Bet with Buffett 13:10 Private Equity vs. Public Equities 17:16 Private Equity Diversification 18:45 Hedge Fund Industry Lessons 20:07 Private Equity Fee Structures 24:03 Talent Migration in Private Markets 26:47 Evaluating Investment Culture 27:15 Investment Philosophy and Strategy 28:26 Ted's Approach to Manager Evaluation 29:46 Impact of AI on Diligence Processes 30:20 Defining Investment Edge 30:33 Behavioral and Analytical Edge 31:01 Informational and Technical Edge 31:27 Evaluating Investment Managers 31:37 Impactful Investment Decisions 31:52 Mistakes and Learning 32:53 The Hardest Time to Invest 34:14 Behavioral Biases in Investing 34:51 Decision-Making Processes 36:28 The Role of AI in Investing 38:07 Content and Investment Decisions 39:25 Starting Capital Allocators 41:00 Learning from Podcasting 43:40 Building a Business from a Podcast 45:26 The Value of Relationships in Investing 47:06 Content Strategy for Managers 49:44 Effective Content Modalities 50:43 Direct Communication vs. Algorithms 51:13 Brand vs. Direct Sales 52:35 Insights from Podcast Conversations 54:23 Favorite Private Market Investments 56:05 AI and Investment Perspectives 57:37 Partnering with AI Experts 58:12 The Importance of People in Investing   Editing and post-production work for this episode was provided by The Podcast Consultant.