David Morehead

Chief Investment Officer, Baylor University · 1 appearance on the record.

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David Morehead oversees Baylor University's endowment, implementing a top-down, thematic asset allocation strategy. Prior to joining Baylor in 2011, he spent nearly two decades in Chicago's hedge fund industry managing public markets portfolios across corporate capital structures at firms including Lotsoff Capital Management and Highview Capital Management.

36statements → 6claims → 5claims resolved → 60%fully supported → 3.86/5average certainty → 2.08/5average debate potential → ≈4.5/5argument clarity, estimated →

3 supported 0 partly supported 2 contradicted 1 not checkable as stated how the 6 claims stand · each chip opens the sources

6 assertions · 1 opinion · 14 insights · 15 disclosures · every statement was checked. The predictions and assertions are the 6 claims: statements the public record can support or contradict. 5 are resolved, and 1 names no date, number or outcome precise enough to check. Everything else (opinions, insights, what ifs, disclosures) can never be settled by the record, so it carries no assessment.

The record, in short

What the tape says about how David argues and how the claims held up. Everything they said, and everything said about them, is in the tabs below.

Their most notable supported claim

Assertion Supported

Morehead: Baylor endowment trails in bull runs but outperformed in 2020 and 2022

“So we know going into it, that in markets like, 2015 to 2019, we're probably gonna trail. And we're okay with that because in 2020 and 20 22, we outperform.”

David Morehead Apr 22, 2024 ▶ 27:21 David Morehead – Top Down Allocation at Baylor (EP.381)

Their most notable contradicted claim

Assertion Contradicted

Morehead: Venture capital industry in total has never lost money over 10-year period

“The industry in total over a 10 year period, I don't think has ever lost money. I'm not sure if I'm a hundred percent correct on it, but as close.”

David Morehead Apr 22, 2024 ▶ 35:43 David Morehead – Top Down Allocation at Baylor (EP.381)

Expressed certainty vs assessment result

none yet certainty 1

0% certainty 2

100% certainty 3

67% certainty 4

none yet certainty 5

weighted support: a fully supported claim counts one, a partly supported claim counts half. Each filled bar is clickable and opens exactly those claims; "none yet" means nothing said at that certainty level has resolved yet

How they sound: not measured why? →

We measure speaking style by listening to the audio itself, and a fair number needs at least 2,000 words from one person on tape we have measured. There is too little of David Morehead on measured tape to publish a rate. This says nothing about how they speak.

What they said36 Episodes1

Everything David Morehead said on Capital Allocators that made the record, most notable first. Filter by type, assessment or year in the ledger →

Insight

Morehead: Insecurity masquerading as humility centralizes power and drives talent away

“Is that insecurity masquerades as humility. And insecurity is a big issue because it infects the organization. If you're talking to portfolio manager, who at their core is insecure. Then they're not likely to give authority or rope or opportunity to the other …”

David Morehead Apr 22, 2024 ▶ 47:15 David Morehead – Top Down Allocation at Baylor (EP.381)

Insight

Morehead: Equity distribution across an organization tests manager security

“One of the obvious ways to test that is how widely is equity pushed down in the organization, because secure people will trust the people around them, encourage them. They want smarter people than them sitting next to them. And we'll reward those people, push …”

David Morehead Apr 22, 2024 ▶ 48:01 David Morehead – Top Down Allocation at Baylor (EP.381)

Insight

Morehead: Excessive portfolio diversification diversifies away alpha

“Diversification cuts both ways. It eliminates systemic risk, but it also diversifies away your alpha if it's too diversified.”

David Morehead Apr 22, 2024 ▶ 56:11 David Morehead – Top Down Allocation at Baylor (EP.381)

Assertion Not checkable as stated

Morehead: Most managers Baylor parted with beat their benchmarks

“In fact, if you look at the last 13 years, the vast majority of the managers that we have parted ways with have outperformed their benchmarks.”

David Morehead Apr 22, 2024 ▶ 56:32 David Morehead – Top Down Allocation at Baylor (EP.381)

Assertion Supported

Morehead: Midstream MLPs Offered 3-4x to 12-14x EBITDA Arbitrage

“So, 10 years ago, there was a private public ARB in the MLP space. You could cobble together the MLP Greenfield at three, four times EBITDA, and then you could sell it to the public markets at 12 or 14 times EBITDA.”

David Morehead Apr 22, 2024 ▶ 23:21 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor exited 2016 high-yield energy trade up 50%

“For example, in 2016, high yield energy in particular, that was the downdraft in the energy markets when crude prices really came in. The joke at the time was that 60 was the new par. And by the end of 2016, that had come around and we were out Of that positio…”

David Morehead Apr 22, 2024 ▶ 28:49 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor bought long volatility in 2017–2018 to hedge 2020

“We were buying long vol in 2017, 20 18, and just held on to it, and that was what gave us ballast in 2020 when the pandemic hit.”

David Morehead Apr 22, 2024 ▶ 29:20 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor Held $100M in Cash and $80M in Long Volatility in 2019

“So in 2019, we were having trouble finding things that had 15, 20% return opportunities in that environment. And so I think the endowment here at that time was maybe 1.3 billion or something like that. We had 80 million dollars in long ball and a hundred milli…”

David Morehead Apr 22, 2024 ▶ 38:32 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor allocates between $250k and $100M across individual managers

“We allocate, broadly speaking, between zero and a hundred million to individual managers. And we have some managers right now that have a hundred million dollars from us, and we have other managers, strategies that have 250,000 dollars, and the high yield stra…”

David Morehead Apr 22, 2024 ▶ 44:30 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor Has Set Up Three 'Funds of One'

“We probably have Three of those set up. Now we might add another two, but that fundamentally changes what your portfolio looks like and how it acts because you have bigger allocations of capital there than you did previously.”

David Morehead Apr 22, 2024 ▶ 1:01:31 David Morehead – Top Down Allocation at Baylor (EP.381)

Disclosure

Morehead: Baylor executes all endowment investments through external managers

“Yeah, so it's all through managers. We don't do anything directly.”

David Morehead Apr 22, 2024 ▶ 20:44 David Morehead – Top Down Allocation at Baylor (EP.381)

Assertion Supported

Morehead: Baylor University's endowment is roughly $2.2 billion

“We're talking about, for us, I think the endowment now is around 2.2 billion, something like that.”

David Morehead Apr 22, 2024 ▶ 40:21 David Morehead – Top Down Allocation at Baylor (EP.381)

Appearances (1)

Episode	Date	Speaking time
David Morehead – Top Down Allocation at Baylor (EP.381)	Apr 22, 2024	54m

David Morehead

The record, in short

Their most notable supported claim

Their most notable contradicted claim

Expressed certainty vs assessment result

How they sound: not measured why? →

Appearances (1)

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