East Rock advises clients to hold long-only equity exposure outside its umbrella
Adam Shapiro · Adam Shapiro – Post-Breeding Grounds for Rising Stars and Families (Capital Allocators, EP.319) · Jun 5, 2023 · at 44:17
Adam Shapiro discusses portfolio structure for multi-family office clients at East Rock Capital.
0:00 / 0:23exact quote · 23.2s
720p mp4 · rendered on demand · StarZero watermark
“We did relatively little in traditional long-only equities, and the thinking there, here's where we had to make a choice about what we thought was best for our family clients, and we felt that to the extent our families ought to have long-only equity exposure, they actually ought to do it away from us, not under the umbrella of East Rock.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Adam Shapiro
Investment managers hit their career sweet spot in their first five years
“We have a very strong belief, backed up by quite a lot of data, that there is a sweet spot in the careers of great investment managers that really occurs in those first five or so years when somebody who's proven themselves at a larger firm leaves, start somet…”
Goldman Sachs habitually allows internal investment groups to overlap and compete
“Goldman has a habit of allowing different groups to play in the same areas. We started bumping into other groups within Goldman more and more, and possible investments I was working on, all of a sudden I would get a phone call that it was somebody else's area,…”
Leaving a firm without pre-arranged funding is the best emerging manager signal
“The best positive signal there is, is that somebody leaves the larger place without something already set up.”
Cynical short pitches make hedge fund managers sound deceptively smart
“Everybody knows that if there are 20 hedge fund managers around the table and you want to sound the smartest, you do a really colorful short pitch. There's even, I think some psychological research that says like cynicism, negativity, those things actually sou…”
Personal character and long-term relationships matter more for alignment than co-investment
“There's a personal element to alignment that has to do with your relationship with the person, the character of that person, them caring about alignment. And that in many cases is much more important than just the financial flows of what do they put in and wha…”