Seides: Endowments perpetuate top returns through exclusive manager referral networks
Ted Seides · Ted Seides – A Rational Reminder (Capital Allocators, EP.121) · Jan 27, 2020 · at 35:55
Ted Seides (Capital Allocators host and institutional investor) discusses with Benjamin Felix why elite institutional allocators and endowments maintain competitive advantages.
0:00 / 0:38exact quote · 39.0s
720p mp4 · rendered on demand · StarZero watermark
“Having the right networks to be able to access and find great investment ideas is, is pretty important. And it's one of the reasons why, you know, where we started some of these large endowments Have been able to perpetuate returns because they have long histories of being demonstrated to be a very long-term, very supportive, and very critical investor, and the managers who have benefited from that over a long period of time are more than happy to refer to them the people they think also meet their high standards, and that is a network of people that the vast, you know, almost nobody else has access to.”
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 Ted Seides
Seides: Believed Buffett was 'the patsy' for picking the S&P 500
“I thought Warren was the patsy at the poker table, because he threw out the S&P as the index. I thought that was the wrong index to be picking, and it was something that was going to be an easy hurdle to overcome.”
Seides: Many Private Equity Firms Have Already Raised Their Last Fund
“There are a lot of private equity firms out there today who don't realize they've already raised their last fund.”
NAV Loan Dividend Recaps Are a Gimmick to Juice IRR
“The dividend recap of a private equity portfolio seems like a gimmick to juice distributions and IRR so the GP can ask for a commitment to its next fund. In fact, NAV lenders are pitching this concept to GPs as part of the value proposition for accepting a loa…”
NAV Loans Signal the End of the Private Equity Boom
“NAV loans strike me as a canary in the coal mine signaling the end of the private equity boom.”
NAV Loans Resemble Pre-2008 Subprime AAA CDO Tranches
“In many ways, NAV loans resembled the AAA tranches of subprime CDOs 15 years ago.”
Swensen: Private Equity Fee Burden Almost Guarantees Disappointing Returns
“He said, while illiquid markets provide a much greater range of mispriced assets, private investors fare little better than their marketable security counterparts, as the extraordinary fee burden typical of private equity funds almost guarantees delivery of di…”