CAZ Investments charges zero management fees on most of its investment offerings
Christopher Zook · Christopher Zook – Thematic Investing and Raving Fans at CAZ Investments (Capital Allocators, EP.226) · Dec 13, 2021 · at 49:01
Christopher Zook, Chairman and CIO of CAZ Investments, describes his firm's fee structure aligning CAZ with limited partners.
0:00 / 0:06exact quote · 6.1s
720p mp4 · rendered on demand · StarZero watermark
“In most cases, we don't charge management fees at all. We just get paid a percentage of the profits. And if there is no profit, we don't get paid.”
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 Christopher Zook
Public pensions have zero chance of hitting return targets without private markets
“They have a six or seven percent actuarial assumption that they've got to meet, and there's zero chance that their public equity or fixed income buckets are going to meet that need, so they're having to do more privates.”
A CAZ partner firm turned a $2.5M Solana investment into over $4B
“Right now, one of our firms, they invested two and a half million dollars in Solano, and today that stake is worth over four billion dollars.”
Zook predicts Opendoor will completely dominate iBuying after Zillow's market exit
“Opendoor, we thought it was going to be Coke and Pepsi, and now it's just going to be Coke and Coke.”
Hedge fund GP stakes yield binary boom-or-bust outcomes within two years
“If you own a piece of a hedge fund in two years, you're either just doing incredibly well or you're out of business. There's really not a lot in between.”
Some private equity firms expand AUM purely to harvest management fee revenue
“Well, in the private world, I think there is some of that that is absolutely happening. Where firms are growing just for the sake of growing, not because of the fact that they're doing it for performance.”
Pension board governance forces allocators to write bigger checks to mega-funds
“He said, if I go to my board and say, these are the 20 managers we're going to hire this quarter, and next quarter we're going to hire 20 different ones, at fifty million bucks a piece, I'm going to get fired. Because of the fact that they're not going to want…”