The Ledger
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Hall Capital Halted Private Energy Fund Commitments Around 2017
“We probably stopped investing in making commitments to private energy funds now probably, I don't know, four-ish years ago, and we didn't stop because we thought they were inherently bad, but we stopped because the price deck became so much more uncertain on f…”
Katie Hall: ESG-Focused Portfolios Match Broad Market Expected Returns
“Global multi-asset class portfolios that are really We think have the same expected return as a more broad based, if you will.”
Krinsky: Advisory firms must add client relationships to provide career growth
“In most businesses, I think if you're not growing, you're dying. Certainly that is the case for ours. So the markets help. We invest well and performance helps, and clients generally spend less money than they make. But we need to be growing in absolute number…”
Krinsky: Single-Revenue Independent Advisory Firms Will Struggle to Survive
“I think it'll be very hard to remain independent in the way that our firm was independent. No balance sheet, one revenue line, because the world is innovating really, really quickly. This space is innovating quickly. So I expect more combinations, more capital…”
Krinsky: Private Equity Is the Biggest Catalyst for Wealth Management Consolidation
“The biggest change has been private equity capital. Which solves a bunch of problems around innovation and in some instances around business succession. And the competition has become better and deeper. And I think that drives consolidation too.”
Krinsky: Asset management firms require balance sheets to fund continuous innovation
“The world is innovating really quickly around us. And why? Because they have a balance sheet. You know, in our business model, money comes in, we pay people, money goes out. That's how it works. A balance sheet really, really matters.”
Katie Hall: Clear Role Definition Is Critical for Investment Committee Success
“I think having a really deep and shared understanding of the role of the committee is critical. And in some cases, those have been, I've been involved in committees where there is a very active involvement in the portfolio composition. In others, it has been t…”
Katie Hall: Allocators Should Systematically Trim Winners Over Binary All-Or-Nothing Calls
“And it's really the discipline to keep trimming back as opposed to necessarily feeling these make the all the way in or all the way out call. But maintaining that disability of trimming back is really what you have to do.”
Katie Hall: Active Managers Must Be Concentrated to Avoid Closet Indexing
“There's not any one answer, but in general, we think if you're going to be investing in a way that is an active manager, you need to be different than an index. So you don't end up with just an expensive index. And the way that you most frequently get there is…”
Katie Hall: Deep Conviction Naturally Undermines Objective Investment Underwriting
“Once you have deep conviction about something, you almost necessarily are no longer as harshly objective as you need to be, and it's that continual Both development of conviction around the investment decision, which in our case manifests through selection of …”
Hall Capital Holds Small Bitcoin and Ethereum Index Positions for Clients
“We also have for where it's appropriate, which get, it's a definitely a subset of our clients, small, but I would call index, quasi index positions, Bitcoin, Ethereum, Positions that we basically are doing it as if an index, but this is way out on the risk rew…”
Katie Hall: Wealth Advisory Services Are Bought, Not Sold Through Persuasion
“I mean, I always said that we were essentially a business that was absolutely bought, not sold, because I don't believe you can convince somebody about the merits of a diversified portfolio if they don't want a diversified portfolio.”
Katie Hall: Diversify Across Asset Classes, Maximize Concentration Within Them
“Long-term diversified portfolio is the winning hand in most cases, and we believe within asset classes that it makes sense to have as much concentration as is tolerable, that you're really getting the diversification across the asset classes primarily as well …”
Hall Capital Made Small Commitments to Venture-Oriented Crypto and DeFi Managers
“We have made a couple of small commitments to some venture-oriented crypto players really viewing that as Something that could be significant, particularly in around DeFi and some of the things that we've seen where a lot of that business activity is happening…”
Hall Capital Treats Client Acquisition as a Firm-Wide Collective Responsibility
“We don't pay people for client acquisition because we view that as something that the entire firm is responsible for”
Krinsky: Hall Capital will fully integrate into Pathstone without changing investment personnel
“For us, we won't have a legacy business that stands independent from the combined business. And our relationships with our clients aren't going to change. We still invest in the same way. We have the same investment philosophy. In fact, the same people making …”
Krinsky: PE funds reached out to invest after Hall Capital deal leaked
“Starting with when the leak occurred, we got a bunch of inbound calls from private equity funds saying, if this is true, we want in.”
Krinsky: All Hall Capital Owners Roll Same Equity Percentage Into Pathstone
“Every single owner, including our clients and Katie and John and the three of us, All the way down to the vice president who was promoted last year and got her first units are rolling the same percentage of our equity into Pathstone stock and receiving some ca…”
Katie Hall: 38 of 190 Hall Capital Employees Hold Firm Equity
“Today out of our, I don't know, give or take, 190 employees, 38 are owners in the firm, so we really have worked to continue to have that, build on that sense of partnership and continue to expand that ownership, and we've also done it through a generational t…”
Hall Capital Received Inbound Materials From Over 1,000 New Funds in 2020
“Just last year alone, we got material from over a thousand different firms slash funds on an incoming basis. That's new stuff.”
Hall Capital Borrows to Buy Back Founder Equity for Staff Distribution
“And we have, over the years, worked to further that transition of ownership through essentially borrowing and repurchasing parts of my stake, parts of John's stake, parts of our outside owner's stake, and then reallocating that to the senior people and through…”
Hall Capital Rarely Backs Equity Managers Holding Over 100 Positions
“We invest with managers that on the very limit side, we have invested with managers that own a dozen positions. We also have invested with managers that own 60 plus. I think it's very rare that we've invested with managers that have north of a hundred, unless …”
Hall Capital Exclusively Charges Basis-Point Advisory Fees to Ensure Alignment
“The business model was really one that I was pretty clear about really from the beginning and has more or less stayed consistent throughout, which is rooted in independence and objectivity and basically only being paid one way, which was by our clients. And it…”