Scott Richland, Chief Investment Officer at Caltech sits down with David Weisburd to discuss key portfolio secrets inside Caltech’s $4.5B endowment strategy, the importance of strategy discipline in asset management and how direct investments are chosen behind Caltech's opportunistic bucket.
The 10X Capital Podcast now receives more than 170,000 downloads a month. Are you interested in sponsoring an episode? Please email me at David@10xcapital.com.
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SPONSOR:
Carta is the all-in-one suite for private fund operations. Carta’s software-based approach takes fund administration out of the spreadsheet and into the modern age with powerful solutions and intuitive interfaces, all on one platform. Their suite of products and expert services help funds at any stage with up-to-date insights and automated workflows to get them to the next level. Learn more at: https://z.carta.com/10xpod
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X / Twitter:
@dweisburd (David Weisburd)
@Caltech (Caltech)
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LinkedIn:
David Weisburd: https://www.linkedin.com/in/dweisburd/
Scott Richland: https://www.linkedin.com/in/scott-richland-459a415/
Caltech: https://www.linkedin.com/school/california-institute-of-technology/
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Links:
Caltech: https://www.caltech.edu/
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Questions or topics you want us to discuss on The 10X Capital Podcast? Email us at david@10xcapital.com
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TIMESTAMPS:
00:00 Episode Preview
00:54 Portfolio Construction and Allocation
02:19 Team Structure and Investment Strategy
03:05 Advantages of Caltech's Endowment Size
04:21 Taxable vs. Non-Taxable Portfolios
05:55 Evergreen Funds and Their Benefits
07:08 Governance Structure and Investment Process
09:55 Sponsor: Carta
18:33 Macro Trends and Market Opportunities
22:01 Historical Market Downturns: Lessons Learned
22:43 The 2020 Market Drawdown: A Different Beast
23:24 Managing Emotions and Portfolio During Downturns
24:47 Reevaluating Investments: Best Practices
25:35 Human Nature in Investing: Avoiding Common Pitfalls
27:50 Asset Allocation and Direct Investments
30:12 Exploring New Investment Themes
35:25 The Role of Active vs. Passive Management
39:15 The Importance of Reducing Portfolio Volatility
40:59 Balancing Drawdowns and Expected Value
43:35 Leadership and Team Management
47:06 Reflections on a 14-Year Career at Caltech
49:10 Closing remarks
