Capital Allocators

Top quotes from my conversation with James Aitken from Aitken Advisors LLP, Louis-Vincent Gave from BCA Research, and Marko Papic from Gavekal. 1. "The world by design has been overweight U.S. assets for a generation. We now have an administration sending a very direct message to global capital: ‘please go away’." -James   2. “The constraint on American legislators is the bond market, which started when the human steepener was elected as President.” -Marko   3. “The markets have just had the Uno reverse card dropped. The U.S. had massive fiscal spending. China and Europe did not. Now, the U.S. is doing fiscal consolidation just as China and Europe step on the fiscal accelerator.” -Louis-Vincent   4. “In policy-induced recessions, what really matters is the second derivative in policy, not data. Markets will move before the data shows we’ve passed the bottom” -Marko   5. "Now's the time to sharpen your pencil and be a net liquidity provider on assets – not at a beta level, not at an index level, but on very specific assets which just got smashed considerably is absolutely the right thing to do." -James   6. "Back up the truck on Latin American assets. Other obvious assets to me are those that have been absolutely decimated because they were perceived to be the big losers in the unipolar U.S. world, like Chinese distressed debt." -Louis-Vincent   7. “I'd love to know what Trump is trading in his PA. If I had insight into that, I would add a lot of value to my clients.” -Marko https://lnkd.in/eWxRHfYB With thanks to WCM Investment Management and Morningstar.

On Investment Management Operations, Scott MacDonald speaks with Scott Farden from Nonantum Capital Partners. With thanks to Octus. https://lnkd.in/eXFUspUS

 A special discussion of geopolitics and the market implications with James Aitken, Louis-Vincent Gave, and Marko Papic. With thanks to WCM Investment Management and Morningstar. https://lnkd.in/eWxRHfYB

Some timely wisdom from Howard Marks on private credit.

Top quotes from my conversation with Howard Marks from Oaktree Capital Management, L.P. Timeless Wisdom 1. "When you buy a stock, there's no button you can push to find out what the return will be. Fixed income is so much easier." 2. "It's not what you buy, it's what you pay.” 3. "There is no asset so good that it can't become overpriced and dangerous, and very few assets so bad that if it's cheap enough, it can't be a good idea." 4. "If we avoid the losers, the winners take care of themselves." 5. "Fixed income is a negative art. You improve your performance not by what you buy, but by what you exclude." 6. "In the investment business, sometimes the best advice is: don't just do something, sit there." 7. "Buffet puts it succinctly that it’s first the innovator, then the imitator, then the idiot." 8. “We're not expecting any surprises. Surprises are by definition unexpected.” 9. "Being public means every day you get a report card from somebody who doesn’t know your business that well."   Timely Wisdom 10. "Today, credit standards are lowish. That still presents a big problem, because if you want to apply high standards and somebody else has lower standards, then they can bid more for a given deal." 11. "The aspect of being undiscovered and unloved is over for private credit. Now it’s just fairly priced. The question is whether you do it carefully or aggressively?" 12. "The magic of private equity is diminished. Just buying and selling companies doesn't add value unless you can do something better." https://lnkd.in/e34ZMYEb With thanks to WCM Investment Management and iConnections.

Navigating private credit. My conversation with Howard Marks. https://lnkd.in/e34ZMYEb With thanks to WCM Investment Management and iConnections.

Meghan Reynolds discusses the biggest mistake she sees GPs make.

Top quotes from my conversation with Meghan Reynolds from Altimeter. 1. "The biggest mistake that I see GPs make is they say too much and they don't listen." 2. "Your existing relationships are the key to building new relationships." 3. "The market of today is about haves and have-nots. It’s about backing someone that deserves to be there." 4. "Returns are table stakes. It's all about what else you deliver to people. A lot of that comes down to great communication." 5. "People love storytelling. The most impactful fundraisers and marketers that I have worked with are incredible storytellers." 6. "I know I'm winning when an LP is telling me what they're not happy with." 7. "If your big win was amazing, say it was amazing. Don't expect your investors to read through the tea leaves of your humility. Shout it from the rooftops." 8. "If shit goes wrong in an organization, start listening and just hang on tight and write everything down. You learn so much in those moments." 9. "When sharing bad news, get out quickly and address very clearly what I call PIE: Problem, Impact, and Exposure." With thanks to WCM Investment Management and iConnections.

The art of capital formation. My conversation with Meghan Reynolds. https://lnkd.in/dbwasDnb With thanks to WCM and iConnections.

Top quotes from my conversation with Ed Grefenstette from The Dietrich Foundation. 1. “We believe over long periods of time, illiquid will outperform liquid, small will outperform large, and equities will outperform fixed income. We're really pushing the bounds of that.” 2. “You can’t outperform over the long term unless you’re willing to embrace an uncomfortably idiosyncratic portfolio.” 3. “Small companies are like small ships. It’s easier to turn a small ship than a large one, but modest waves can also capsize a small ship.” 4. “Private equity is true equity return. Public equity is a discounted or lower expected return. Liquidity isn’t free.” 5. “The market timer’s hall of fame is empty.” – Bill Dietrich 6. “If you don’t have good people, you can’t have a good deal.” 7. “Bill said, ‘You can’t shoot moose from the lodge. You have to get mud on your boots.’ So, we travel quite a bit on-ground.” 8. “If you get down to the wire, you’ve got to fight like you’re the third monkey going up the ramp into Noah’s Ark. You’ve got to do whatever it takes to get in with a manager you like.” – Bill Dietrich 9. “There's only so much beachfront property in the Dietrich portfolio, so it's either hell yes or no.” 10. “The investment committee should always be an odd number, and three is too big.” – Bill Dietrich 11. “Golf is the one game that teaches you a lot about life … good bounces, bad bounces are outside of your control, and all you can control is how you respond.” With thanks to WCM Investment Management and iConnections.