Other People's Money is the premier podcast about the business side of the fund management industry. Every week Max Wiethe sits down to learn from some of the b...
The Research to AUM Pipeline | Warren Pies on Raising $450m in an ETF in Less Than 6 Months
Having raised over $450m in less than 6 months, Warren Pies, Founder of 3Fourteen Research and Portfolio Manager of $FCTE, has had one of the most successful independent ETF launches of all time. Despite the seemingly overnight success of his fund management business, the real story is about the steady growth of his research business that feeds into everything they do.. He explains how his research business has become a pipeline of investor interest in his ETF business and how research relationships flip the traditional client interaction on its head. He also discusses why he chose to focus on setting good expectations with reasonable clients rather than playing the flashy retail newsletter game.
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51:34
Inside the Secret World of Prop Traders | Noel Smith of Convex Asset Management
Noel Smith, founder of Convex Asset Management has spent most of his career outside of the world of managing other people’s money. Instead, he traded his own capital as a proprietary trader. Prop traders are famed for generating staggering rates of return, but because they have no interest in raising money, their secrets and strategies generally remain behind closed doors. However, he has decided to bring these strategies to the hedge fund world at Convex Asset Management and while they don’t scale to produce the same level of returns their lack of availability outside the prop world gives him differentiation in the product marketplace. In this interview, Smith explains why props can make so much more money, how much harder capital raising is than he anticipated, and why he ranks relationships and likability higher than performance when it comes to hedge fund success.
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Apple Podcast https://bit.ly/4e7QJ1M
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Follow Noel Smith on Twitter: https://x.com/NoelConvex
Follow Max Wiethe on Twitter: https://x.com/maxwiethe
Timestamps:
00:00 Intro
01:16 What is Prop Trading?
10:51 Moving to the Hedge Fund World
16:36 The Hedge Fund Popularity Contest
23:04 Volatility Trading Strategies
27:27 Extracting Information From The Options Market
32:09 Scaling Prop Strategies
34:44 Alpha Degradation
39:31 Being Good Is Not Enough
48:03 Dealing With Extreme Performance
53:28 Long-term Vision For Convex Asset Management
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55:11
Active Management Still Matters in Emerging Markets | Jamie Carter
Jamie Carter, Partner and Managing Director at Variis Partners has spent much of his career focused on the world of long-only emerging-market investment boutiques. In this interview with Max Wiethe, Carter discusses the huge differences between building a long only business and a hedge fund business, why launching fund vehicles out of the UK has become more difficult, the differences in raising capital in the US, UK, and Europe, and why he thinks emerging markets are the last hold outs for fundamental active managers. He also explains why EM investors and allocators are holding their collective breath waiting to see how the Trump administration’s policies will impact global markets.
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Apple Podcast https://bit.ly/4e7QJ1M
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YouTube https://bit.ly/3C63VXR
You can learn more about Variis Partners on their website: https://www.variispartners.co.uk
Follow Max Wiethe on Twitter: https://x.com/maxwiethe
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1:16:54
The Investor Up 1000% With No Down Years | Chris Brown and Aristides Capital
Since Aristides Capital’s inception in August 2008, Chris Brown has returned over 1,000% for their investors with a stunning 16-year track record of no losing years. In this interview with Max Wiethe, Brown explains how they’ve been able to sustain these results and grow their business to over $300m in AUM all while operating far from the typical financial centers where hedge funds cluster. They discuss how accumulating a plethora of lower capacity strategies, hiring and working with “well intentioned nerds,” and maintaining rigorous processes for post-hoc analysis and feedback have been some of the keys to their investment success. They also touch on asset gathering from both HNW and institutional investors, attracting talent, and the reality that for small funds being in the top quartile or even decile of performance is a near necessity for reaching critical mass.
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Follow Chris Brown on Twitter: https://x.com/MidwestHedgie
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1:03:59
The Easiest Way to Launch a Hedge Fund | Understanding Fund Spinouts with Farid Guindo
Ask anyone and they will tell you it has never been harder to start a hedge fund. That’s why so many of the most successful launches of late have been funds emerging from a prior firm with the backing of the big boss, otherwise known as spinouts. Julian Robertson’s Tiger Cubs are the perhaps most famous spinouts, but it is still an extremely popular trend today. Farid Guindo, CIO and founder of Drill Capital Management is taking advantage of these dynamics to launch his new fund with the backing of his mentor and former boss at Bornite Capital, Dan Dreyfus. In this interview with Max Wiethe, Guindo discusses the ins and outs of fund spinouts, the importance of transparency and relationship building with bosses and mentors, and how his experience working at Tiger Cubs and other spinouts solidified his belief that this was the right path for Drill Capital after deciding it was best to be a separate vehicle outside of the Bornite umbrella.
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Apple Podcast https://bit.ly/4e7QJ1M
Spotify https://bit.ly/3Yhaazi
YouTube https://bit.ly/3C63VXR
Follow Farid Guindo on Twitter: https://x.com/FaridGuindo
Follow Max Wiethe on Twitter: https://x.com/maxwiethe
Other People's Money is the premier podcast about the business side of the fund management industry. Every week Max Wiethe sits down to learn from some of the best entrepreneurial fund managers about their experience launching and growing a fund management business. OPM is not a show about the next hot stock pick or big trade but an inside look at an opaque and misunderstood industry guided by real professional fund managers who've done it themselves.
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Max's Twitter: https://x.com/maxwiethe
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Watch OPM and our Partner Show Monetary Matters on YouTube: https://www.youtube.com/channel/UCeyqw1Ns_cnhSJh5XvXPWgw