A Deep Dive into Hedge Funds

[00:01:32] – How he discovered Campbell and the Hero’s Journey retreats

[00:04:51] – A dive into Ted’s backstory including his time at Yale and the formation of Protégé Partners

[00:06:29] – Lessons learned from David Swensen and his work in endowment management

[00:08:22] – What were some of the checklist items that worked out well in David Swensen’s model for investments in Yale’s University Endowment assets

[00:11:06] – A look at the structure that Yale had in their investments given their massive influence

[00:14:04] – Shift from Yale to Protégé and how many seed investments they made there

[00:16:00] – The success rate at Protégé and how it was measured

[00:17:20] – What styles were most prolific at Protégé Partners

[00:17:50] – The economics that a seeder takes in a hedge fund

[00:18:34] – What did they look for in the managers that they made investments in

[00:22:27] – How Ted was able to get his first investors to support Protégé at the beginning

[00:23:46] – Exploring the current state of fundraising

[00:25:45] – What role does charisma play in raising money in a hedge fund launch

[00:26:51] – The state of fees and where they need to be

[00:35:26] – The paradox of skill and why we seem to have higher fees for lower-skilled managers

[00:39:29] – Ted talks about fee structures for hedge funds that mimic frequent flyer programs and why that could work for hedge funds

[00:43:34] – Patrick suggests something radical, taking fee discounts, investing them over time, but investors lose them if they divest within a certain amount of time

[00:45:17] – A look at some unique styles of funds

[00:48:54] – Which of the edges would be most important to Ted in an investment decision: a strong pedigree, an impressive track record, or a unique idea?

[00:51:05] – Patrick questions whether or not all of the folks who are “successful” are in fact talented or did they just become lucky to be a part of the right team/company

[00:55:25] – Advice to allocators in terms of over-concentration vs over-diversification

[00:57:40] – A look at the most memorable investment during the Protégé Partner days

[01:00:22] – How would Ted counsel someone that wants to start a hedge fund

[01:04:27] – Is it getting too hard for allocators to compete with hedge funds

[01:07:43] – What other authors/resources have been helpful to Ted over the years

[01:10:45] – The habits that have been most helpful to Ted’s wellbeing

[01:13:03] – What have been the benefits of meditation for Ted

[01:14:28] – What are Ted’s next interests